apple case study

Question 1

Apple

Answer 1

• Producer and retailer of computer technology and mobile devices
  
  • California, USA = headquarters
  • High tech products and services
  • Started in 1976
  • Growing reputation in quality - attract niche market
  • Since 2000 it has had a experienced phenomenal growth because of development of internet and WiFi
  • In 2019 it was the largest IT company by revenue, third largest mobile phone manufacture, number one global brand by value $234 billion
  • 137,000 - full time employees
  • 510 retail companies in 22 countries

Question 2

Success is from

Answer 2

• Stylish and well designed products
  
  • Slick market and branding - brand loyalty from costumers
  • Products updated regularly
  • Fit the markets needs
  • Diversification into new technology and platforms as they evolve

Question 3

Spatial organizations and linkages

Answer 3

• WiFi chips from America, Europe and Asia
  
  • Manufacturing - employed other countries 2.5million
  • Other campus 6000 people, Texas
  • Global campuses and research in USA, Ireland, Asia, china,
  • Apple employed 90,000 people in all 50 states of America
  • Agglomeration - high tech industries where info exchange and access well qualified and expert staff
  • European, middle eastern and African headquarters - 6000 employees
  • Outsourced - products to partner companies - Hong Kong longest running partner
  • 511 retail stores - over half in USA, 115 in Europe and Middle East and 42 in china

Question 4

Production linkages

Answer 4

• Outsource production because of low production costs
  
  • Work long hours and low wages
  • Special economic zone SEZ - invectives to attract international companies
  • A global leader in supply chain management for spatial organisation
  • Arranges for components to be shipped directly for assembly of products in china
  • Reduces stock pilling in California in warehouses
  • Investors management reduces costs and generation higher profitability compared to competitors
  • Since 2018 - expanded production,

Question 5

Impacts on countries in which it -operates

Answer 5

• Controversial claims about its business operations
  
  • Impacts countries where operated
  • Reflects general criticisms at TNCs

Question 6

Ireland
-

Answer 6

• European HQ, cork
  
  • 1980
  • 12.5 percent corporation tax
  • 6000 workers
  • 100 logistics team
  • Ships to over 50 countries
  • Inspiration for local education, research and development
  • Infrastructural movements in the city
  • 90 nationalities working here

Question 7

Tax practices

Answer 7

• Subsidiary firms declare profits
  
  • Pay a lower rate of tax
  • Tension between USA and EU as each claimed apple owed them tax on their profits
  • £13 billion in unpaid taxes for 2004 - 2014
  • Accommodate large TNCs such as apple
  • China manufactures most of products
  • Majority of profit is intellectual property

Question 8

China

Answer 8

• 1.3million employees
  
  • 5 million jobs in country
  • Supply other high tech firms

Labour conditions
- Live on site
- 62 hours a week
- 300 dollars per month
- Poor working conditions

Health and safety
- Toxic chemicals
Student and child labour

- Student found working in 2017 against the policy’s they weren’t allowed too 
- China employees allowed to if clarified as interns or trainees
- Apple against it because of there social responsibility 

Environmental issues
- 100% renewable energy
- Own companies energy
- Generated form solar power
- Removed all PVC plastics ad toxic chemicals
- Promotes recycling
- $1.5 billion green climate bond

Question 9

Trading and marketing

Answer 9

• 45% of. Sales in 2019 were from USA
  
  • China second largest sales
  • Service revenue - 13.5billion in 2013 to 50 billion in 2020