Apple Corps

• 1. Tax-Driven Origins

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  In 1967, the Beatles faced a stark financial choice. Their accountants informed them that they held £2 million in income. They could either invest this sum into a business venture or lose it to the Inland Revenue due to higher individual tax bills compared to corporate rates. This pressure sparked the creation of Apple Corps. The group began searching for tax shelters as early as 1963 and 1964 under the guidance of Walter Strach. Initial steps included forming Beatles Ltd and later Beatles and Co. Paul McCartney conceived the name during a visit to his publicist Derek Taylor's London flat. He explained that children learn A is for Apple when growing up. McCartney suggested adding Core but could not register that phrase. They chose Corps instead because it shared the same pronunciation. McCartney drew inspiration from René Magritte's painting Le Jeu de Mourre, which depicted an apple with Au revoir painted on it.

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• 2. Chaotic Early Administration

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  For the first few months of its existence, Apple Corps lacked a physical office. Most business operations occurred within the NEMS building until autumn 1967. The band utilized their four-story property at 94 Baker Street, originally purchased by their accountants as an investment. John Lennon asked Alistair Taylor to serve as General Manager in December 1967. Taylor appeared in a famous advertisement designed by McCartney showing him disguised as a one-man band. The campaign promised talent to anyone who applied. Mail rooms and conference rooms became jammed with artists begging for money. George Harrison later lamented that every freak in the world came through their doors. Many received investments and vanished without trace. The company suffered from financial ignorance among the owners combined with naive utopian goals. Employees exploited this naivety by purchasing drugs, alcohol, and expensive lunches as business expenses. When Allen Klein took over management in 1969, he streamlined affairs overnight. Lunches changed from Beluga caviar to beans-on-toast in the office kitchen.

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• 3. Diverse Subsidiary Divisions

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  Apple Corps operated through multiple specialized divisions including Electronics, Films, Publishing, Records, and Retail. Apple Electronics was founded as Fiftyshapes Ltd. at 34 Boston Place in Westminster. Yanni Alexis Mardas, nicknamed Magic Alex by Lennon, headed the division. His impractical designs cost the Beatles at least £300,000 before his dismissal in 1969. Apple Films produced Magical Mystery Tour in 1967 and Yellow Submarine in 1968. Other releases included Raga, The Concert for Bangladesh, and Little Malcolm. Apple Publishing signed early acts like Focal Point and Grapefruit. Badfinger achieved hits such as No Matter What and Day After Day under this banner. Zapple Records launched on the 3rd of February 1969 but closed after two releases due to Klein's intervention. The Apple Boutique opened on the 7th of December 1967 at 94 Baker Street. It closed its doors on the 31st of July 1968 after failing to generate profit. Shoplifting by customers and staff contributed to its failure. Apple Studio opened in September 1971 following an eighteen-month rebuild costing $1.5 million.

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• 4. Legal Trademark Wars

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  The band dissolved in April 1970 leading to financial chaos within Apple Corps. Dissolution of the company itself was considered but decided against. Ownership remained with McCartney, Starr, and the estates of Lennon and Harrison. Neil Aspinall served as chief executive from 1970 until 2007 despite not holding the official title initially. Jeff Jones replaced him in April 2007 after Aspinall retired. In 2010, Apple Corps ranked number two on Fast Company magazine's list of innovative music industry companies. This recognition followed the release of The Beatles Rock Band video game and remastering efforts. The company currently operates from headquarters at 27 Ovington Square in London Knightsbridge district. Apple Studios ceased operations on the 16th of May 1975 after serving artists like Fanny and Harry Nilsson. Apple Records continues issuing new releases while maintaining copyright relationships with EMI. Disputes over unpaid royalties led to settlements in 1989 and 2007 involving EMI and Capitol Records. A lawsuit against Nike Inc regarding Revolution usage concluded out of court on the 9th of November 1989.

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