Apple Flashcards
What are benefits for the host country ?
-500 stores in 22 countries
-Foxconn (Taiwanese company) employ 2.5 million globally
-Wifi and microchips supplied by 20 different countries
Is apple horizontally or vertically integrated ?
Horizontally
Means that they do not make every part of their products - don’t have full control over the supply chain
Where are the majority of Apple’s suppliers ?
Asia
Perhaps an over reliance
Facts about Apple
-The worlds largest ICT company by value and number one brand worth 1 trillion dollars in 2023
-Third largest mobile phone manufacturer
-Approximately 137,000 full time employees (majority of workforce is global)
Explain Apple in relation with USA
-90,000 employees
-HQ and R&D in Apple Park, Cupertino California
- Further campus planned employing 6000 and plans to expand to 10,000
-5 data centres
-A further centre is planned at Wake, lowa in the centre of USA
Explain relations of Apple and Ireland
-Cork is the European, Middle Eastern and African HQ
-Employs 6000
-A global transport and logistics hub (organises worldwide shipments)
Explain worldwide relations with Apple
-Over 500 retail stores in 22 countries(half in USA)
-Until 2023, most products made in China by Foxconn (Taiwanese company) employing 2.5 million globally
-Wifi and microchips supplied from over 20 different countries
-In 2023 Apple shifted production away from China and towards India
Explain Apple’s production and links around the world
-Outsources Foxconn due to low production costs. Large, young, skilled non-unionised population - long hours for low pay. (less employment and environmental regs)
-Shenzen îs China’s first and successful special economic zone (SEZ)
-Apple arranges for different components to be shipped from worldwide to china. (reduces stockpiles and number of warehouses needed)
Explain Apple’s trading and marketing
-45% sales in USA. China is now one of the biggest markets, Europe second
-Apple services play a huge role in their business
-Apple caught in a trade war between USA and China having to pay to import its own products from China into USA
-Apple is moving manufacturing back to USA and pledged to create another 20,000 jobs and $5 billion to support American business
-2023 manufacturing started in India and trying to promote products there
-Sales in China strong but Chinese competitor Hauwei eating into market
Positive impacts on Ireland
-Employ 6000 - Corks largest employer
-As EU logistics hub, enhances Ireland global reputation - shipping products to 50 untried
-Extra 3000 ancillary jobs created
-Attraced other high-tech firms and high skilled workers, local research and education
-Contributed to infrastructure
-Made Cork multicultural and cosmopolitan
Negative impacts on Ireland
-40% of workforce not Irish
-Many high skilled workers are foreign nationals from EU
-Lower tax in Ireland means Apple is accused of not paying enough tax in countries art sells its products and tension between EU and USA. (2016 EU concluded Apple had received illegal state aid and ordered Apple to pay 13 billion euro fine in unpaid taxes)
-Staff have to be multilingual
Positive impacts on China
-Foxconn employs 1.3 million people and claims to support a further 5 million
-Workers at Foxconn city live on site in dormitories. Work 62 hour weeks for $3000 a month.
-Apple now demands to limit student interns to only 10% of workforce and has introduced a supplier code of conduct and adult suppliers factories regularly
Negative impacts of Apple on China
-Half of the $3000 is taken by Foxconn for living expenses - Foxconn accused of poor working practices and there have been protests
-Accusations that workers are exposed to toxic chemicals, lack of safety equipment in some factories
-In 2017, student interns were found working excessive hours including school students to make apple watches
What are the environmental impacts of Apple ?
-Greenpeace criticised apple in 2000’s, as a result they created a ‘green my apple’ campaign lead to :
-100% renewable energy in the USA and created apple energy from solar pannels
-Removed all PVC plastics and toxic chemicals from products
-Promotes recycling of its products (lack of repairability contradicts)
-Now ranked 2nd in Greenpeace’s ‘green electronics’ rankings
