Apple TNC 2

Question 1

In what year was Apple set up and what year did it take over macintosh?

Answer 1

Set up in 1976 and took over macintosh in 1982

Question 2

In 2014 what TNC rank was Apple in the world?

Answer 2

11th

Question 3

Why has Apple experienced rapid growth in the new millennium?

Answer 3

Due to its development of mobile and wifi devices

Question 4

Is Apple the worlds largest IT company by revenue?

Answer 4

No, it is second, only to Samsung

Question 5

How large is Apple in terms of global mobile phone manufacturers?

Answer 5

3rd largest

Question 6

Who is the worlds largest music retailer?

Answer 6

Apple

Question 7

Apple is the number one global brand by value, what is its value?

Answer 7

US$ 145 billion

Question 8

How many full time employees does Apple have?

Answer 8

98000

Question 9

How many retail stores does Apple have and across how many countries?

Answer 9

450 retail stores across 16 countries

Question 10

Why has Apple been so successful post 2000 (5 reasons)?

Answer 10

1. Stylish, well designed products
2. Slick marketing and branding- generating brand loyalty
3. Innovative products
4. Focus is on highly mobile devices, fitting the markets needs
5. Selling via the internet, ancillary products such as music and apps

Question 11

Apple’s market is primarily in developed countries, in 2011 how much of their sales came from the USA?

Answer 11

44%

Question 12

Over the past 5 years there has been rapid growth in demand from outside the USA for Apple products, specifically from where?

Answer 12

In the Asia-Pacific region, it is largely down to the global demand for the iPhone

Question 13

Where are Apple’s headquarters and R&D?

Answer 13

California

Question 14

Apple has 3 further data centres in the USA, two of which are in the same state, which state?

Answer 14

California

Question 15

In California, where is Apple’s R&D focused?

Answer 15

Silicon Valley- a good example of agglomeration, this is typical of high tech industries

Question 16

Where is Apple’s European headquarters and how many people does it employ?

Answer 16

Cork, Ireland it employs 4000 workers on iMac production lines and has a call centre there

Question 17

Which company has Apple outsourced assembly of its main products and where is this main production base?

Answer 17

The company is called Foxconn and its main production base is in Foxconn city, Shenzhen in Guangdong province, north of Hong Kong

Question 18

Describe the distribution of Apple stores

Answer 18

110 in Europe and the Middle East

25 in China (opened a new market to 600 million people) there are plans to open more in China

Question 19

What are the reasons for Apple basing its production in China?

Answer 19

1. Large of amount of high skilled, low pay labour, provides investment into China as well as jobs
2. Competition between mainly Taiwanese companies for Apple contracts, forcing down production costs
3. Shenzhen was the location of China’s first SEZs offering incentives to FDI

Question 20

Who else have bases in Foxconn city and what has it been dubbed?

Answer 20

Sony and Dell, it has been dubbed ‘China’s Silicon Valley’

Question 21

How many workers are employed in Foxconn city?

Answer 21

400,000

Question 22

What are wages like in Foxconn city?

Answer 22

US$ 150-200 per month (above the Chinese average and the Shenzhen average)

Question 23

Why was Apple lured to Ireland for its European headquarters?

Answer 23

The governments 12.5% corporation tax, the second lowest in the EU

Question 24

What are the positive impacts of Apples hq in Cork?

Answer 24

1. Employs 4000 workers directly (Cork’s largest private employer)
2. Their presence in Cork has generated a further 2500 jobs in the supply chain and in ancillary work
3. It has attracted other high-tech firms
4. Attracted a highly skilled workforce, provided inspiration for local education and R&D
5. It has expanded and contributed to infrastructural improvements in the city
6. It enhanced the ROI’s reputation for hosting TNCs, helping the ‘Celtic Tiger’s’ economy in the 1990s and 2000s

Question 25

What are the negative impacts from Apple having a headquarters in Cork?

Answer 25

1. Many skilled workers aren’t locals (mainly from the EU) so Apple is accused of not making enough jobs for local people

The counter argument to this is that it has made Cork a more vibrant city and that at least 60% of the workers are Irish (although most work on assembly lines)

Question 26

Describe Apple’s relationship with the taxes

Answer 26

It has been accused of tax avoidance. It can use subsidiary firms in other countries for a lower tax rate. In 2014 the US senate and EU commission both said Apple had received favourable tax treatment from the Irish government. Caused tension between USA and EU which both claimed that Apple owed the tax on their profits.

Question 27

Apple manufactures most of its products in China but how does it get most of its profit?

Answer 27

‘Intellectual property’, marketing, patenting and branding, which can be funnelled through subsidiaries

Question 28

What was reported about apple’s working conditions in China in 2006?

Answer 28

That 200000 workers worked and lived in the Shenzhen factory, working 60 hour weeks for $100 a month approx. Labelled ‘sweatshop’ conditions, affected Apple’s brand image

Question 29

What happened in 2010 relating to Apple’s health and safety in China?

Answer 29

50 workers at Lianjin Technology sued Apple after being poisoned by a toxic chemical used to clean iPad screens. In order to reduce costs there was not adequate ventilation

Question 30

Why has Apple come under fire about its student and child labour in China?

Answer 30

Foxconn’ use of students and children is part of its objective to maintain a low cost- flexible work force. Employees under 18 are subjected to the same working conditions as adults

Question 31

Why did Apple come under fire over suicides in its factories?

Answer 31

In 09/10 suicides brought significant damage to Apple’s reputation. In 2009 a Foxconn factory worker committed suicide after coming under pressure following the disappearance of an iPhone 4 prototype. By the end of 2010 there were 14 suicides, largely due to working conditions.

Question 32

What does Apple now have in an attempt to improve working conditions?

Answer 32

A supplier code of conduct and Apple audits its suppliers regularly

Question 33

What 4 main counts did Greenpeace criticise Apple on?

Answer 33

1. Its reliance on non-renewable resources to supply electricity to data centres
2. Use of toxic chemicals such as PVC in manufacturing processes
3. Factories in China producing dangerous levels of pollution such as toxic metals into local water supplies, endangering health
4. Lack of recyclability of many Apple products

Question 34

How has Apple responded to the accusations by Greenpeace?

Answer 34

They have launched their Green my Apple campaign.

Question 35

Describe the ‘Green my apple campaign’

Answer 35

Apple now uses 75% renewable energy and has invested in solar power for its data centres. It has removed PVC and other harmful chemicals from pollution and has promoted recycling its products.

Question 36

Where had Apple moved up to in the Green Electronics rankings?

Answer 36

From 11th in 2006 to 6th in 2012

Question 37

Is Apple’s globalisation positive or negative?

Answer 37

A mix of both