Apple Flashcards
Details
Headerquarters-Apple park california
Started in 1976-personal computer manufacfure
2019-Number one global brand by value (US$234 billion)
137,000 full-time employees and over 510 retail stores in 22 countries
Spatial Organisation and Linkages
• Main product design in Silicon Valley, California
• Manufacture in mainland China by Foxconn
Ireland cork
• Sold all over the world
Apple expansion in US
Apple expansion in the US
• MacPro assembly faculty employing 6,000 in Austin, Texas (with plans to expand to 10,000)
• 5 data centres – 2 in California, 2 more in the west: Oregan and Nevada, and 1 on the eastern seaboard at North Carolina
Why China?
Able to outsource production to companies such as Foxconn who competed for Apple’s manufacturing contract on the basis of low production costs.
• There is a large, young, skill and non-unionised workforce who will work long hours for relatively low wages
• Shenzhen was the location of China’s first Special Economic Zone (SEZ) offering a number of incentives to attract foreign companies
Impacts for Ireland
• It employs 6,000 workers in Cork – their largest private employer
• Global recognition of Cork is increasing due to their reputation as Apple’s logistics hub
(organising shipping of products to over 50 countries)
• 3,000 jobs created in ancillary work
• Apple’s presence has attracted other large high-tech firms
• It has attracted a highly skilled work force and inspired local education, research and
development
Tax practices
In 2016 the EU ordered Apple to pay 13 billion Euros in unpaid taxes between 2004 and 2014.
Negatives for China
Foxconn’s Labour Practices:
• Working Conditions –
o Foxconn factories are high security, most workers live on site, there are dormitories, shops and cafes
o Most are young migrant workers from around China
o Average working week is 62 hours
o Wage $300 per month – half of which is used on living expenses on site
o Media reports suggest these problems persist despite Apple attempting reforms
• Health and Safety -
o Factory workers have been exposed to toxic chemicals used to clean the products
o Reports suggest earplugs and goggles are not always available to those operating heavy machinery
• Student and child labour: -
Apples environmental
Apple now uses 100% renewable energy in its US facilities and has established its own energy company, Apple Energy, generating electricity from mainly solar power
• They have removed PVC plastics and toxic chemicals from its products
• They promote recycling of its products although ‘repairability’ is still an issue
• In 2016 Apple issued a $1.5billion green climate bond; proceeds are used to finance
