On the same day Apple Inc. is set to announce its fourth quarter financial results , the GoodElectronics Network and SOMO are publishing a paper that is critical of the company’s business model and impact on society. The paper explains how Apple is short-changing societies by seeking to maximize financial returns on its enormous profits instead of reinvesting that value into the real economy.
The multinational shrewdly minimises its corporate costs through the relentless offshoring of production and related ‘activities’ to low-wage countries and tax havens. Its accumulated returns far exceed Apple’s capacity to reinvest its earnings productively. As a result, Apple increasingly operates like a large institutional investor, investing most of its mounting cash pile in financial markets. (more...)