Apple Case Study

What is Apple?

Apple is a US transnational electronic technology corporation.

Where are Apple's company headquarters?

Cupertino, California.

Is Apple the largest mobile phone producer?

Apple is the third largest mobile phone producer.

Give some global facts about Apple.

• Second largest IT company by revenue

• Third largest mobile phone producer

• Largest music retailer (through iTunes)

• Number one global brand by value ($145 billion)

• 11th largest TNC globally in 2014

How many stores and how many employees do Apple have worldwide?

98,000 full time employees and over 450 retail stores in sixteen countries.

What are some reasons for Apple's success?

• Stylish and well-designed products

• Good marketing and branding which helps create brand loyalty

• Innovative products

• Selling online products such as music and apps

• Focused on highly mobile devices, which fits people's needs

Where is Apple's market located?

Predominantly in richer, developed countries. In 2011, 44% of product sales were in the USA.

What are some characteristics of Apple's average market profile?

31 years old, wealthy and educated who are prepared to pay a premium price for their products.

Where have Apple experienced most growth recently?

Its most rapid growth has been in the Asia-Pacific region mostly due to global demand for the iPhone.

Where does the assembly of Apple's main products take place?

Assembly of Apple's main products is outsourced to a Taiwanese company in mainland China.

Why do Apple choose to produce their mainstream products in China?

• Large number of highly skilled, hard working but low paid workers. It benefits China as it provides investment and generates jobs

• A number of companies (mostly Taiwanese) competed for the Apple manufacturing contract which lowered production costs

• Shenzen was the location of China's first Special Economic Zone which meant a number of incentives to attract foreign companies

What are the average wages per month of people working in the Foxconn City Business park where Apple products are manufactured?

Between $150 and $200 per month...

What are some positive impacts of Apple's investment in Ireland?

• Employs 4,000 workers - Cork's largest employer

• Has attracted other high-tech firms to the area

• Attracted a highly skilled workforce and provided inspiration for local education, research and development

• Apple have contributed to infrastructural improvements in the city

What are some negative impacts of Apple's investment in Ireland?

Many of the highly skilled workers are foreign nationals so Apple is accused of not creating sufficient work for local people.

Issues with working conditions in China for Apple?

It was reported that 200,000 workers who lived and worked in Apple's Shenzen factory were working for more than 60 hours a week for around $100 a month. It was described as 'sweatshop conditions'.

Issues with Health and Safety in China for Apple?

In 2010, 50 workers in China were poisoned by a toxic chemical used to clean iPad screens and decided to sue Apple.

Issues with Student and child labour in China for Apple?

Foxconn's (Apple's manufacturing company) use of students and children is part of maintaining a low-cost and flexible labour force. Employees under 18 are subject to the same working conditions as adults but less pay.

Issues with Suicides in China for Apple?

In 2009, a factory worker committed suicide after coming under pressure after the disappearance of an iPhone 4 model. After 2010, a total of 14 suicides has occurred, mostly as a consequence of the severe working conditions.

What are some environmental issues for Apple?

Apple was criticised for its reliance on non-renewable resources to supply electricity to its data centres, its use of toxic chemicals in their manufacturing process, factories in China discharging pollutants and metals into local water supplies and the lack of recyclability of many Apple products.

How did Apple respond to environmental sustainability complaints from Greenpeace?

Apple launched its Green My Apple campaign. They now use 75% renewable energy, invests in large solar farms and decided to remove toxic chemicals and PVC plastics from its products to promote recycling of its products.