Apple

• background


  -apple is a US transnational electronic technology corporation with its headquarters in California

  -founded 1976 yet experienced growth in 2000's

  -largest technology company by revenue

  -in 2022 was the most valuable brand

  -164,000 worldwide- 90,000 of these in the USA
• why has apple been succesfull

  -reliable, good product

  -appearance feels expensive

  -global marketing one branding strategy e.g all products under 'i' products

  -regularly updating
• spatial organisation of Apple- USA

  -HQ-research and design in california (agglomeration easing info exchange), five data centres in: Santa clara, california, oregon and North Carolina

  -Macpro assembly in Austin Texas with more expansions planned (protectionist schemes)
• spatial organisation of Apple- Europe

  -European HQ in Cork, Ireland with 6000 workers on production line, customer service and call centre

  -New HQ in London

  -Wifi chips sourced from Europe, Americas and asia
• spatial organisation of Apple- Asia


  -Foxconn factories in China assembly ipads, iphones and subcontract to component manufacturers

  -assembly of apple's main products outsourced to taiwanese companies e.g foxconn pegatron with chinese factories

  -HOWEVER there is a shift to manufacturing in India
• why products outsourced to china?

  -outsource production to taiwanese electronic firms which offer low production costs

  -largely young, unskilled and non-unionised workers

  -Shezen was location of China's first and most successful special economic zone providing may benefits
• examples of vertical integration in apple

  -iPhones and ipads have hardware and software designed by apple with processors also designed by them
• examples of horizontal integration in apple

  -1982 apple took over macintosh organisation and has achieved more success by launching applemac computers
• positive impacts of Apple in china


  -apple now limits student interns to 10% of the workforce

  -following criticism from GreenPeace, apple responded with Green my Apple campaign removed all PVC plastic and toxic chemicals from its products
• negative impacts of Apple in China

  -workers in Foxconn's high security factory complexes live onsite most young, migrant workers work 62 hours a week on £300 a month in poor conditions with little health and safety equipment

  -2017 student interns working in Foxconn worked illegally long shifts

  -Apple caught in trade wars causing heavy tariffs on Chinese imports to the USA

  -Chinese factories discharging pollutants and toxic metals into local water supply threatening public health
• positive impacts in Cork

  -largest private employer in Cork, 6000 jobs

  -increases connectivity of Ireland e.g over 100 people work in the logistics team remotely organising shipping of products to over 50 countries

  -generated 3000 jobs for ancillary workers

  -apple's presence has attracted other high tech firms to the area providing inspo for higher education

  -company has expanded leading to infrastructure improvements in the area
• negative impacts in Cork

  -many highly skilled workers are foreign nationals from the EU apple criticised for not creating jobs for the local people

  -apple uses subsidiary firms in other countries to declare profits reducing taxes in 2014 both the USA and EU claimed apple received favourable treatment by the Irsish government increasing tensions as both USA and EY demanded apple owed them tax on profits