Apple case study

• What type of company is Apple?

  US transnational electronic tech corporation
• Where is Apple's headquarters located?

  Northern California
• When was Apple founded?

  1976
• How has Apple's growth been characterized since 2000?

  Phenomenal growth
• How many employees did Apple have as of 2019?

  137,000 employees
• How many retail stores does Apple have as of 2019?

  510 retail stores
• In how many countries does Apple operate retail stores as of 2019?

  22 countries
• What is Apple's ranking in terms of IT company revenue?

  Largest IT company by revenue
• What is Apple's global brand ranking by revenue value?

  1. 1 global brand by revenue value
• What are some reasons for Apple's success?

  Stylish design, brand loyalty, innovation
• When was Apple Inc. founded?

  1976
• Where is Apple Inc.'s headquarters located?

  Northern California
• How many employees did Apple have as of 2019?

  137,000
• In how many countries did Apple have retail stores as of 2019?

  22
• What is Apple's ranking as the largest IT company by revenue?

  1. 1
• Why has Apple been successful?

  Stylish, well-designed products, brand loyalty, innovative products, diversification into new tech, and selling products & services together with music and TV programs
• Where are Apple's main products designed?

  Silicon Valley
• Where are Apple's main products manufactured?

  Mainland China by Foxconn (a Taiwanese company)
• Where are most of Apple's employees based?

  HDES (eg USA)
• Why does Apple's spatial organization and linkages project a high-tech, knowledge-intensive business?

  Main products are designed in Silicon Valley, and 2.5 million people are employed by other companies to manufacture Apple's products
• How many people does Apple employ in the United States?

  90,000
• Why are Apple's main products produced in China?

  Apple can outsource production to established Taiwanese electronic firms, and China has a large, young, skilled, non-unionized workforce willing to work long hours for low wages
• How does Apple's lean production system and exceptional inventory management contribute to its spatial organization?

  Apple's lean production system and inventory management allow it to make the most of its US spatial organization by shipping components directly to the assembly in China
• Why did Apple locate its European headquarters in Ireland?

  Ireland had low unemployment and corporate tax rates in the 1980s
• How many people does Apple employ in Ireland?

  6,000
• How has Apple's presence in Ireland impacted the country?

  It has enhanced Ireland's reputation and global connectivity, attracted other high-tech firms to the area, attracted a highly skilled workforce, and contributed to infrastructure improvements in the country
• What was Apple accused of receiving from Ireland?

  Favorable tax treatment
• What was the outcome of the European Commission's investigation into Apple's tax arrangements in Ireland?

  The European Commission found that Apple had received illegal tax breaks from Ireland and ordered Apple to pay $13 billion in unpaid taxes
• What were the working conditions like for Foxconn workers who manufactured Apple products in China?

  Foxconn workers lived on-site in dorms, worked an average of 62 hours per week, and earned only $300 per month
• What health and safety issues did Foxconn workers face while manufacturing Apple products?

  Workers were exposed to toxic chemicals, and earplugs and goggles were not always available on some machinery
• What was the issue with student interns working at Foxconn factories that manufactured Apple products?

  Some contractors were employing high school students as interns, and they were working excessive hours
• How did Apple respond to the environmental issues raised by Greenpeace regarding its products?

  Apple launched a campaign to use 100% renewable energy in its US facilities, removed all PVC plastics and toxic chemicals, and promoted the recycling of its products
• How has Apple's presence in the US impacted the country?

  Apple continues to have a positive economic impact on Arizona, and its investment in renewable energy will help green the power grid
• How has the US-China trade war impacted Apple?

  Apple has been caught in the crossfire between the US and China, with the US imposing heavy tariffs on Chinese imports, including Apple products
• What has Apple done in response to the US-China trade war?

  Apple has aimed to reinvigorate its domestic manufacturing in the US and has invested more in US suppliers
• Why has Apple faced challenges in entering the Indian market?

  Apple has faced tough competition in the Indian market from other smartphone manufacturers
• What has happened to Apple's market share in China in recent years?

  Apple's peak market share in China has declined, and it now faces increased competition from Huawei
• What are the key factors that have contributed to Apple's success?

  • Stylish, well-designed products
  • Strong brand loyalty through branding
  • Innovative products
  • Diversification into new technologies
  • Selling products and services together (e.g., music, TV programs)
• How does Apple's spatial organization and linkages contribute to its high-tech, knowledge-intensive business model?

  • Main products designed in Silicon Valley
  • Manufacturing outsourced to Foxconn in China
  • Most employees based in the US
  • Concentration of R&D in Silicon Valley (agglomeration)
  • 2.5 million employed by other companies to manufacture Apple's products
• What are the key reasons why Apple's main products are produced in China?

  • Ability to outsource production to established Taiwanese electronic firms
  • Large, young, skilled, and non-unionized workforce in China
  • Workers willing to work long hours for low wages
  • Shenzhen's status as China's first special economic zone, offering incentives to attract foreign companies