When asked the inevitable questions about the impact of Japan’s recent earthquake and tsunami tragedy on Apple’s business, acting COO Tim Cook made clear that what matters, more than anything else, is the human impact. That being said: as it turns out, Apple’s supply chain has remarkably remained largely intact.
Cook cited that Apple would see an understandable revenue impact next quarter of about $US200 million, but praised the resilience of Apple’s suppliers in the face of incredible adversity. Apple sources literally hundreds of components from Japan. Nearly every product the company sells relies on parts produced there. But a combination of Apple employees working “around the clock” on contingency plans, and Japanese suppliers working through the most extraordinarily difficult time in their lives, there’s been no supply or cost impact.
Obviously, Cook is right that the human tragedy is what matters here. But part of that human story is the country’s ability to get back to normal, back to work, back to life. Which the supply chain has apparently done flawlessly.