Apple Business Model: Financialization across the Pacific
Workaround: In current version of Panels 3.8, it seems this body field needs to be populated in order for title above to appear. This note is hidden by custom CSS style. Jack Latimer.
Working PaperThis paper argues that thirty years ago, favourable cost conditions built productive power in Asia, whereas now US financial power drives and benefits from favourable conditions in China as well as the USA. It considers the changing business models within the complexities of a globalised and financialized world since the 1970s and combines the literatures on financialization and on global supply chains to present an alternative view of the dual pressures and its outcomes. It then adds a temporal dimension through the use of macro evidence on cost ratios and labour share of value added in low wage Asia to compare new entrants into the industrial world order since the 1970s. A third section presents a case study which deconstruct Apple Inc.’s financial success and its trans-Pacific relations with its handset supplier Foxconn International Holdings (FIH). The paper concludes by observing that the rise of the post national corporate player changes the alignment between large corporate interests and the US economy where Apple hoards its cash surplus and the success for the stockholders does not align with the broader needs of the US economy and society.20124111