Apple

Cards (44)

  • Who is Apple INC?
    Is a US transnational electronic technology corporation with its company headquarters based in Cupertino, Northern California.
  • Apple is now the world's .... ?
    Second largest IT company by revenue.
    Number one global brand
  • Apple's success has been due to a number of factors...
    -Stylish and well designed products.
    -Slick marketing and branding.
    -Innovative products.
  • Who is their market?
    Predominantly in richer, developed countries. In 2011, 44% of product sales were in USA. Its average market profile consists of young, wealthy, educated people who are prepared to pay premium prices for their products.
  • Its spatial organisation
    -6 data centres in USA.
    -European headquarters in Cork.
    -Factories in Foxconn.
    -HQ in California.
  • California is a good example of...
    agglomeration.
  • Why is Apple's production in China
    -A large source of highly skilled, hard working and low paid workers (providing jobs and investment).
    - A number of, mainly Taiwanese, companies competing for Apple's manufacturing contract, which force down production cost.
    - Shenzen was the location of China's first and most successful special economic zone offering a number of incentives to attract foreign companies.
  • What is 'Foxconn city'?
    A business park which has a number of factories belonging to different manufactures who assemble high tech products for well known brands.
  • How many people are employed in Foxconn city?
    400,000
  • Where is Apple's European HQ?
    Hollyhill, Cork, Ireland.
  • Why did Apple locate in Cork?
    Apple was lured to locate in Ireland by the government's 12.5% cooperation tax, the second lowest in the EU.
  • Positives of locating in Cork...
    - Employment, 4,000 workers directly on its iMac production line and call centre.
    - The companies present has attracted other high-tech firms into the area.
    - It has also attracted a highly skilled workforce and provided an inspiration for local education, R&D.
    - The company has expanded and contributed to infrastructural development in the city.
    - Together with other companies locating in the South and West of Ireland, Apple has enhanced Ireland's reputation for hosting high-tech TNCs which contributed to the 'Celtic Tiger' economy of the 1990s and early 2000s.
  • Negative aspects of Apple's involvement in Ireland
    Many of the more highly skilled workers at Hollyhill are foreign nationals, so Apple is accused of not creating sufficient work for the local people. The counter-arguments to this are that this has helped Cork become a more vibrant cosmopolitan city and that at least 60% of workers are Irish.
  • What is the issue alongside Apple's tax practises?
    Apple has been accused of corporate tax avoidance. As a TNC operating in a number of countries, Apple can use subsidiary firms in other countries to declare profits and pay a lower rate of tax. In 2014, both the US senate and EU accused Apple of receiving favourable treatment on tax form the Irish government, although strenuously denied. This created tension between USA and the EU as each claimed that Apple owed them tax on their profits.
  • Negative aspects of Apple's involvement in China (Labour practices).
    -Working conditions
    -Health and Safety
    -Student and Child Labour
    -Suicides.
  • China's working conditions
    In 2006, it was reported that 200,000 workers who lived and worked in the Shenzen factory were regularly working more than 60 hours a week, for around $100 a month.
    Media reports used the term 'sweatshop conditions'.
  • China's health and safety
    In 2010, 50 workers at Lianjian Technology were poisoned by a toxic chemical used to clean Ipad screens and decided to sue Apple. In order to reduce costs, adequate ventilation had not been installed.
  • China's student and child labour
    Foxconn's use of child and student labour is part of its objective of maintaining a low-cost and flexible labour force. Employmees under 18 are subjected to the same working conditions as adults. Provincial authorities supported the policy by allowing them to be graded as interns or trainees.
  • China's suicides
    In 2009, a Foxconn Apple worker committed suicide after coming under pressure following the disappearance of a prototype model of the Iphone 4. By the end of 2010, a total of 14 suicides had occurred, largely a consequence of the severe working conditions.
  • Who have criticised Apple for their environmental practises?
    Greenpeace
  • On what accounts have Apple been criticised for their environmental practises?
    -Its reliance on non-renewable resources to supply electricity to its data centres.
    -Use of toxic chemicals such as PVC and brominated flame retardants in their manufacturing processes.
    -Factories in China were discharging pollutants and toxic metals into local water supplies, threatening public health.
    -The lack of recyclability of many Apple products.
  • How did Apple response to its environmental criticisms?
    Apple responded by launching its 'Green my Apple' campaign to improve its green credentials. It now uses 75% renewable energy , investing in large solar farms to power its data centres. It made the decision to removed PVC and brominate flame retardants from its products and promote recycling. As a result it has moved up the Green electronics ranking from 11th to 6th.
  • Conclusion....
    Globalisation of Apple is not solely not a positive or negative process.
  • Where is Apple Inc. from?
    Headquarters are in Cupertino, northern California.
  • Why is apple an important TNC?
    Number one global brand by value (US$145 billion) Second largest IT company by revenue, 2014- 11th largest TNC.
  • How many people does apple employ?
    Over 98,000
  • Where are apple products consumed?
    Developed countries- the US- 44% of products. Mostly young, wealthy and educated. Rapid growth now in the Asia-Pacific region.
  • Where does apple operate?

    Headquarters in California, USA, European headquarters in Ireland, assembly of products in China.
  • Where are most of apple's employees located?
    In the developed world, this reflects the high end, knowledge intensive nature of its business.
  • What is 'silicon valley'?

    A nickname for an 'agglomeration' region in north california associated with high-end electronics industries.
  • How does Apple get its products manufactured and assembled?
    It outsources production to a Taiwanese company, Foxconn. Foxconn further subcontracts work to other component manufacturers.
  • What work is carried out at the headquarters?
    research and development, customer support, online call centres.
  • Where are apple retail stores?
    Of the 453 stores, 110 are in Europe and the Middle East and 25 are in China; apple plans to open more in China.
  • Why would apple locate production and assembly in China?
    Large highly skilled, hardworking and low paid workforce
    Lots of competition for the contract (forced down prices)
    Shenzen is a 'Special Economic Zone'.
  • What is 'Foxconn city'?
    China's equivalent to silicon valley; a self contained enormous complex in Shenzen with dormitories, shops and cafes for 4000,000 workers to live on site, producing electronics.
  • Why did Apple chose to locate its European headquarters in Hollyhill, Ireland?
    Government had very low (12.5%) corporation tax.
  • What has been the positive impact of Apple in Cork?
    Provided employment for 4,000 workers and had a multiplier effect in the region attracting more technology firms- this all contributed to Apple as a 'Celtic tiger' firm.
  • What has been a negative impact of Apple in Cork
    Many jobs are not for locals but for very specialist skills attracting economic migrants from overseas?
  • What has Apple been accused of not paying by the US and the EU?
    Corporate tax; using subsidiary firms in other countries to declare profits and pay a lower rate of tax.
  • What have been the issues with China's labour practises?
    Poor working conditions, long working hours, health and safety issues, student and child labour, suicides in 2009 and 2010.