TNC APPLE CASE STUDY

• 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.
• What has apple done to try and improve standards in its Chinese assembly plants?

  A supplier 'code of conduct' and regular audits of factories.
• What have been the criticisms of apple's environmental credentials?

  Reliance on non-renewable energy, use of toxic chemicals (BFR's) and PVC, discharging of pollutants into watercourses, origin of raw materials from illegal mines, lack of recyclability.
• How has apple tried to improve its environmental credentials?

  The 'Green my Apple' campaign; improved ranking in 'green electronics' from 11th to 6th place.
• Why has apple been motivated to make improvements?

  Driven by demand from consumers for ethical products.