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Thursday, May 08, 2025
Apple from 1980: US and tax of American firms in Ireland
In 1984, the Ford Motor Company's car assembly plant in Cork, Ireland, closed due to the lifting of import restrictions and increased international competition. This decision resulted in the loss of 800 jobs and the end of Ford's production in Ireland, which had begun in 1917.
Apple established its first international operations in Ireland in 1980, and a manufacturing plant in Cork, in the second city in the Republic of Ireland.
Apple in Ireland began in 1980 with a single manufacturing facility and 60 employees. Now the Irish payroll is about 6,000.
This move marked the company's first international manufacturing facility and played a significant role in Apple's global expansion.
Apple, first began operations at Hollyhill on the north side of the city in October 1980, just four years after the company was founded in California.
From 1956 to 1980, Ireland offered a zero tax rate to attract foreign companies, and eligible companies arriving in 1980 received tax holidays until 1990.
Eligible companies arriving in 1980 were given "tax holidays" until 1990. "Any multinational attracted into Ireland that was focusing on the export market paid 0 per cent corporation tax," said Barry O'Leary, a former chief executive of IDA Ireland (Industrial Development Authority).
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Dublin at night
The Irish economy expanded by a stunning 26.3% in 2015, compared to an expected rate of 7.8%.
Foreign companies that switched their base to Ireland were included in the value of its corporate sector, pushing up the value of the state’s balance sheet.
There are about 970 US companies in Ireland, employing around 210,000 people.
Total employment was 2.78 million in December 2024.
These companies also contribute significantly to the Irish economy, spending over €41bn annually.
This month Apple announced that it planned to manufacture all the iPhones for the US market in India.
According to the International Data Corporation, the US accounted for about 28% of Apple’s 232.1mn global iPhone shipments in 2024.
In 2023 (published in mid-2024) the Irish Enterprise agency reported that €34.60 billion (Euros), in indigenous exports. There were no net data.
What is Ireland's exposure to the US economy and Trump's plans?