TNC- Apple

headquarters in Cupertino, Northern California

produces high-tech products under its universal 'i' brand which includes iphones, ipods and ipads

  • world's second largest IT company by revenue (after samsung)
  • third-largest mobile phone manufacturer
  • largest music retailer

has 98,000 full-time employees and over 450 retail stores in 16 countries

market is mainly richer, developed countries- 2011, 44% of sales were in the USA

designed in Silicon Valley, California and made in mainland China by Foxconn (Taiwan-based company)

European Headquarters is in Cork, Ireland

110 stored are in Europe and the Middle East and 25 are in China

Produced in China because

  • large source of highly skilled, hard working and low paid workers
  • creates investment into China and generates jobs
  • a number of Taiwanese companies fought for apple which lowered production costs
  • Shenzen where it was originally located offered a number of incentives

Impacts

In Ireland it employs 4,000 workers directly on imac production line and the call centre which is Cork's largest private employer

employs a further 2,500 as part of supply chain

However, many of the skilled workers are foreign nationals so Apple is accused of not creating sufficient work for local people

corporate tax avoidance- using subsidiary firms in other countries to declare profits and pay a lower rate of tax

China

Working conditions- In 2006, 200,000 workers were regularly working more than 60 hours a week for around $100 a month under 'sweatshop conditions'

Health and Safety- In 2010, fifty workers were poisoned by a toxic chemical used to clean ipad screens and sued apple as ventilation had not been installed

Student and Child Labour- Foxconn use them as a way of maintaining low-costs

Suicides- 10 suicides in 2009 caused damage to the reputation

Environmental

non-renewable materials to supply electricity to it's data centers

factories in China discharging pollutants and toxic metals into local water supplies