How Apple Ships Millions of iPhones for Simultaneous Delivery

Apple's operations department is currently overseeing the shipment of millions of iPhones to nine countries around the world for a launch event on September 20. The iPhone 5c and 5s will go on sale simultaneously in the U.S., Australia, Canada, China, France, Germany, Japan, Singapore, and the UK.

Bloomberg examined how Apple manages such a rollout and the logistical operation it uses to get the phones where they need to be.

FedEx 777
Apple moves finished iPhones from Foxconn and Pegatron factories to shipping companies with a protective security detail. Then they are loaded onto airplanes via "pre-bought airfreight space" including former Russian military transports and, for shipments to the U.S., aboard FedEx Boeing 777 freight planes, like the one pictured above.

Bloomberg says the company makes constant adjustments to iPhone shipments based on real-time product demand. Apple organizes teams from sales, marketing, operations and finance to estimate how many devices will be needed, and millions of phones are shipped to distribution hubs around the world ahead of the public announcement of the launch.

Before Apple's formal unveiling on stage, iPhones are shipped to distribution centers around the world, including Australia, China, the Czech Republic, Japan, Singapore, the U.K. and the U.S., said one of the people with knowledge of the matter. Security personnel are with the devices every step of the way, from truck depots, airports, customs and storage warehouses until the product is finally unveiled, two people said.

FedEx ships Apple handsets to the U.S. mainly using Boeing 777s, according to Satish Jindel, a logistics-industry consultant and president of SJ Consulting Group. Those planes can make the 15-hour flight from China to the main U.S. hub for freight shipments in Memphis, Tennessee, without refueling, Jindel said. The 777s can carry about 450,000 iPhones and cost about $242,000 to charter, with fuel accounting for more than half the expense.

After the new product launch, Apple continues to "manage the flow of orders from people looking for a specific color [or] memory size". The iPhone 5s will come in 3 colors and 3 capacities, while the 5c has 5 colors and 2 capacities -- not to mention different models for each carrier around the world.

By monitoring sales from its retail stores, website and third-party resellers, Apple reallocates handsets based on where demand is strongest, one of the people said. iPhones coming off the assembly line in China originally destined for retail stores in Europe could be used to fill a bump in online orders, for instance. The process involves crunching a lot of data.

The iPhone 5s and iPhone 5c will go on sale in 9 countries on September 20. The iPhone 5c will be available for preorder on September 13.

(Image courtesy Flickr/BriYYZ)

Top Rated Comments

Nykwil Avatar
131 months ago
Still iPhone 5C is a rip off.

Thank you for contributing your astute insight into this topic. A class member here.
Score: 22 Votes (Like | Disagree)
pk7 Avatar
131 months ago
As an aviation aficionado - love the Boeing 777. My favorite airliner. Beautiful, quiet, and efficient.

A beautiful plane to deliver beautiful products :D
Score: 17 Votes (Like | Disagree)
WatchTheThrone Avatar
131 months ago
This is where Tim Cook shines. Logistics.
Score: 14 Votes (Like | Disagree)
jreed91 Avatar
131 months ago
That seems like a lot of work just to keep the phones a secret till the very last second.

Especially when everyone knew all of the details ahead of time.
They would have to do this even if it wasn't a secret.
Score: 10 Votes (Like | Disagree)
lostngone Avatar
131 months ago
If you live in Alaska and you order from Apple you most likely know how crazy Fedex Logistics is....

9 or of 10 times I order a Apple product it leaves China lands in Anchorage then leaves Anchorage and goes down to the lower 48 and gets shipped back to Anchorage?!?!

When you check to tracking site and it shows it is only about 4 miles away and the next time you check it is 1000+ miles away.
Score: 9 Votes (Like | Disagree)
jfx94 Avatar
131 months ago
Ops is something in which Apple, especially under TC, really excels.

Highly efficient.
Score: 9 Votes (Like | Disagree)

Popular Stories

iphone se 4 modified flag edges

iPhone SE 4 Details: Action Button, USB-C Port, Face ID, and More

Wednesday September 27, 2023 1:34 pm PDT by
Significant changes are expected to arrive with Apple's fourth-generation iPhone SE, in terms of both design and hardware, MacRumors has learned. The iPhone SE 4, known internally under the codename Ghost, is expected to receive a new design derived almost entirely from the base model iPhone 14. According to our sources, the iPhone SE 4 will use a modified version of the iPhone 14 chassis...
iOS 17

Apple Releases iOS 17.0.2 and iPadOS 17.0.2 for All iPhones and iPads

Tuesday September 26, 2023 12:47 pm PDT by
Apple today released iOS 17.0.2 and iPadOS 17.0.2 updates, with the software coming five days after the releases of iOS 17.0.1 and iPadOS 17.0.1. Today's iOS 17.0.2 and iPadOS 17.0.2 updates arrive as build 21A351 and can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. Note that iOS 17.0.2 was previously made available for iPhone...
iOS 17

Everything New in iOS 17.1 Beta 1

Wednesday September 27, 2023 1:57 pm PDT by
Just a week after releasing iOS 17, Apple has seeded the first beta of iOS 17.1 to developers. iOS 17.1 adds some features that Apple promised were coming to iOS 17 in the future, plus it refines and improves some existing features. This guide covers everything new in the first iOS 17.1 beta. Apple Music Favorites You can favorite songs, albums, playlists, and artists in the iOS 17.1...
iPhone 15 Pro lineup

iPhone 15 Pro Overheating Concerns Highlighted in Two More Reports

Thursday September 28, 2023 6:25 am PDT by
iPhone 15 Pro and Pro Max overheating concerns continue to make headlines this week, with the topic highlighted by The Wall Street Journal and Bloomberg. Both of the reports document anecdotal complaints from customers, and outline potential causes, but it's unclear how many devices are actually affected. Bloomberg said the overheating could be caused or compounded by the iPhone's setup...
iPhone 15 Pro Lineup Feature

Kuo: iPhone 15 Pro Overheating Issues Likely Due to Thermal Compromises, Not 3nm Node

Tuesday September 26, 2023 9:12 am PDT by
Complaints about heat issues with the iPhone 15 Pro models are not related to TSMC's 3-nanometer node that was used for the A17 Pro chip, according to well-respected Apple analyst Ming-Chi Kuo. Kuo says that overheating could be caused by "compromises made in the thermal system design" that allowed Apple to cut down on the weight of the iPhone 15 Pro models. Kuo says that the reduced heat...
iPhone 15 USB C Port Keynote

Some USB-C Power Banks Fail to Work With iPhone 15

Thursday September 28, 2023 2:06 pm PDT by
Apple added a USB-C port to the iPhone 15 lineup this year, allowing it to work with USB-C cables, USB-C power banks, and more. It turns out that some USB-C battery packs are not working properly with Apple's iPhone 15, resulting in charging issues. As highlighted on Reddit and the MacRumors forums, not all existing USB-C power banks can be used with the iPhone 15 models, perhaps due to the...
Mac Gaming

Apple Explains How Game Mode Works in macOS Sonoma

Wednesday September 27, 2023 2:24 am PDT by
In macOS Sonoma, Game Mode prioritizes CPU and GPU performance for gaming purposes on Macs. For those unfamiliar with Game Mode, Apple on Tuesday published a support document providing more information on how to use the new feature. Game Mode optimizes your gaming experience by giving your game the highest priority access to your CPU and GPU, lowering usage for background tasks. And it...