Apple (specified TNC)

What does apple produce

A range of familiar high technology products and services

Describe and explain the growth of apple

3rd largest phone manufacturer

No. 1 global brand by value ($234 billion)

Largest IT company by revenue

137000 full time employees

510 retail stores in 22 countries

Why has apple been so successful

• Stylish well designed products

• Slick marketing and branding

• Innovated and updated products

• Mobile devices fitting user needs

• Ancillary products and services

• Diversification into new technologies

Apple’s spatial organisation in USA

• Designed in Silicon Valley, CA

• Shares owned in USA

• Repatriates profit from global operations

Apple’s spatial organisation in Ireland

• Apple HQ for Europe in Cork, Ireland

• Apple’s 2nd largest market

Apple’s spatial organisation in China

• Mineral production- environmental impacts

• 80-85% rare earth metals

• 2 recycling machines

• Assembly of apple’s main products- factories

Apple’s spatial organisation in the rest of the world

• Mineral production

• New companies emerge providing service to apple

• Apple paid $13m in tax on $3.5b UK profits

• Low tax than domestic competitors- unfair advantage

USA (Apple’s Base)

• All profits go to USA

• HQ has R&D- highly skilled workforce

• 90,000 employees in all 50 states

• 6000 employed at Mac Pro assembly in Austin, TX

• Data centres across USA

• Pays US Tax and created $2b earnings

• High value work

• Over a half of retail stores in USA out of 511 total stores

Overseas retail markets (Apple’s Host)

• 2019→ 45% of sales= USA

• Trade blocs- low tax incentive→ 2nd lowest in EU

China (Apple’s Host) (Positives)

• 1.3 million employees tight secure employment

• FDI drives up productivity→ exporting trade benefits

China (Apple’s Host) (negatives)

• Bad working conditions

  • $300 per month

  • ½ on living expenses

  • 62 hours a week

• Exposed to toxic chemicals

• Child labour

• Import tax on all products

Ireland (Apple’s Host) (positive)

• 6000 workers on iMac production at hollyville

• 3000 ancillary work- highly skilled

• Apple contributed to infrastructure improvements for the city of Cork

• Low tax incentive

Ireland (Apple’s Host) (negative)

• Migrants take jobs- other EU citizens e.g. 700 french and 460 German

• Import tax

• Irish gov favoured treatment on teas in turn Apple investment

Greenpeace

Removed PVC plastics and toxic chemicals

$1.5 billion green climate bond

Promotes recycling but hard to repair products and replace components- promotes waste