1990–1997: Decline and Restructuring

Strategic Shifts and Early Success

In October 1990, Apple introduced three lower-cost models—the Macintosh Classic, Macintosh LC, and Macintosh IIsi—to address pent-up consumer demand. These models were well-received, and in 1991, Apple launched the PowerBook, which established the standard design for modern laptops. That same year, the company released System 7, a major Macintosh operating system update that added color and new networking capabilities.

The period between 1989 and 1991 was referred to as the Macintosh's "first golden age" by MacAddict magazine, as Apple experienced rising revenues and significant product innovation. However, the popularity of lower-cost models like the LC began to cannibalize sales of higher-priced systems.

To differentiate its offerings, Apple introduced distinct product lines: the high-end Quadra, mid-range Centris, and consumer-focused Performa. This strategy, however, led to consumer confusion due to the large number of similar models.

Product Challenges and Decline

In 1993, Apple discontinued the Apple II series, which had become expensive to produce and was diverting resources from the Macintosh line. During the 1990s, Apple launched several consumer-oriented products that failed to gain traction, including QuickTake digital cameras, the PowerCD, the Pippin gaming console, and the Newton tablet. The Newton division, based on overly optimistic market forecasts, consumed significant resources without yielding expected returns.

Microsoft gained market dominance during this time with its Windows operating system, which was delivered on inexpensive personal computers. Apple, with its premium pricing and high-margin strategy, struggled to respond effectively. A long-running lawsuit against Microsoft over the graphical user interface in Windows (Apple Computer, Inc. v. Microsoft Corp.) ended in dismissal, further damaging Apple's reputation.

In 1993, CEO John Sculley was replaced by Michael Spindler, who sought to revitalize the company. Under Spindler, Apple partnered with IBM and Motorola in the AIM alliance, leading to the 1994 introduction of the Power Macintosh series with PowerPC processors. However, the alliance's broader goals to counter Windows dominance were not realized.

Apple also experimented with licensing its software to third-party Macintosh clones, leading to the release of 75 different clone models. By 1996, concerns grew that these clones were cannibalizing Apple's own high-end computer sales.

Restructuring Efforts and NeXT Acquisition

In 1996, Spindler was replaced by Gil Amelio, who implemented extensive cost-cutting measures and layoffs. The company faced repeated failures to modernize its operating system, with projects like Pink, Copland, and the evaluation of BeOS all falling short. Facing bankruptcy, Apple acquired NeXT in late 1996 for $400 million, bringing Steve Jobs back to the company.

1997–2007: Return to Profitability

Steve Jobs’ Return and Strategic Overhaul

Following the NeXT acquisition, Jobs returned as an advisor and quickly staged a boardroom coup. In July 1997, Jobs replaced Amelio as interim CEO. He streamlined the product lineup, canceling 70% of models, cutting 3,000 jobs, and focusing on core offerings.

In August 1997, Jobs secured a $150 million investment from Microsoft, alongside a commitment to continued Mac software development. This move provided Apple with much-needed financial stability. Jobs also terminated clone agreements and focused on direct sales, launching the Apple Store website in November 1997 with a build-to-order manufacturing model.

Product Innovation and Growth

In 1998, Apple released the iMac, a bold, all-in-one computer designed by Jonathan Ive. Featuring a teardrop shape, translucent materials, and internet-ready capabilities, the iMac was a massive success, selling 800,000 units within its first five months.

Apple's streamlined product strategy included the professional Power Macintosh G3 desktop and PowerBook G3 laptop, as well as the consumer-focused iMac and iBook. This approach allowed for greater focus on quality and innovation.

Apple expanded into digital media with acquisitions such as Macromedia's Key Grip project (Final Cut Pro), Astarte (iDVD), and SoundJam MP (iTunes). In 2001, Apple introduced Mac OS X, based on NeXTSTEP and Unix, combining stability with user-friendliness.

Retail and the iPod Revolution

In 2001, Apple opened its first two retail stores, which proved highly successful, and introduced the iPod, a portable digital music player. The iPod revolutionized the music industry, selling over 100 million units within six years. The 2003 launch of the iTunes Store established Apple as a leader in legal digital music downloads.

Transition to Intel and Sustained Success

In 2006, Apple transitioned its entire Mac lineup to Intel processors, introducing models like the MacBook Pro and Mac Pro. By 2007, Apple’s stock price had soared, reflecting its resurgence as a market leader. This era laid the groundwork for Apple's next transformative phase.

2007–2011: Success with Mobile Devices

At the 2007 Macworld Expo on January 9, Steve Jobs announced the renaming of Apple Computer, Inc. to Apple Inc., reflecting the company’s expansion beyond computers to consumer electronics. During the keynote, Jobs introduced the first-generation iPhone and Apple TV. The iPhone, dubbed a "game changer for the industry," sold 270,000 units within its first 30 hours of availability.

In February 2007, Jobs proposed selling DRM-free music on the iTunes Store, a move realized later that year when EMI agreed to remove DRM from its catalog. By 2009, all songs on the iTunes Store were DRM-free.

The App Store launched in July 2008, offering third-party applications for the iPhone and iPod Touch. Within its first month, the store sold 60 million applications and generated $1 million in daily revenue. By October 2008, Apple became the world’s third-largest mobile handset supplier due to the iPhone’s popularity.

In 2009, Steve Jobs took a six-month medical leave, leaving Tim Cook to manage day-to-day operations. Despite his absence, Apple achieved record revenues during the recession, reporting $8.16 billion in revenue for Q1 2009.

Apple introduced the iPad on January 27, 2010, which shared the iPhone’s touch-based operating system. Released on April 3, 2010, the iPad sold over 300,000 units on its first day. That same year, Apple’s market capitalization surpassed Microsoft’s for the first time since 1989.

The iPhone 4, launched in June 2010, introduced features like FaceTime and multitasking. Apple also refreshed its iPod lineup, released the second-generation Apple TV, and continued to dominate the consumer electronics market.

In January 2011, Jobs announced another medical leave, with Tim Cook assuming operational control. During Jobs's absence, Apple launched iCloud in June 2011, a cloud-based service for syncing and storage. On August 24, 2011, Jobs resigned as CEO and was succeeded by Cook. Jobs remained involved as chairman until his death on October 5, 2011.

2011–Present: Post-Jobs Era

Early Years Under Tim Cook

Apple’s first major announcement post-Jobs was iBooks Textbooks and iBooks Author, introduced in January 2012. In subsequent years, Apple launched new products, including the iPhone 4S, iPhone 5, third- and fourth-generation iPads, and the iPad Mini. These launches saw significant commercial success, with the iPhone 5 breaking pre-order records and the iPad Mini selling three million units in three days.

In August 2012, Apple’s market capitalization reached $624 billion, breaking records. The company also won a $1.05 billion judgment against Samsung in a patent lawsuit, though the award was later reduced. That year, Apple settled a global patent dispute with HTC.

Major Acquisitions and Expanding Product Lines

In May 2014, Apple acquired Beats Electronics for $3 billion, marking its largest acquisition. The deal included the "Beats by Dr. Dre" product line and the Beats Music streaming service.

Apple introduced the Apple Watch in September 2014, initially marketing it as a fashion accessory. Over time, the focus shifted toward health and fitness features. By 2016, over one billion Apple devices were in active use worldwide.

Continued Innovation

In 2017, Apple introduced the HomePod smart speaker and acquired Shazam for $400 million to bolster its Apple Music service. The company also began producing original content, signing deals with Oprah Winfrey, Jennifer Aniston, Reese Witherspoon, and Steven Spielberg.

Apple unveiled its custom-designed M1 chip in November 2020, transitioning from Intel processors in its Mac lineup. The M1 chip significantly boosted performance and inspired other tech companies to follow a similar path.

Recent Developments

In 2022, Apple introduced new features such as Lockdown Mode for enhanced security and expanded self-repair options for iPhones. The company also launched 'Apple Pay Later,' a buy-now-pay-later service, in 2023.

Apple’s compliance with European Union competition laws in early 2024 enabled iOS users in the EU to use alternative app stores and payment methods. Later that year, Apple acquired Pixelmator, an image editing software company, with assurances that existing apps would remain unchanged.

In November 2024, Apple settled a privacy lawsuit involving Siri, agreeing to a $95 million payout.

Products

Overview

See also: List of Apple products

Since its founding, Apple initially focused on selling computers, marketed under the "Macintosh" name since the mid-1980s. In the early 2000s, Apple diversified its offerings by entering the portable device market, starting with the iPod (2001), followed by the iPhone (2007) and iPad (2010).

Today, Apple offers a variety of products categorized as "Wearables, Home and Accessories," including the Apple Watch, Apple TV, AirPods, HomePod, and the Vision Pro mixed reality headset. The company's devices are renowned for their cohesive ecosystem when used together. However, Apple has faced criticism for its "walled garden" approach, as its products often rely on proprietary features and services that limit compatibility with non-Apple devices.

As of 2023, there are over 2 billion Apple devices in active use worldwide.

Mac

Main article: Mac (computer)

The Mac, short for Macintosh, is Apple's line of personal computers, which run on the company's proprietary macOS operating system. Introduced in the mid-1980s, the Mac was Apple's original product line. Despite its legacy, Macs accounted for only about 8% of Apple's revenue as of 2024.

Current Mac Families

• iMac: Consumer all-in-one desktop computer, introduced in 1998.
• Mac Mini: Compact desktop computer, introduced in 2005.
• MacBook Pro: Professional notebook, introduced in 2006.
• Mac Pro: Professional workstation, introduced in 2006.
• MacBook Air: Lightweight consumer notebook, introduced in 2008.
• Mac Studio: Small-form-factor professional workstation, introduced in 2022.

All Mac computers utilize Apple silicon chips, which are optimized for performance and energy efficiency. Macs come pre-installed with macOS and Apple-developed software like Safari, iMovie, GarageBand, and the iWork suite. Apple also offers professional-grade apps, including Final Cut Pro, Logic Pro, and Xcode.

Accessories for Macs include the Pro Display XDR, Apple Studio Display, Magic Mouse, Magic Trackpad, and Magic Keyboard.

iPhone

The iPhone is Apple's flagship line of smartphones, running the iOS operating system. First unveiled by Steve Jobs on January 9, 2007, the iPhone revolutionized the mobile phone

 industry with its multi-touch interface. The device is credited with launching the app economy.

iOS is one of the two major smartphone platforms globally, alongside Android. The iPhone has consistently been Apple's most significant revenue driver, accounting for nearly 50% of the company’s revenue as of 2024.

iPad

The iPad is Apple's line of tablet computers, running the iPadOS operating system. Launched on January 27, 2010, the iPad is primarily marketed for media consumption, productivity, art creation, videoconferencing, and gaming.

iPad Lineup

• iPad: Standard models.
• iPad Mini: Smaller form factor.
• iPad Air: Enhanced performance.
• iPad Pro: High-performance models featuring Apple silicon chips (M1 and M2).

While the iPad has faced criticism for its limited operating system compared to macOS, it remains the best-selling tablet worldwide. By September 2020, Apple had sold over 500 million iPads. The product accounted for 7% of Apple’s revenue by the end of 2024.

Accessories include the Apple Pencil, Smart Keyboard, Smart Keyboard Folio, Magic Keyboard, and various adapters.

Other Products

Apple categorizes products like AirPods, Apple Watch, Beats headphones, HomePod, and Vision Pro under "Wearables, Home and Accessories.

" This segment accounted for approximately 10% of Apple's revenue by the end of 2024.

• AirPods: Wireless headphones.
• Apple Watch: Smartwatches, including the high-end Apple Watch Ultra.
• HomePod: Smart speakers.
• Vision Pro: Mixed-reality headset.

Services

• Advertising through the App Store and Apple News.
• AppleCare+: Extended warranty program.
• iCloud+: Cloud storage services.
• Financial services such as the Apple Card and Apple Pay.
• Digital content platforms, including Apple Books, Apple Fitness+, Apple Music, Apple News+, Apple TV+, and the iTunes Store.

In 2019, Apple shifted focus to expand its service offerings, which comprised approximately 26% of the company’s revenue by the end of 2024.

Marketing

Branding

Apple's name was inspired by co-founder Steve Jobs' visit to an apple farm during a fruitarian diet. The company's original logo, designed by Ron Wayne, depicted Sir Isaac Newton sitting under an apple tree. This design was soon replaced by the "rainbow Apple," a multi-colored silhouette of an apple with a bite removed, created by Rob Janoff in 1977. While some believe the bite mark references Alan Turing's method of suicide, this connection is unsubstantiated.

In 1999, Apple adopted a monochromatic version of its logo, abandoning the rainbow scheme. Variations of this design include the Aqua-themed logo used from 1998 to 2003 and the glass-themed logo used from 2007 to 2013.

Apple has been recognized for fostering a loyal customer base and strong brand identity. Guy Kawasaki, a prominent Apple evangelist, referred to the phenomenon of brand fanaticism as "something that was stumbled upon." In 2014, then-chief designer Jony Ive stated that Apple products cultivate "an incredibly personal relationship" with users.

Apple has consistently ranked as one of the world's most admired and valuable brands. Fortune magazine named it the most admired company globally from 2008 to 2012. In 2013, it surpassed Coca-Cola as the world's most valuable brand according to Interbrand's "Best Global Brands" report. As of 2023, Apple is the world's 10th-largest filer of trademarks under the Madrid System.

Advertising

Apple's advertising campaigns have played a significant role in its success. The company's first slogan, "Byte into an Apple," was introduced in the late 1970s. From 1997 to 2002, the slogan "Think different" was widely used and remains associated with the brand. Specific products have been marketed with unique slogans, such as "Say hello to iPhone" for the iPhone and "hello (again)" for the iMac.

Apple's advertisements have been noted for their visual appeal and memorable music. Notable campaigns include the "1984" Super Bowl ad for the Macintosh and the "Get a Mac" series. Songs featured in Apple advertisements have elevated the profiles of artists, such as Feist's "1234" and Yael Naïm's "New Soul."

Retail Stores

Apple opened its first retail stores in May 2001, spearheaded by then-CEO Steve Jobs and retail executive Ron Johnson. Despite initial skepticism, the stores achieved rapid success, reaching $1 billion in annual sales within three years.

As of December 2017, Apple operates 499 stores across 22 countries. Many are located in shopping malls, though the company has established flagship stores in prominent urban locations. These stores are known for their distinctive architectural designs, including glass staircases and cubes, which have earned Apple design patents and awards.

Apple Stores underwent a redesign in 2016, introducing open spaces and interactive areas to enhance the customer experience. Despite offering competitive pay and benefits, opportunities for career advancement within Apple Stores remain limited.

Market Power

Apple has faced scrutiny for its market dominance and competitive practices. In March 2020, France fined Apple €1.1 billion for anticompetitive agreements with wholesalers.

In August 2020, Epic Games sued Apple and Google after their game, Fortnite, was removed from both app stores for implementing a payment system that bypassed store fees. This led to the formation of the Coalition for App Fairness, advocating for more favorable terms for app developers.

Privacy

Apple has emphasized privacy as a key aspect of its brand identity. In 2014, the company introduced encryption for iOS devices, making it impossible to access user data without a passcode. With iOS 14, Apple launched "App Tracking Transparency," requiring apps to obtain user permission for tracking. This feature faced criticism from Facebook, which relies on targeted advertising for revenue.

The company has faced challenges to its privacy stance. In December 2019, concerns arose about the iPhone 11 Pro's location tracking behavior, which Apple attributed to compliance with ultra-wideband regulations. The company later introduced a toggle to address user concerns.

In 2022, it was reported that hackers posing as law enforcement officials used forged documents to obtain user data from Apple. The company defended its processes, citing measures to validate law enforcement requests.

Leadership

Senior Management

As of January 3, 2025, the senior management team of Apple Inc. includes:

• Tim Cook: Chief Executive Officer
• Jeff Williams: Chief Operating Officer
• Kevan Parekh: Senior Vice President and Chief Financial Officer
• Katherine L. Adams: Senior Vice President and General Counsel
• Eddy Cue: Senior Vice President – Internet Software and Services
• Craig Federighi: Senior Vice President – Software Engineering
• John Giannandrea: Senior Vice President – Machine Learning and AI Strategy
• Deirdre O'Brien: Senior Vice President – Retail + People
• John Ternus: Senior Vice President – Hardware Engineering
• Greg Joswiak: Senior Vice President – Worldwide Marketing
• Johny Srouji: Senior Vice President – Hardware Technologies
• Sabih Khan: Senior Vice President – Operations

Board of Directors

As of January 20, 2023, the board of directors of Apple Inc. comprises:

• Arthur D. Levinson: Chairman
• Tim Cook: Executive Director and CEO
• James A. Bell
• Alex Gorsky
• Andrea Jung
• Monica Lozano
• Ronald Sugar
• Susan Wagner

Previous CEOs

Apple Inc. has had the following Chief Executive Officers:

• Michael Scott: 1977–1981
• Mike Markkula: 1981–1983
• John Sculley: 1983–1993
• Michael Spindler: 1993–1996
• Gil Amelio: 1996–1997
• Steve Jobs: 1997–2011

Ownership

As of December 30, 2023, the largest shareholders of Apple Inc. were:

• The Vanguard Group: 1,317,966,471 shares (8.54%)
• BlackRock: 1,042,391,808 shares (6.75%)
• Berkshire Hathaway: 905,560,000 shares (5.86%)
• State Street Corporation: 586,052,057 shares (3.80%)
• Geode Capital Management: 300,822,623 shares (1.95%)
• Fidelity Investments: 299,871,352 shares (1.94%)
• Morgan Stanley: 217,961,227 shares (1.41%)
• T. Rowe Price: 210,827,097 shares (1.37%)
• Norges Bank: 176,141,203 shares (1.14%)
• Northern Trust: 162,115,200 shares (1.05%)

Corporate Culture

Apple Inc. is renowned for its distinctive corporate culture, which evolved from its early years as a startup. Co-founder Steve Wozniak and Macintosh engineer Andy Hertzfeld attended the Apple User Group Connection club in 1985, marking the company's deep connections with its employees and the tech community. Apple has traditionally bucked corporate norms that many companies in the 1970s adhered to, with Steve Jobs notably walking around barefoot even after Apple had become a Fortune 500 company. By the time of the iconic 1984 advertisement, Apple had developed an informal corporate culture that set it apart from its competitors. In a 2011 report by Fortune, Apple was described as having a culture more akin to a startup than a large multinational corporation. Wozniak himself attributed his inspiration for founding Apple to his love of Star Trek and attending related conventions during his youth.

Despite the company’s growth and leadership changes, some media have suggested that Apple’s corporate culture may have softened, losing some of its original character. However, Apple still attracts talented employees by fostering individuality and excellence, a key element reinforced by Jobs' return to the company. Many Apple employees noted that projects involving Jobs were typically completed more quickly than others.

Apple offers its employees the Apple Fellows program, an initiative that rewards individuals for extraordinary contributions to the company's technical or leadership achievements in personal computing. Notable recipients of this award include Bill Atkinson, Steve Capps, Rod Holt, Alan Kay, Guy Kawasaki, Al Alcorn, Don Norman, Rich Page, Steve Wozniak, and Phil Schiller.

Jobs implemented a specialized employee structure, where employees focused on their specific areas of expertise. For instance, Ron Johnson, Senior Vice President of Retail Operations, was responsible for in-store service and layout, but inventory management was handled by Tim Cook, who had a background in supply-chain management. Apple also maintains a strict policy of accountability, with every project having a "directly responsible individual" (DRI).

Unlike many large companies, Apple’s executive compensation policy is relatively straightforward and lacks certain perks common among other CEOs, such as private aircraft usage or country club fees. Instead, executives typically receive stock options biannually. In 2015, Apple had 110,000 full-time employees, a figure that grew to 116,000 the following year despite the company's first revenue decline. By September 2017, this number rose to over 123,000 full-time employees. Apple does not publicly disclose how many employees work in retail, though it was estimated in a 2014 SEC filing that nearly half of its workforce is in retail operations.

Apple has a strong culture of secrecy, enforced by its Global Security team, which recruits from organizations such as the NSA, FBI, and U.S. Secret Service. In December 2017, Glassdoor ranked Apple as the 48th best place to work, a decline from its earlier high ranks, with its peak position at 10th in 2012. In 2023, Bloomberg revealed the existence of Apple’s Exploratory Design Group (XDG), which was working on glucose monitoring technology for the Apple Watch.

Offices

Apple Inc.’s global headquarters is located in Cupertino, California, in the heart of Silicon Valley. The headquarters is situated in Apple Park, a massive circular structure with a circumference of one mile (1.6 km) that opened in April 2017. The building houses over 12,000 employees and was designed to reflect Steve Jobs’ vision of a natural refuge, unlike traditional business parks. Jobs personally presented the proposal for Apple Park to the Cupertino City Council in June 2011, in his final public appearance before his death.

Before the opening of Apple Park, Apple’s headquarters was located at 1 Infinite Loop, also in Cupertino. The Apple Campus, which encompasses six buildings totaling 850,000 square feet (79,000 m²), served as the company’s headquarters from its opening in 1993 until 2017. The campus was designed to resemble a university, with the buildings arranged in a circular formation around a central green space.

In addition to its main headquarters, Apple occupies nearly 40% of Cupertino's office space, with several other office buildings spread throughout the city. These include former headquarters locations such as Stephens Creek Three (1977–1978), Bandley One (1978–1982), and Mariani One (1982–1993).

Internationally, Apple operates a major facility in Cork, Ireland, where it houses 5,500 employees at the Hollyhill campus, Apple's first location outside of the United States. In the United States, Apple has two campuses near Austin, Texas: one focused on Apple silicon engineering (opened in 2014) and the other, a larger campus opened in 2021, focused on technical support, supply chain management, and Apple Maps data management. Apple also has offices in Boulder, Colorado, Culver City, California, Herzliya (Israel), London, New York, Pittsburgh, San Diego, and Seattle.

Litigation

Apple has been involved in a variety of legal cases since its inception, particularly in enforcing its intellectual property rights. The company has pursued numerous high-profile lawsuits, including against companies like Samsung, Microsoft, Motorola Mobility, and Apple Corps. Apple has also defended itself against patent infringement claims, many of which have been dismissed as frivolous lawsuits filed by patent trolls.

In 2016, Nokia filed a suit against Apple claiming infringement of its patents in the U.S. and Germany. Apple also faced litigation in 2017 when Aqua Connect accused the company of patent infringement in relation to remote desktop technology. In 2022, Ericsson sued Apple over 5G technology royalty payments. Additionally, in June 2024, the European Commission accused Apple of violating the Digital Markets Act by restricting app developers from freely guiding consumers to alternative offers and content.

Finances

As of 2023, Apple Inc. is the world’s largest technology company by revenue, with US$383.28 billion in annual income. It is also the world’s largest technology company by total assets, the fourth-largest personal computer vendor by unit sales, and the world’s largest mobile phone manufacturer.

In its fiscal year ending in September 2011, Apple reported $108 billion in annual revenues, a significant increase from $65 billion in 2010. The company also held nearly $82 billion in cash reserves. In March 2012, Apple announced a $2.65 per-share dividend beginning in the fourth quarter of that year, subject to approval by its board of directors.

Apple's worldwide annual revenue reached $170 billion in 2013. By May of that year, the company entered the top ten of the Fortune 500 list, climbing to sixth place from its previous position in 2012. By 2016, Apple held approximately $234 billion in cash and marketable securities, 90% of which was held outside the United States for tax purposes.

In the first quarter of 2014, Apple accounted for 65% of the profits generated by the eight largest smartphone manufacturers, a percentage that increased to 92% by the first quarter of 2015. On April 30, 2017, The Wall Street Journal reported Apple’s cash reserves at $250 billion, which was officially confirmed to be $256.8 billion a few days later.

Apple became the largest publicly traded corporation in the world by market capitalization on August 3, 2018, and on August 2, 2018, it became the first publicly traded U.S. company to reach a $1 trillion market value. As of June 2024, Apple’s market value is just over $3.2 trillion. The company was ranked No. 4 in the 2018 Fortune 500 rankings of the largest U.S. corporations by revenue.

In July 2022, Apple reported an 11% decline in its Q3 profits compared to 2021, although its revenue for the same period rose by 2% year-on-year to $83 billion. This marked the second consecutive quarter of sales decline, attributed to the slowing global economy and supply chain disruptions in China. Apple was also one of the largest corporate spenders on research and development worldwide, with over $27 billion allocated to R&D in 2022.

In May 2023, Apple reported a 3% drop in its first-quarter revenue compared to 2022, marking the second consecutive quarter of sales decline. This decline was attributed to a slowing economy and consumers postponing purchases of iPads and computers due to higher prices. However, iPhone sales held steady with a 1.5% year-on-year increase, particularly in markets like Latin America and South Asia.

Taxes

Apple has faced scrutiny for its tax practices and use of subsidiaries in low-tax jurisdictions such as Ireland, the Netherlands, Luxembourg, and the British Virgin Islands. According to The New York Times, Apple was one of the first tech companies in the 1980s to designate overseas salespeople in high-tax countries in a way that allowed the company to sidestep income taxes by selling through low-tax subsidiaries. In the late 1980s, Apple pioneered the use of the “Double Irish with a Dutch sandwich”, an accounting strategy that reduced taxes by routing profits through Irish subsidiaries, the Netherlands, and then to the Caribbean.

In October 2012, British MP Charlie Elphicke published research indicating that multinational companies, including Apple, were making billions in profits in the UK while paying an effective tax rate of only 3%. This prompted calls for greater transparency and for government contracts to be withheld from companies not paying their fair share of tax.

A 2013 US Senate report concluded that Apple had held billions of dollars in profits in its Irish subsidiaries, using an unconventional tax structure that allowed the company to pay little or no taxes to any government. The report criticized Apple's tax tactics, noting that the company's Irish subsidiary, which manages Apple's European retail operations, had not paid any corporate income tax over the previous five years.

In response, Apple’s CEO, Tim Cook, defended the company’s tax practices during a Senate hearing, asserting that the company was the largest taxpayer in the U.S. and had an effective tax rate of approximately 26% as of Q2 FY2016. In an interview with the German newspaper FAZ in October 2017, Cook claimed that Apple was the world’s largest taxpayer.

In 2016, after a two-year investigation, the European Commission determined that Apple's tax arrangements in Ireland amounted to illegal state aid, ordering the company to pay 13 billion euros ($14.5 billion) in unpaid taxes. However, this ruling was later annulled in 2020 after the European General Court determined that the Commission had not provided sufficient evidence. In 2018, Apple repatriated $285 billion to the United States, resulting in a $38 billion tax payment spread over the following eight years.

Environment

Apple Energy

Apple Energy, LLC is a wholly-owned subsidiary of Apple Inc. that sells solar energy. As of June 6, 2016, Apple’s solar farms in California and Nevada have a combined generation capacity of 217.9 megawatts of solar energy. Apple also received regulatory approval to build a landfill gas energy plant in North Carolina, which will use methane emissions to generate electricity. Additionally, Apple’s North Carolina data center is already powered entirely by renewable energy.

Energy and Resources

In 2010, Climate Counts, a nonprofit organization that rates companies on their environmental practices, gave Apple a score of 52 out of 100, placing the company in the top category "Striding." This was a marked improvement from May 2008, when Apple scored only 11 points out of 100, positioning it at the bottom of the electronics industry with a "stuck icon" rating. At that time, Climate Counts advised consumers to avoid Apple for environmental reasons.

Following a Greenpeace protest in 2012, Apple committed to ending its use of coal and transitioning to 100% renewable energy. By 2013, Apple was powering all of its data centers with 100% renewable energy, and 75% of the company’s overall power usage came from clean renewable sources.

In May 2015, Greenpeace commended Apple for its renewable energy efforts, praising the company for setting a new standard for the industry. Greenpeace noted that Apple demonstrated that a 100% renewable internet is achievable and provided models for other companies to follow.

By 2016, Apple reported that 100% of its U.S. operations, including data centers, were powered by renewable energy. At the time, 93% of Apple’s global operations were powered by renewable energy. However, since many of Apple’s facilities are connected to local grids that typically include a mix of fossil and renewable sources, Apple offsets the carbon emissions associated with its electricity use. All Apple tablets, notebooks, desktops, and displays have achieved the EPEAT Gold rating, which reflects their energy efficiency and sustainability. Apple also recycles water 35 times in its data centers, although the growing operations at retail, corporate, and data centers have increased total water consumption to 573 million US gallons (2.2 million m³) as of 2015.

At a March 21, 2016 event, Apple revealed that 93% of its worldwide operations were powered by renewable energy, and the company had made significant progress toward using sustainable paper in its product packaging. As of 2016, 99% of the paper used in Apple’s product packaging came from post-consumer recycled paper or sustainably managed forests. Apple also planned to switch entirely to paper-based packaging for all its products.

On August 16, 2016, Apple announced that its major supplier in China, Lens Technology, had committed to using 100% renewable energy for its glass production by 2018. Apple also revealed that 14 of its final assembly sites in China had achieved Zero Waste to Landfill certification by UL, with nearly 140,000 metric tons of waste diverted from landfills.

On July 21, 2020, Apple announced its plan to become carbon neutral across its entire business, manufacturing supply chain, and product life cycle by 2030. The company’s strategy includes measures to reduce emissions through low-carbon product design, energy efficiency, renewable energy, process and material innovations, and carbon removal initiatives.

In June 2024, the United States Environmental Protection Agency (EPA) published a report stating that a facility leased by Apple in Santa Clara, California, called Aria, might have violated federal regulations under the Resource Conservation and Recovery Act (RCRA). The EPA had conducted an inspection due to a tip from a former employee. The inspection revealed that Apple might have improperly managed waste and miscalculated the effectiveness of its activated carbon filters that are used to remove volatile organic compounds (VOCs) from the air.

Toxins

Following continued pressure from Greenpeace, in 2008, Apple became the first electronics manufacturer to eliminate all polyvinyl chloride (PVC) and brominated flame retardants (BFRs) from its product line. In 2007, Apple began replacing cold cathode fluorescent lamp (CCFL)-backlit LCD displays with mercury-free LED-backlit LCD displays and arsenic-free glass, starting with the MacBook Pro. Apple also offers comprehensive and transparent information on the environmental impact of its products, including carbon dioxide equivalent (CO2e) emissions, materials used, and electricity consumption, allowing consumers to make informed purchasing decisions.

By June 2009, the iPhone 3GS was free of PVC, arsenic, and BFRs. Since 2009, all Apple products feature mercury-free LED-backlit LCD displays, arsenic-free glass, and non-PVC cables. Apple’s commitment to environmental responsibility has led to its products consistently earning EPEAT Gold status and exceeding the latest Energy Star guidelines.

In November 2011, Apple ranked fourth in Greenpeace’s Guide to Greener Electronics, which evaluated electronics manufacturers based on sustainability, climate and energy policies, and product "greenness." Apple’s score of 4.6/10 reflected the company’s efforts, including exceeding its goal of 70% global recycling by 2010. However, Greenpeace criticized Apple’s lack of external verification for its greenhouse gas emissions data and the absence of targets to reduce emissions.

In January 2012, Apple requested that its cable manufacturer, Volex, produce halogen-free USB and power cables to further reduce environmental impact.

Green Bonds

In February 2016, Apple issued its first-ever green bond, a US$1.5 billion climate bond aimed at financing environmental projects. This move marked the first time a U.S. tech company issued such a bond.

Supply Chain

Overview

Apple products were primarily made in Apple-owned factories in the United States until the late 1990s. However, due to outsourcing strategies implemented in the 2000s, nearly all of Apple's manufacturing is now handled abroad. According to a report by The New York Times, Apple insiders have noted that the sheer scale, flexibility, and industrial skills of overseas factories have outpaced their American counterparts, making "Made in the U.S.A." no longer a viable option for most of Apple's product line.

Apple’s manufacturing, procurement, and logistics practices allow it to launch massive product releases without maintaining large inventories, which helps maintain high profit margins. In 2011, Apple achieved a 40% profit margin, significantly higher than the 10-20% margins of most other hardware companies. Apple's Chief Operating Officer, Tim Cook, often referred to this operational strategy with the phrase, "Nobody wants to buy sour milk."

Advanced Manufacturing Investments

In May 2017, Apple announced a $1 billion funding initiative to support "advanced manufacturing" in the United States. This included a $200 million investment in Corning Inc., a manufacturer of Gorilla Glass, which is used in Apple’s iPhones. In December 2017, Apple’s COO, Jeff Williams, clarified that the $1 billion funding was not a set limit, emphasizing that Apple was looking to foster opportunities for companies involved in advanced technologies and manufacturing that contribute to the company’s innovation.

Industry Standards and Technological Influence

Apple has historically avoided adopting industry standards for hardware and instead created its own. For example, Apple initially resisted industry norms but later adopted the PCI bus in the 7500/8500/9500 Power Macs in the late 1990s. Since then, Apple has actively participated in industry standards groups to influence the future of technology standards like USB, Wi-Fi, AGP, NVMe, PCIe, and others in its products. Apple-originated FireWire was widely adopted after it was standardized as IEEE 1394 and became a legally mandated port in all U.S. cable TV boxes.

Efforts in the Indian Market

Apple has been gradually increasing its presence in the Indian market. In July 2012, Apple CEO Tim Cook expressed his enthusiasm for India, though he acknowledged that the company saw larger opportunities outside the region. India’s requirement that 30% of products sold be manufactured locally was seen as an obstacle, increasing the cost of bringing products to market. In May 2016, Apple opened an iOS app development center in Bangalore and a maps development office in Hyderabad, with plans to employ 4,000 staff.

In March 2017, The Wall Street Journal reported that Apple would begin manufacturing iPhone models in India, and by May 2017, Apple had initiated production of the iPhone SE in the country. Apple later began manufacturing the iPhone 7 in Bengaluru in April 2019 to meet local demand while also seeking further government incentives. At the beginning of 2020, Tim Cook announced plans for Apple’s first physical retail outlet in India, initially scheduled for 2021, but it was delayed and eventually opened in April 2023. An online store was launched in September 2020.

Worker Organizations

Apple employs 147,000 workers globally, with 25,000 corporate employees at Apple Park in Silicon Valley. The majority of Apple’s workforce is based at over 500 retail Apple Stores worldwide. The company relies heavily on outsourced labor for manufacturing, particularly in China, where it directly employs 10,000 workers across its retail and corporate divisions. Additionally, Apple’s suppliers, such as Foxconn and Pegatron, employ approximately 1 million workers to assemble Apple products, including 350,000 workers at Zhengzhou Technology Park exclusively working on iPhones.

As of 2021, Apple sourced hardware components from 43 different countries. The majority of assembly is done by Taiwanese original design manufacturers, including Foxconn, Pegatron, Wistron, and Compal Electronics, with factories primarily located in China and, to a lesser extent, in Brazil and India.

Workers at Apple, both direct and contracted, have been involved in unionizing efforts since the 1990s. Apple employees have formed or joined trade unions and works councils in countries such as Australia, France, Germany, Italy, Japan, the United Kingdom, and the United States. In 2021, a solidarity union called Apple Together aimed to unite the company’s global worker organizations.

Industrial labor disputes, including those related to union recognition, have largely occurred indirectly through Apple’s suppliers, particularly at Foxconn plants in China and, to a lesser degree, in Brazil and India.

Conflict Minerals and Lawsuits

In 2019, Apple was named in a lawsuit involving forced labor and child slavery in cobalt mines in the Democratic Republic of the Congo (DRC). The lawsuit was filed by Congolese families of children who were injured or killed while working in mines owned by Glencore and Zhejiang Huayou Cobalt, which supply materials for Apple’s batteries.

In April 2024, lawyers representing the DRC notified Apple of evidence suggesting that the company may be sourcing minerals from conflict areas in eastern Congo. Apple’s policies and documentation on conflict minerals describe efforts to mitigate the issue; however, discrepancies in supplier reporting were identified, with reports suggesting that Apple’s mitigation efforts may not be as effective as claimed. In December 2024, the DRC filed a lawsuit against Apple’s European subsidiaries over these issues.

References

• Buy Apple Watch se GPS + cellular, 44mm midnight aluminium case with Midnight sport band - S/m (no date) Apple (IN). Available at: https://www.apple.com/in/shop/buy-watch/apple-watch-se/44mm-cellular-midnight-aluminium-midnight-sport-band-sm-se (Accessed: 13 January 2025).
• Log into Facebook (no date) Facebook. Available at: https://www.facebook.com/photo.php?fbid=2737101739695279&id=598610853544389&set=a.598662950205846&locale=vi_VN (Accessed: 13 January 2025).
• Moore-Colyer, R. (2024) The iphone 15 pro Max has me worried..., TechRadar. Available at: https://www.techradar.com/phones/iphone/the-iphone-15-pro-max-has-me-worried (Accessed: 13 January 2025).
• Research guides: This Month in business history: The founding of Apple Computer, Inc.. (no date) The Founding of Apple Computer, Inc. - This Month in Business History - Research Guides at Library of Congress. Available at: https://guides.loc.gov/this-month-in-business-history/april/apple-computer-founded (Accessed: 13 January 2025).