WHAT:
● Apple Inc. was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne in
California. It began as a small computer company but is now an electronic juggernaut, selling
products such including the iPhone, iPad, MacBook, Apple Watch, and AirPods, as well as
software and services including Apple Music, iCloud, and the App Store.
● Today, Apple employs 164,000 people and operates over 500 retail stores across 27
countries, having become a TNC during the 1990s and 2000s, when globalisation allowed it to
offshore manufacturing to China to reduce production costs.
● It is worth over $3.5 trillion today and its success comes from its constant innovation,
extremely strong brand and tightly integrated ecosystem which means that many customers
buy a number of Apple products.
TIMELINE:
● Apple started business in 1976 manufacturing personal computers
● 1982 Apple took over Macintosh and launched AppleMac computers
● Since 2000 it has experienced phenomenal growth because of its development of mobile and
Wifi devices and its reputation for quality
● 2014 11th largest TNC globally 450 retail stores in 16 countries
● In 2015 Apple launched a new 'smartwatch' and Apple TV
● 2020 27d largest IT company, largest music retailer, number
● 1 global brand by value
As a global leader in supply chain management, Apple has a lean production system that makesm
the most of its spatial organisation. arranges for different components to be shipped directly
from their various original sources to the assembly complexes in China.
This reduces stockpiling and the number of warehouses to one centralised location in California.
This exceptional inventory management reduces costs and generates higher profitability
compared to its competitors.
Why has Apple been so successful?
● Stylish and well designed
● Slick marketing and branding = brand loyalty
● Innovative
● Focus in highly mobile devices meeting needs of the market profile (31 yr old)
● Selling via shops and internet, ancillary products
● Integrated ecosystem - Seamless integration of hardware (iPhone, Mac), software (iOS,
macOs), and services (App Store, iCloud, Apple Music, Apple Pay) makes it difficult and less
appealing for users to switch.
○ In 2011, 44% of product sales were in the USA and their average market profile
consists of young adults (average age is 31) who are wealthy (earning 26% more than
the national average) and educated (58% are graduates). However, over the past 5
years, the most rapid growth has been seen in the Asia‑Pacific region, largely due to
global demand for the iPhone.
EXPANDED:
Apple computers earned a growing reputation for quality and they attracted a growing niche
market of brand-loyal customers. Since 2000, it has experienced phenomenal growth as an
organisation because of its development of mobile and Wi-Fi devices. In 2019, Apple was the
world's:
● largest IT company by revenue
● third-largest mobile phone manufacturer
● number one global brand by value (US$234 billion). It has 137,000 full-time employees and
over 510 retail stores in 22 countries.
, ● In 2018, Apple became the world’s first trillion-dollar public company (The Guardian, August
2018). Apple’s stock market value is more than a third the size of the UK’s economy and is
larger than the economies of Turkey and Switzerland
● Finally, the products are sold online and in retailers including Apple stores, many of which are
located in wealthy high-income countries. In 2011, 44% of Apple’s sales were in the USA
SPATIAL ORGANISATION:
Some reasons for Apple's spatial organisation.
Apple headquarters
What: where the decisions are made and the research, development and design of the
¡Phone takes place
Where: Silicon Valley, California, USA
Why:
1. Similar companies are located nearby and knowledge can be shared (agglomeration
2. Education establishments are nearby to offer training to future employee
3. Good climate, quality of life attract the best workers
Assembly factory: Production
What: the components are
assembled (put together) in one of the world's largest factories, employing over a quarter of a
million employees. The assembly is outsourced to Foxconn
Where: Shenzen, China
Why:
1. Large source of highly skilled, hard working workers
2. Costs e.g. wages, are considerably lower than in Apple's home country, the USA
3. Nearby to the south is the huge port of Hong Kong to send the products world wide
4. A number of Taiwanese companies competed for the contract which forced down production
costs
5. Shenzhen offers incentives to attract foreign companies
CORE SEMI-PERIPEHERY
The highest value parts of Apple's production, Apple's manufacturing and assembly are
including R&D, marketing, finance and concentrated in China, Vietnam, and
design, are hosted in the U.S. with Apple's India, where labour costs are lower but
headquarters in California. technical capabilities are growing and
Apple benefits from the U.S. huge market of infrastructure is increasingly strong.
wealthy consumers and its ability to provide Through outsourcing and offshoring to
finance through the stock market and huge firms like Foxconn and Pegatron, Apple
banks such as J.P. Morgan. produces millions of devices annually.
Its European headquarters in Ireland, manages Foxconn's Shenzhen factory employs over
operations across the EU, benefiting from 200,000 workers, making it central to
skilled labour and low corporate taxes Apple's supply chain, though often
(12.5%) criticised for poor working conditions.
PERIPAERHCY TAKEOVERS/MERGES/ACIQUATIONS
At the bottom of Apple's supply chain are LICs Apple has consolidated its global
where many of the raw materials used in dominance through strategic
Apple's products originate. acquisitions, such as its acquisition of
Key minerals for batteries and circuit boards Beats Electronics in 2014 for $3 billion.
including cobalt, tungsten and tin are mined
● Apple Inc. was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne in
California. It began as a small computer company but is now an electronic juggernaut, selling
products such including the iPhone, iPad, MacBook, Apple Watch, and AirPods, as well as
software and services including Apple Music, iCloud, and the App Store.
● Today, Apple employs 164,000 people and operates over 500 retail stores across 27
countries, having become a TNC during the 1990s and 2000s, when globalisation allowed it to
offshore manufacturing to China to reduce production costs.
● It is worth over $3.5 trillion today and its success comes from its constant innovation,
extremely strong brand and tightly integrated ecosystem which means that many customers
buy a number of Apple products.
TIMELINE:
● Apple started business in 1976 manufacturing personal computers
● 1982 Apple took over Macintosh and launched AppleMac computers
● Since 2000 it has experienced phenomenal growth because of its development of mobile and
Wifi devices and its reputation for quality
● 2014 11th largest TNC globally 450 retail stores in 16 countries
● In 2015 Apple launched a new 'smartwatch' and Apple TV
● 2020 27d largest IT company, largest music retailer, number
● 1 global brand by value
As a global leader in supply chain management, Apple has a lean production system that makesm
the most of its spatial organisation. arranges for different components to be shipped directly
from their various original sources to the assembly complexes in China.
This reduces stockpiling and the number of warehouses to one centralised location in California.
This exceptional inventory management reduces costs and generates higher profitability
compared to its competitors.
Why has Apple been so successful?
● Stylish and well designed
● Slick marketing and branding = brand loyalty
● Innovative
● Focus in highly mobile devices meeting needs of the market profile (31 yr old)
● Selling via shops and internet, ancillary products
● Integrated ecosystem - Seamless integration of hardware (iPhone, Mac), software (iOS,
macOs), and services (App Store, iCloud, Apple Music, Apple Pay) makes it difficult and less
appealing for users to switch.
○ In 2011, 44% of product sales were in the USA and their average market profile
consists of young adults (average age is 31) who are wealthy (earning 26% more than
the national average) and educated (58% are graduates). However, over the past 5
years, the most rapid growth has been seen in the Asia‑Pacific region, largely due to
global demand for the iPhone.
EXPANDED:
Apple computers earned a growing reputation for quality and they attracted a growing niche
market of brand-loyal customers. Since 2000, it has experienced phenomenal growth as an
organisation because of its development of mobile and Wi-Fi devices. In 2019, Apple was the
world's:
● largest IT company by revenue
● third-largest mobile phone manufacturer
● number one global brand by value (US$234 billion). It has 137,000 full-time employees and
over 510 retail stores in 22 countries.
, ● In 2018, Apple became the world’s first trillion-dollar public company (The Guardian, August
2018). Apple’s stock market value is more than a third the size of the UK’s economy and is
larger than the economies of Turkey and Switzerland
● Finally, the products are sold online and in retailers including Apple stores, many of which are
located in wealthy high-income countries. In 2011, 44% of Apple’s sales were in the USA
SPATIAL ORGANISATION:
Some reasons for Apple's spatial organisation.
Apple headquarters
What: where the decisions are made and the research, development and design of the
¡Phone takes place
Where: Silicon Valley, California, USA
Why:
1. Similar companies are located nearby and knowledge can be shared (agglomeration
2. Education establishments are nearby to offer training to future employee
3. Good climate, quality of life attract the best workers
Assembly factory: Production
What: the components are
assembled (put together) in one of the world's largest factories, employing over a quarter of a
million employees. The assembly is outsourced to Foxconn
Where: Shenzen, China
Why:
1. Large source of highly skilled, hard working workers
2. Costs e.g. wages, are considerably lower than in Apple's home country, the USA
3. Nearby to the south is the huge port of Hong Kong to send the products world wide
4. A number of Taiwanese companies competed for the contract which forced down production
costs
5. Shenzhen offers incentives to attract foreign companies
CORE SEMI-PERIPEHERY
The highest value parts of Apple's production, Apple's manufacturing and assembly are
including R&D, marketing, finance and concentrated in China, Vietnam, and
design, are hosted in the U.S. with Apple's India, where labour costs are lower but
headquarters in California. technical capabilities are growing and
Apple benefits from the U.S. huge market of infrastructure is increasingly strong.
wealthy consumers and its ability to provide Through outsourcing and offshoring to
finance through the stock market and huge firms like Foxconn and Pegatron, Apple
banks such as J.P. Morgan. produces millions of devices annually.
Its European headquarters in Ireland, manages Foxconn's Shenzhen factory employs over
operations across the EU, benefiting from 200,000 workers, making it central to
skilled labour and low corporate taxes Apple's supply chain, though often
(12.5%) criticised for poor working conditions.
PERIPAERHCY TAKEOVERS/MERGES/ACIQUATIONS
At the bottom of Apple's supply chain are LICs Apple has consolidated its global
where many of the raw materials used in dominance through strategic
Apple's products originate. acquisitions, such as its acquisition of
Key minerals for batteries and circuit boards Beats Electronics in 2014 for $3 billion.
including cobalt, tungsten and tin are mined
