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Apple Is Making Hit Products and High Profits From Imperfect Chips

Apple Is Making Hit Products and High Profits From Imperfect Chips

Tech The Wall Street Journal
Apple successfully maximizes profits by strategically repurposing imperfect chips that don't meet top-tier product standards into other devices.
What: Apple implements a business strategy where chips with minor imperfections, which might otherwise be discarded or used for lower-profit purposes, are repurposed for other products in their lineup. This practice, combined with sophisticated supply chain management, allows the company to extract maximum value from its silicon manufacturing.
Why it matters: This strategy demonstrates the depth of Apple's vertical integration and control over its supply chain, enabling them to turn what might be considered waste into profitable components, enhancing their overall profit margins and operational efficiency.
Original article

Repurposing chips is one of the many ways Apple leverages its supply chain.

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