Apple Case Study

Question 1

Give some figures of Apple

Answer 1

• Largest IT company by revenue.
• 3rd largest mobile phone producer.
• Biggest global brand by value ($234 billion).
• 137,000 full time employees in HDEs.
• 511 retail stores in 22 countries.

Question 2

Give some facts about Apple

Answer 2

• Main products designed in Silicon Valley (an agglomeration).
• HQ in Apple Park, California.
• European HQ in Cork, Ireland.
• Products outsourced to Foxconn and Pegatron (Taiwanese companies in China).
• Some assembly in Texas due to high technical nature of mobile phones.

Question 3

What did Apple have a good reputation for?

Answer 3

High Quality Devices in the 2000s.

Question 4

Where does Apple mainly focus its marketing?

Answer 4

HDE’s and its origin country, the USA.
More political incentives to focus in USA after trade wars with China.

Question 5

What are the positive social impacts on the Apple’s host country?

Answer 5

• 6,000 people employed in Ireland.
• Attracted greater cultural diversity in Ireland, whilst still having 60% of the workers being Irish.
• Apple has expanded and contributed to infrastructure in Cork, Ireland.

Question 6

What are the positive economic impacts on Apple’s host country?

Answer 6

• Presence of Apple in Ireland has attracted other tech companies, triggering the multiplier effect.
• Highly skilled workforce attracted to Ireland.
• 1.3 million people have relocated to business parks in Shenzhen, a low tax area in China.

Question 7

What are the positive environmental impacts on Apple’s host country?

Answer 7

Green My Apple Campaign:
- 100% renewable energy in USA facilities.
- PVC chemicals removed from products.
- Recycling of products encouraged.
- Greenpeace’s Green Electronics list - 2nd in 2017.

Question 8

What has America done to support Apple?

Answer 8

Apple has fallen into line with USA’s administration to start domestic marketing.

Question 9

What are the negative social impacts on Apple’s host country?

Answer 9

• Workers at Foxconn sites often subjected to poor living conditions in dormitories on very low wages.
• Workers typically have a 62 hour working week and get paid $300 a month, half of which is spent on living costs.

Question 10

What are the negative economic impacts on Apple’s host country?

Answer 10

• Apple paid $13 billion of unpaid taxes in 2014 after it was discovered Ireland was giving them favourable treatment.
• Student and child labour laws breached in 2017 at Foxconn. China allows child labour, Apple does not.
• Apple criticised for not creating enough local jobs in Cork and Ireland in general.

Question 11

What are the negative environmental impacts on Apple’s host country?

Answer 11

• Apple criticised by Greenpeace in the early 2000s.
• Workers in Foxconn factories often exposed to toxic chemicals without safety equipment.