How Apple cuts costs in building its gadgets  By Mark Milian, CNN 8:20 PM EST, Mon February 6, 2012

The Apple corporation has become one of the biggest companies worldwide it sells a variety of different products and all of them seem to sell at an alarming rate, In order to keep up with the demand for Apple products Apple deals with companies overseas to help them manufacture the product  at a lower cost. In order to create these products they have used overseas businesses to cut costs which has helped them become one of the richest companies on Wall Street. So how do they cut the costs?? When apple first started building their company they moved the manufacturing process overseas where the cost of work salaries is much lower. They do business with over 150 companies to get the materials and parts they need for their products. Every company that does business with apple tends to also have a significant rise in stock. Because they invest with so many different companies they are able to get parts at a lower price, especially when they buy product and materials in such bulk. Apple’s business technique for creating their products has helped them cut costs and therefore create a larger profit margin. An Example is that it costs apple $196 to create the iPhone 4S of which they sell for $649 contract free. When you are selling a Product with that high of a profit margin, and people still run to get the product, the profits will high. In my opinion the way that apple does their business, especially when considering their oversea manufacturing, is the best way to do business when you are selling that much product. The more apple cuts cost by buying from different parts and materials from different manufactures the cheaper it is for them to create their products. Because Apple buys from so many different companies it is easy for them to create competition for the materials they need, the more competition that they create the cheaper the parts are. Apples business technique is one of the best in the world.