Investors may want to hold a company that makes a crucial component for a fast-growing firm. The supply chain also gives an idea of what's in the works for a company like Apple, where there's a lot of anticipation surrounding a new product.
Apple designs its products in the United States, but overseas manufacturers such as Flextronics and Foxconn make its products. Rioting at a Foxconn factory involved about 2,000 employees and gave Apple's labor practices a black eye. Now Apple chief executive officer Tim Cook says the company is investing $100 million for a plant in Texas to assemble Macs. Being informed about a company's operations helps investors assess the effect of labor troubles or natural disasters.
