Perhaps there is no such person who would approve the pricing policy of Apple. No, everyone understands why the products are so expensive, but it is unlikely someone would be sorely disappointed if Cupertino made it a little cheaper. Another thing is that for some reason no one thinks that Apple could easily provide even more than it’s sold now. Not because the company is run by philanthropists, which do not feed bread, give to make someone a good deed, but because an important position is a highly responsible person, able to defend the interests of Apple.
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This phone is cheaper than I could, thanks to the Vice President of procurement Tony Blevins. He has been with the company since 2000, and before that with Tim cook worked at IBM. Blevins started with the procurement of common goods necessary for the functioning of the company, but quickly went up the ladder and moved on to the procurement of components for the iPod. However, the name he himself did in the conclusion of a five-year deal for the supply of memory chips, which turned out to be extremely profitable for Apple, with the result that he began to entrust more important projects.
How Apple saves on his technique
The approach of Blevins is to sign a contract for the supply on the most favorable terms. For this, he goes to all sorts of tricks, often pushing different vendors with each other. In his opinion, saving even 10% on parts faster will lead to higher corporate profits than selling large volumes of equipment. This position is shared Tim cook, which, according to The Wall Street Journal, appreciates the Blevins for his meticulousness and courage when negotiating with suppliers.
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One of the revealing moments in the biography of Blevins, which characterizes it as well as possible, began negotiations to supply protective glasses for the iPhone. Then Blevins brought together representatives of several companies in the same business center, but placed them in different conference rooms and moved between them, knocking the most favorable price. As a result, it all turned out, and Apple saved perhaps tens of millions of dollars. In many ways, it helped the ability to bluff, which some vendors began to think that I could lose a lucrative contract and made concessions.
Bluffing as Apple employees
However, sometimes a bluff turns against Apple. There was a case when Blevins promised TSMC engaged in the production processor for iPhone and iPad that will cause Qualcomm to abandon claims to royalty, which TSMC was obliged to pay for the use of patented developments. Showing self-confidence, a top Manager told the Taiwanese to stop the payments, but negotiate with Qualcomm and could not. Moreover, Qualcomm went to court and got the compensation of $ 8 billion.
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Judging by the history with TSMC and Qualcomm, we can conclude that the Blevins as somewhat eccentric man. This is confirmed by the way he behaved in the negotiations with the leadership of Japan Display, which Apple ordered a batch of displays for its smartphones. Blevins forced the Japanese lawyers to sign a nondisclosure agreement, which subsequently turned out to have serious consequences. For some unknown reason, the head of Japan Display went public the fact of cooperation with Apple. Then Blevins personally arrived in Japan, I yelled at the head of the company-partner, called him a fool and threatened 5 million fine, which Japan Display did not pay, but promised to compensate for breach of contract in another way.