Benefits to Suppliers
Being associated with a brand like Apple can be a remarkable boon for a supplier firm. Apart from the small novice firms, who may derive much of their business from Apple, even larger companies like Samsung use the relationship to their advantage. As we noted above, Samsung continues to compete with Apple in the mobile phone market, however, large orders from Apple allow Samsung to increase bulk production which reduces manufacturing costs for its own mobile phone components.
Another advantage for suppliers is that Apple has a reputation for innovation. Regardless of how specific products have performed, and despite missteps that have occurred, people expect Apple to come out with something new on a regular basis and eagerly anticipate these products. To a certain extent, this shields Apple suppliers, who will continue to see new demands for their goods and services.