CS: Global Spacial Organisation + Operation of Apple (a TNC)

Question 1

What is spatial organisation?

Answer 1

• where diff. activities (e.g. research + dev., manufacturing, + markets) of a TNC are located

Question 2

Describe the spacial organisation of Apple.

Answer 2

• research + dev. occurs at main HQ, located in Cupertino, California, USA, + also in European HQs, based in Cork, Ireland
• manufacturing, is often outsourced to manufacturing companies in NICs (e.g. Foxconn, a Taiwanese electronics manufacturer, located in Shenzhen, China)
• consumer markets are primarily located in wealthy HICs (e.g. USA, which is the largest contributor to Apple’s sales, accounting for 44% in 2011), however are shifting towards emerging markets in NICs, like India + China

Question 3

Explain why Apple’s HQ is mainly located in Cupertino, + why it also has a European HQ in Cork, Ireland.

Answer 3

• bc Cupertino is located in middle of Silicon Valley (a global hub for technology innovation), so can easily collaborate w nearby tech giants (e.g. Google + Tesla)
• Silicon Valley also contains many highly regarded uni.s (e.g. Stanford University) so Apple can easily employ talented engineering + computer science graduates, which contribute to its skilled workforce for R+D
• has a European HQ strategically located in Cork, Ireland, to allow Apple access to its European market, bc Ireland is part of EU
• also it’s a highly suitable location for Apple’s HQ, bc it’s a HIC w excellent infrastructure + major transport networks (e.g. ports + airports), thus facilitating business operations + trade

Question 4

Explain why Apple’s manufacturing is often outsourced to companies like Foxconn, in NICs.

Answer 4

• bc it has cheaper labour costs (approx. £2.20/hr compared to £27.00/hr in USA), + large-scale operations, allowing Foxconn to produce devices at lower costs (enables cost savings for Apple)
• bc are located in countries w relaxed labour laws (so have fewer requirements for employee benefits), + envi. laws (so face fewer restrictions + can avoid fines, enabling elements, such as cobalt, which is used in batteries of Apple products, to be mined)

Question 5

Explain why Apple’s markets are mainly located in wealthy HICs + why they’re shifting towards emerging markets in NICs.

Answer 5

• bc Apple produces expensive, high-end electronics, consumers in HICs, bc have a high purchasing power, are better able to afford them + so offer greatest potential for sales
• however, bc dev countries are experiencing a rise in avg. incomes, markets are emerging in NICs, such as China, in which more of pop. are now able to buy phones, instead of only manufacture them
  
  • e.g. Apple’s sales in China have inc from 12% in 2010, to 19% in 2021, as Apple has become 1 of the top smartphone brands, w a market share of 18%

Question 6

Evaluation on spacial organisation of Apple.

Answer 6

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