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Geography A2* > Apple TNC 2 > Flashcards

Apple TNC 2 Flashcards

1
Q

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

A

Set up in 1976 and took over macintosh in 1982

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2
Q

In 2014 what TNC rank was Apple in the world?

A

11th

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3
Q

Why has Apple experienced rapid growth in the new millennium?

A

Due to its development of mobile and wifi devices

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4
Q

Is Apple the worlds largest IT company by revenue?

A

No, it is second, only to Samsung

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5
Q

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

A

3rd largest

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6
Q

Who is the worlds largest music retailer?

A

Apple

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7
Q

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

A

US$ 145 billion

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8
Q

How many full time employees does Apple have?

A

98000

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9
Q

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

A

450 retail stores across 16 countries

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10
Q

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

A
  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
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11
Q

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

A

44%

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12
Q

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

A

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

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13
Q

Where are Apple’s headquarters and R&D?

A

California

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14
Q

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

A

California

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15
Q

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

A

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

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16
Q

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

A

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

17
Q

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

A

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

18
Q

Describe the distribution of Apple stores

A

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

19
Q

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

A
  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
20
Q

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

A

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

21
Q

How many workers are employed in Foxconn city?

A

400,000

22
Q

What are wages like in Foxconn city?

A

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

23
Q

Why was Apple lured to Ireland for its European headquarters?

A

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

24
Q

What are the positive impacts of Apples hq in Cork?

A
  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
25
Q

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

A
  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)

26
Q

Describe Apple’s relationship with the taxes

A

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.

27
Q

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

A

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

28
Q

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

A

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

29
Q

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

A

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

30
Q

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

A

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

31
Q

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

A

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.

32
Q

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

A

A supplier code of conduct and Apple audits its suppliers regularly

33
Q

What 4 main counts did Greenpeace criticise Apple on?

A
  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
34
Q

How has Apple responded to the accusations by Greenpeace?

A

They have launched their Green my Apple campaign.

35
Q

Describe the ‘Green my apple campaign’

A

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.

36
Q

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

A

From 11th in 2006 to 6th in 2012

37
Q

Is Apple’s globalisation positive or negative?

A

A mix of both

Geography A2* (38 decks)

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