Apple Inc., known as Apple, was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. The Company is headquartered in Cupertino, California. While Apple was initially made up of three individuals from California, it has grown into an influential and powerful company on earth. Its branches worldwide include major offices in Paris, France; Cork, Ireland; London, England; and Singapore. There is a misunderstanding about whether or not Apple is still an American company – as well as what makes a company American in the first place.
Facts About Apple’s History
Apple started in 1976 under the stewardship of Steve Jobs and Steve Wozniak. The Company was initially headquartered in Cupertino, California.
In 1980, the Company went public and became a household name with the release of its iconic Macintosh computer. Apple is among the most valuable companies in the world, with a market value of over $1 trillion. However, some have argued that Apple is no longer an American company.
Much of Apple’s manufacturing takes place in China, and the Company has been criticized for not doing more to support American jobs.
In 2016, Apple reported that only 36 percent of its workforce was American. For example, in 2010, Apple had 23% of its global workforce as American. Some believe this lack of growth reflects a shift from American labor to Chinese workers due to cheaper labor costs. Others argue that Apple has provided Americans with good-paying tech jobs and educates students on how to design products like the iPhone.
What Makes a Company American?
There are a few factors that make a company American;
- The first is where the Company is headquartered. For example, Apple is headquartered in Cupertino, California.
- The second factor is the Company’s primary research and development facilities. Most of Apple’s research and development takes place in the United States.
- The third factor is whether the Company manufactures its products in America. In recent years, Apple has outsourced most of its manufacturing to China. However, it still assembles some of its products, like the Mac Pro, in the United States.
- Finally, a company’s stock must be traded on a US stock exchange to be considered American.
Based on these criteria, Apple is still an American company!
How Much Does Apple Make from China Now?
In 2018, Apple generated $51.5 billion in revenue from Greater China, up from $45.8 billion in 2017. This accounted for 18 percent of the Company’s total revenue for the year. So while China is still a significant market for Apple, it’s no longer the only game in town. Greater China now accounts for a smaller portion of Apple’s overall business than it did just four years ago.
Is Apple American?
It’s a question asked a lot lately, and for a good reason. After all, the Company was founded by Steve Jobs and Steve Wozniak in California in 1976. While most of its products are still manufactured in China, the Company has a significant presence in the US, with corporate offices in Cupertino, California, and retail stores across the country.
So, is Apple still an American company? The answer is complicated. Considering how big a global corporation Apple has become, the answer becomes more difficult to determine. On the one hand, Apple employs about 45,000 people domestically, about 60% of which work at headquarters. On the other hand, it has 2.6 million employees worldwide.
In terms of revenue from outside North America, as opposed to revenue from inside North America, non-North American revenues make up 55% ($55 billion). In comparison, North American revenues only make up 30% ($30 billion).
It can be said that Apple may no longer be seen as an American company simply because it is not based in America anymore (it relocated to Ireland), but rather than being seen as international or global.
In January 2007, Apple announced its new headquarters would be in Cupertino, California. The Cupertino headquarters is a massive, donut-shaped building that can accommodate 12,000 employees. Although the building is impressive, it’s not the only thing that makes Apple’s headquarters special. The campus also features a 100,000-square-foot fitness center, a two-story cafeteria, and an on-site medical center.
Joint innovation Center in Shenzhen, China
Apple has established a more substantial presence in China. They now have a joint innovation center in Shenzhen, which is the first of its kind in the country. The move signals a shift in focus for the Company and raises the question: is Apple still an American company?
While they may be headquartered in Cupertino, California, it’s clear that their heart is now in China. Sometimes back, they announced plans to build another research and development facility in Shanghai, set to open later. While most people are aware of the Chinese factory where third-party contractors assemble iPhones, many don’t know that all of their products-from battery chargers to speakers, are made by Chinese manufacturers. These manufacturing partners include Tencent Holdings Ltd., Quanta Computer Inc., Foxconn Technology Group, and others. So how does Apple rank among other US-based companies in manufacturing?
Developing iOS Apps in China
Apple has faced criticism for outsourcing manufacturing to China. Some questioned whether or not the Company is still an American company. While it’s true that most of Apple’s products are now assembled in China, the Company does stamp a strong presence in the United States. Nearly 80% of its research and development budget is spent here.
Retail Stores in China
Apple has come under fire for its manufacturing and business practices in China. Although the Company is headquartered in the United States, most of its manufacturing is in China.
This has led to concerns about the working conditions in Chinese factories and whether Apple is taking advantage of workers. In addition, the Company has been criticized for not paying enough taxes in the US. As a result of these controversies, some people have questioned whether or not Apple is still an American company.
Contract Manufacturers in China
As labor and production costs have skyrocketed in China, Apple has increasingly relied on contract manufacturers in various countries, such as Taiwan and South Korea. A majority of the iPhone’s components are now manufactured outside of China.
However, the final assembly of the iPhone still takes place in Chinese factories. For example, when Foxconn acquired Hon Hai Precision Industry Co., Ltd., which assembles iPhones for Apple, it pledged to invest $10 billion in China over three years. The Company plans to add 10 new facilities by 2020, each absorbing 100,000 to 150,000 workers annually. As it stands now, all iPhones sold by the Company worldwide are assembled exclusively in mainland China.
Other Investments in China
Apple has made several other investments in China. In 2017, they announced a $1 billion acquisition of Didi Chuxing, a Chinese ride-hailing service. In 2018, they announced a $300 million investment in Chinese data center company Guizhou Cloud Big Data Industry. But despite these investments, many experts still question whether or not Apple is still an American company.
Whenever you look at the numbers, it’s hard to deny that Apple is still an American company. The majority of their revenue and profit comes from the United States. They also employ more people in the US than in any other country. However, when you consider their manufacturing and supply chain, it’s clear that they are increasingly globalized. While Apple may be headquartered in Cupertino, California, they are a global company.
Reference 1: https://en.wikipedia.org/wiki/Apple_Inc.