Apple's Supply-Chain Secret? Hoard Lasers

About five years ago, Apple (AAPL) design guru Jony Ive decided he wanted a new feature for the next MacBook: a small dot of green light above the screen, shining through the computer’s aluminum casing to indicate when its camera was on. The problem? It’s physically impossible to shine light through metal. Ive called in a team of manufacturing and materials experts to figure out how to make the impossible possible, according to a former employee familiar with the development who requested anonymity to avoid irking Apple. Applying that solution at massive volume was a different matter. Most of Apple’s customers have probably never given that green light a second thought, but its creation speaks to a massive competitive advantage for Apple: Operations. This operational edge is what enables Apple to handle massive product launches without having to maintain large, profit-sapping inventories. Not every supplier gives in. Apple’s retail stores give it a final operational advantage.

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