Apple for years has left competitors scrambling for parts — while locking up its own healthy supply.
Apple has used a range of tactics, from investing in suppliers to pre-paying for components.Why it matters:How it works:
As the iPod shifted to using flash memory rather than a hard drive, Apple ensured that it had the lion's share of the type of memory needed for the iPod, allowing its sales to take off and again leaving competitors short of the components needed.: Apple has used a range of tactics to line up capacity, from investing in suppliers to pre-paying for components.
These days, it also benefits from its mammoth scale. It is often its suppliers' biggest customer, meaning that when it comes time to decide who gets more of a scarce product, Apple is usually first in line.
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