CHAPTER 1: OVERVIEW OF APPLE INC

1.1. Introduction to general information of Apple Inc

Apple Inc. (NASDAQ: AAPL, LSE: ACP) is an American multinational technology
company headquartered in Cupertino, California, USA. Apple is the world's leading
technology brand. But it also has to go through many ups and downs to reach a trillion
dollar value. It is also the world's third-largest mobile phone manufacturer after
Samsung and Huawei. (2019)
Apple was founded on April 1, 1976 as Apple Computer, Inc. and was renamed to
Apple Inc. at the beginning of 2007. Apple INC has 45 years of establishment.
Apple was founded by Steve Jobs, Steve Wozniak and Ronald Wayn.
Number of employees: 137,000 people (2019)
Number of locations: 511 retail stores (2020)

1.2. Fields of business activities

Apple INC specializes in the design, development and sale of consumer electronics,
computer software, and online services.
Apple's standout lines are still electronics. With famous global names such as IPhone,
IPad, Macbook, ...
CHAPTER 2: GLOBALIZATION AND ITS IMPACTS ON THE PICTURE OF
THE WORLD ECONOMY OF APPLE INC
2.1. The background of the US-China trade war leads to a change in world order.
Since 2018, the US-China trade tensions, the trend of protecting domestic
production ... have caused the flow of investment in the world to decline (over 10% in
2018 and 2019), at the same time there is a strong shift between regions and countries.
In that trend, ASEAN countries, including Vietnam, are emerging as potential
destinations, as a destination for the reallocation of investment capital flows,
especially the trend of capital flows from China. According to Nomura Group (2019),
from the beginning of 2018 to August 2019, 56 international enterprises have left
China to produce in other countries.
One of the big companies looking to pull out of China is Apple.
Apparently, Apple is looking to move some iPhone manufacturers out of China. The
current relationship between the US and China continues to deteriorate rapidly, and
the fact that Apple continues to manufacture iPhones in this country could pose great
risks. That is because there is always the possibility that the US Government will take
some action leading to Chinese retaliation.

2.2 Changing World Order:

2.2.1 Apple urges component manufacturers to leave China
China is no longer the most suitable and economical place to manufacture iPhones.
Besides, Apple itself also urged component manufacturers to leave, this action of
Apple also created a trend that has changed significantly in global FDI.
+ According to Nikkei Asian Reviews, Apple urged major supplier partners to
consider relocating 15-30% of iPhone production out of China. Meanwhile, Data
Electronics Inc. Apple specializes in supplying parts to Apple is also planning to buy a
branch in Thailand to expand production and reduce costs.
+ Wistron, one of the partners producing components for Apple, recently said it would
move 50% of production capacity out of China within 1 year.
+ Foxconn is planning to invest up to 1 billion USD in India to help Apple increase
production capacity of iPhone models. Because Foxconn factories in China have had
many fluctuations in recent year
=> No matter whether India, Southeast Asia or America, each place will have a
production ecosystem. Although China still plays an important role in Apple's
manufacturing empire in particular and the world manufacturing industry in general,
the days of China as the world factory are over.
=> This shows: China will no longer be the world's iPhone factory.

2.2.2. Affected countries when manufacturing enterprises leave:

Pros: Other countries not subject to tax have alternative sources of goods
- Vietnam: telephone components, automatic data processing machines
- Chile: copper ore
- Malaysia: electronic circuits, semiconductor equipment
Cons: Asian economies engage in intermediate trade between China and the US
-South Korea, Japan and Taiwan could suffer if the trade war with the US forces
China to change suppliers of semiconductors. Chinese companies each year import
about $ 200 billion of microchips, mostly from Korea, Japan and Taiwan, to
manufacture phones and electronic components.
2.3.Toward domestic in particular
2.3.1 Jobs and Income
Jobs:
By the end of 2018, Apple opened 51 retail stores in China. It also started 9
companies, 71 branches and provided over five million jobs for vendors.
Apple has so far created 3,500 jobs in India — and it plans to hire 1,500 more people.
In a blog post— analyst Gene Munster thinks the number of Apple stores will grow
from slightly over 500 now to 600 by 2023.
That growth will be due to expansion in China and India. Within five years, Munster
predicts Apple will employ 80,000 customer service employees in its retail
establishments. In 2020, Apple has 511 retail stores in 25 countries and an online store
available in 39 countries.
Income:
In less than a decade since Apple created the App store revolution, it has created more
than 1,500,000 jobs and earned more than $ 16 billion for US economy.
Apple directly contribute to the US economy about $55 billion in 2018 and will be
more than $350 billion over the next five years, not including Apple’s ongoing tax
payments, the tax revenues.
=> From the above statistics show, Apple's influence on the number of jobs is very
large. Since Apple has created a significant number of jobs, it is also Apple that
indirectly dominates the number of jobs for Apple component manufacturers.
But with Apple and its partners Apple, is gradually withdrawing from China, it will be
a big loss for this country in terms of jobs and the personal income. On the other hand,
it opens up job opportunities and improves income for the countries that Apple moves
to such as India, Thailand, Vietnam ...
2.3.2 Environment
According to the Financial Times, Chinese environmental organizations have charged
Apple’s component suppliers about pollution.
The report entitled "The Other Face of Apple: Spreading Pollution from Component
Suppliers" was posted on the website of the Chinese Institute of Environment and
Community. The report named 27 Apple component suppliers that have caused
pollution in China, "seriously threatening the safety and health of the people".
The report show that Apple need to be responsible for the widespread environmental
degradation, leading to health problems for Chinese citizens. The water of the Yangtze
River is now seriously polluted, and can not be used for any purpose since a factory
started discharging waste into the river.
Besides, the majority of Apple smartphone products also have a significant impact on
the environment with the amount of CO2 emitted during their life cycle. According to
Apple, about 80% of iPhone emissions come from the manufacturing process, and
about 15% from device usage.
=> This shows that in addition to the benefits and advantages that Apple and its
partners bring to the countries they will migrate to, these countries will also face some
environmental challenges. Therefore, in addition to Apple's self-improving products to
limit the environmental impact, governments of these countries also need to have
policies to limit the environmental problems.
CHAPTER 3: RECOMMENDATIONS AND SOLUTIONS
3.1 Job-income solution
 In term of Apple:
- After leaving China’s market, Apple should prepare a new recruitment in the
countries where it is going to invest, with the aim to reset the production
process as soon as possible.
- Because of the demand for the amount of labor, Apple have to come up with
appropriate policies to attract new employees.

 In term of the countries that Apple and its partners are about to move to:
- Countries need to improve the quality of training and education to build a
workforce with high professional and technical knowledge to meet the needs of
manufacturers.
- The government should apply the crucial policies for supporting Apple and its
partners. In addition, the government have to formulate policy that creates
opportunities for citizens to easily access new investors as a result of improving
employment and people's income.

3.2 Environmental solution

 In term of Apple and its partners:
- To use less inorganic materials, in order for Apple prove to users that they always
value environmental protection.
- Improving production lines, limit emissions and waste into the environment
- Manufacturing environmentally friendly products
- Creating a safe working environment, providing labor protective equipment to
protect the security of the workforce

 To the countries where Apple and its partners are about to invest:
- Make specific regulations and do strictly supervise for the manufacturer about the
wastewater treatment system
- Implement strict penalties in any circumstances the producers violate agreements
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