3.2.1.3 Apple case study

Apple company value

Highest valued company in 2023 worth $3 trillion

Location of Apple and where it makes its profits from

Located in California but agent of globalisation means 54% income foreign

Where is research/development located and why

Silicon valley for educated/skilled workers

Why do Apple not own manufacturing facciltiies

Use subcontracting model (Foxconn)

Where is assembly offshored to and how much assembly is foregin

China, Brazil, India (95% assembly in China). Vertical integration to allow premium prices

How many people work for Apple’s global supply chain

3 million people over 52 countries

Global supply chain features

Processors from Taiwan, Displays from South Korea, Camera/storage from Japan

Apple ‘lean operation’ features

Turnover in 2-5 days

Advanatges to America

High value employment, multiplier effect, Tax revenue

How many Americans work for Apple and what is their wage

80,000 $127,000

How many US distribution and app development jobs created

450,000 distribution jobs and 1.5 million developers

Costs for host countries

Labour exploitation (14 confirmed suicides in 2010 Foxconn, 50 worker posined in 2010), Tax avoidance, Environmental impacts (discharging pollutants, lack of recyclability), manufacturing suppliers only left with 1-2% profit margins

Benefits to host countries

5 million Chinese jobs, “250 billion investment in China, Investment into Chinese universities

Example of apple labour exploitation in 2006

60 hour week in 2006

Tax avoidance statistics

13 billion euro unpaid to Ireland

Environmental evaluation

Ranked poorly by Greenpeace for pollution/reliance on non renewable energy. Iphone 13 was 100% recycled gold, 100% renewable manufacturing supply chain by 2030q

Horizontal intergration

Apple bought out competitor ‘Beats’ to expand music ecosystem