Final answer:
Apple's business model focuses on design and innovation while using international trade, relying on comparative advantages of various countries for efficient production. This allows Apple to maintain high standards and competitive pricing. The partnership with Samsung and global production strategy efficiently supports Apple's business strategies.
Step-by-step explanation:
The Apple company's business model centers on leveraging its strengths in design and innovation to execute its business strategies. Apple focuses on creating elegant, user-friendly products while it relies on international trade to aid production. This model is exemplified by its relationship with Samsung, which, despite being a competitor, is also a key supplier of components for Apple's iPhones. Apple capitalizes on Samsung's expertise in manufacturing high-quality electronic parts, which enables Apple to obtain superior components at competitive prices.
Additionally, Apple's global strategy involves harnessing the comparative advantages of different countries: engineering and design in the United States, component production in Korea, and assembly in China. The United States has built a comparative advantage in high-tech design, whereas Korea has done the same in manufacturing components like screens and chips through innovation and scale efficiency. China's large skilled labor force gives it the edge in assembly. This international collaboration allows for a high-quality product while keeping production costs competitive, directly supporting Apple's business strategies of maintaining premium value for their products.
Just as Amazon has successfully utilized its production model and cost structure to stay ahead in retail by setting competitive prices, Apple's approach to utilizing international economic principles solidifies its position in the technology sector. The concept of mutually beneficial exchange is at the heart of these relationships, offering gains in trade and production for Apple and its international partners.