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Apple's financial success: The precariousness of power exercised in global value chains

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  • Haslam, Colin
  • Tsitsianis, Nick
  • Andersson, Tord
  • Yin, Ya Ping

Abstract

The topic of this paper is the Apple Inc business model and how, in a financialized world, the success of this business model is represented by what we term financial ‘point values’. Our argument is that there is a tendency to promote specific point valuation multiples as measures of success, but these values, by their nature, do not reveal the contingent and variable nature of the power relations exercised in and along global supply chains. Firms such as Apple exploit their resources and capabilities to ‘create value’ but also exercise power to recalibrate relationships with suppliers in the value chain to secure ‘value capture’ for financial transformation. Value capture is an active ingredient that can help inform our understanding of the fragility of the Apple business model value proposition and frame a critical argument regarding the precarious nature and sustainability of Apple's substantial profit margins.

Suggested Citation

  • Haslam, Colin & Tsitsianis, Nick & Andersson, Tord & Yin, Ya Ping, 2013. "Apple's financial success: The precariousness of power exercised in global value chains," Accounting forum, Elsevier, vol. 37(4), pages 268-279.
    • Handle: RePEc:eee:accfor:v:37:y:2013:i:4:p:268-279
    DOI: 10.1016/j.accfor.2013.05.001
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    References listed on IDEAS

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    1. William Milberg & Deborah Winkler, 2010. "Financialisation and the dynamics of offshoring in the USA," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 34(2), pages 275-293, March.
    2. William LAZONICK, 2008. "The Quest for Shareholder Value : Stock Repurchases in the US Economy," Discussion Papers (REL - Recherches Economiques de Louvain) 2008043, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    3. William Lazonick, 2008. "The Quest for Shareholder Value: Stock Repurchases in the US Economy," Recherches économiques de Louvain, De Boeck Université, vol. 74(4), pages 479-540.
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    1. Lehman, Glen & Haslam, Colin, 2013. "Accounting for the Apple Inc business model: Corporate value capture and dysfunctional economic and social consequences," Accounting forum, Elsevier, vol. 37(4), pages 245-248.
    2. Sun, Yutao & Grimes, Seamus, 2016. "China’s increasing participation in ICT’s global value chain: A firm level analysis," Telecommunications Policy, Elsevier, vol. 40(2), pages 210-224.
    3. Krishnan, Sarada R., 2018. "Influence of transnational economic alliances on the IFRS convergence decision in India—Institutional perspectives," Accounting forum, Elsevier, vol. 42(4), pages 309-327.
    4. John R. Bryson & Vida Vanchan, 2020. "COVID‐19 and Alternative Conceptualisations of Value and Risk in GPN Research," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 111(3), pages 530-542, July.

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