apple

• Headquarters


  Cupertino, northern California
• 1976


  Year the Company started business in
• 1982


  The Year Apple took over MacIntosh organisation
• $ 234.6 billion


  Global brand value in 2017 according to Statistica
• 123,000


  Number of full time employees in 2017
• 9th


  Largest TNC in the world in 2016 on Fortune 500 list
• 44%


  % of sales in USA in 2011
• Reasons for growth


  Slick marketing and branding

  innovative products that are market leaders

  well designed brands, mobile devices

  extra products such as applications, music and video
• Cork, Ireland


  Location of the European HQ of Apple
• Data centres


  Are found in Newark and Santa Clara in California, and on the eastern seaboard at Maidan, North Carolina
• 499


  Number of retail stores worldwide across 22 countries, most are found in N.America, Europe and Asia
• Foxconn, Shenzen


  The location of production which has been outsourced
• SEZ


  Special Enterprise Zone, an area where the Chinese government initially allowed western companies to operate in China in the 1980s. Shenzen was the first.
• Why was Apple attracted to Ireland

  12.5% corporation tax (2nd lowest in EU)
• Child labour

  Children and students used for low cost labour under the same working conditions as adults
• Number of workers in Cork, Ireland

  4000 (production line and call centre) 2500 (Indirectly)
• Positives of Apple in Cork

  Attracted more high tech companies and improvement on infrastructure
• Corporate tax avoidance


  Where companies use subsidiary firms in other countries to declare profits and pay a lower rate of tax, Apple has been accused of this
• 2014


  The year when was Apple investigated by the US senate and EU commission with both concluding that Irish Gov gave Apple favourable treatment
• 60 hours/week for $100/month


  Shenzen factory workers hours and pay 2006
• 50


  Number of workers poisoned in Shenzen by toxic chemicals: a major Health and safety concern in 2010
• 14


  Number of suicides in Shenzen plants as a result of poor working conditions
• Reliance on non

  Renewable electricity and lack of recyclability of products-A criticism of Apple's environmental credentials from Greenpeace
• Public health in China is threatened by

  Factories in China discharging pollutants and toxic metals in local water supplies and use of toxic chemicals such as PVC and brominated flame retardants
• Green my Apple'


  Response from Apple to Green Peace criticism via a campaign

  uses:

  75% green energy

  removed toxic chemicals from production

  made products more recyclable
• what is apple


  - US producer and retailer of computer tech and mobile electronic devices

  - transnational corporation
• growth of apple


  - produces high-tech products marketed under the 'i' brand e.g.iPhone

  - started businesses 1976

  - took over MacIntosh organisation 1982

  - phenomenal growth since 2000 due to development of mobile + WIFI devices

  - over past 5 years, most rapid growth outside USA - especially Asia-pacific region

  - largely due to global demand for iPhone

  - market predominantly in richer, developed

  - wealthy, young, educated who are prepared to pay premium price for products
• key facts


  - 98,000 full-time employees

  - over 450 retail stores in 16 countries

  - 2014 - largest TNC globally with total assets of US $207bn

  - 2011 - 44% sales in USA
• the world's ...


  - 2nd largest IT company by revenue

  - 3rd largest mobile manufacturer

  - largest music retailer

  - number 1 global brand by value ($145 bn)
• success due to


  - stylish, innovative + well-designed products

  - slick marketing and branding - generating number of customer with brand loyalty

  - focus highly on mobile devices - fits their markets needs

  - selling via the internet, music + apps etc
• spatial organisation


  - global company

  - main products designed in Silicon Valley, California

  - made in mainland china by Foxconn (Taiwan-based company)

  - sold all over world - especially developed

  
  

  - most employees based in developed, mainly USA

  - reflects high-tech and knowledge-intensive nature

  
  

  - concentration of research and design and data centre location in Silicon Vally - good example of agglomeration - typical of high-tech industries where info exchange and access to well-qualified and expert staff is crucial

  
  

  - of its 453 retail stores, 110 are in europe and the Middle East and 25 are in china - where it increased its market by 600 million people
• why are mainstream products produced in china

  - large source of highly-skilled, hard-working but low-paid workers - good for china as provides some investment into country and generates jobs

  - number of mainly Taiwanese companies competed for the apple manufacturing contract, which forced down production costs

  - Shenzen was the location of chinas first + most successful Special Economic Zone offering number of incentives to attract foreign companies
• Foxconn city


  - business park and has number of factories belonging to diff manufacturers who assemble high-tech products for well-known brands

  
  

  - 'China's Silicon Valley'

  - most workers live on site - 400,000 workers employed

  - wages paid on site around $150 to $200 per month - above average minimum wage and higher than in other parts of Shenzen and China
• impacts on countries where it operates

  - controversial claims about business operations + their impacts

  - demonstrate the risks of locating overseas + outsourcing production to foreign companies
• Ireland - Cork info

  - apple's European HQ based in Hollyhill - north of Cork

  - only full apple-owned manufacturing facility in world

  - lured to locate by gov's 12.5% corporation tax - second lowest in EU

  - generally positive impact on Ireland
• Ireland - Cork

  positives

  - employs 4,000 workers directly on its iMac production line + call centre - Cork's largest private employer

  - generated further 2,500 jobs for workers part of supply chain or in ancillary work

  - attracted other high-tech firms to the area

  - attracted highly-skilled workforce + provided inspiration for local education, research + development

  - company expanded and contributed to infrastructural improvements of city

  - enhanced republic's rep for hosting high-tech TNCs which contributed to the 'Celtic Tiger' economy of the 1990s and early 2000s
• Ireland - Cork

  negatives

  - many of more skilled workers at Hollyhill are foreign nationals so apple accused of not creating sufficient work for locals

  - counter-argument is this helped Cork become a more vibrant cosmopolitan city and at least 60% of workers are Irish - though many of these are production line workers
• Ireland - Cork

  tax practices

  - Apple accused of corporate tax avoidance

  - TNC operating in a number of countries so can use subsidiary firms in other countries to declare profits and pay lower rate of tax

  - US senate and EU commission claimed Apple received favourable treatment from Irish government

  - Caused tension between US and EU as each claimed Apple owed them tax on their profits - exposes flaw in increasingly globalised world

  - Taxation systems need to be updated to accomodate large TNCs, which manufacture most of its products in China but derives majority of its profit from 'intellectual property', marketing, patenting and branding - can be funnelled through a maze of subsidiaries
• china

  working conditions

  - 2006 - reported 200,000 workers who lives and worked in Shenzen factory regularly working more than 60 hours a week for around $100 a month

  - 50% of which taken up by living expenses

  - sweatshop conditions
• china

  health and safety

  - 2010 - 50 workers at Lianjian Technology (company subcontracted by Foxconn) poisoned by toxic chemical used to clean screens + sued apple

  - to reduce costs, adequate ventilation has not been installed