The Apple Company Introduction The success of a company depends on the market performance of its product. Performance of a product is largely determined by the attractiveness of a product to the customer and the ability of the company to sell the product at a profitable price…
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At the end of 2010-2011 financial year, Apple sold 27 million compared to the 6 million units sold in 2008. This essay will therefore analyze Apple’s Iphone from a microeconomic and macroeconomic perspective. The main factor that affects the supply and demand of a product is price. Price is the exchange value of a product at a given time and market. Consequently, Apple will experience a change in the demand of its product if it changes its price. Currently the IPhone is the most highly priced smart phone in the market. This is in comparison with other similar products such as Samsung Galaxy. The Apple Company will also be willing to increase the supply of the product at high market price. Technology is the second factor that influences IPhone’s demand and supply. In the current digital age, high tech gadgets such as smart phones are increasingly becoming necessary. In addition, technological advancement has increased efficiency in the production of the product (Bade, 2007, p. 23). This has increased the supply of the product leading to a reduction in price. Advancement in technology has also caused a reduction in the prices of other related smart phones particularly those manufactured by Chinese companies. This has caused a shift in the customer base for the product. Market structure relates to the nature or influence of buyers and suppliers in a market. Perfect competition, oligopoly, monopoly, and monopsony are the basic market structures. The Apple Company operates in a perfect competition market. A perfect competition market is considered as an ideal market, which is characterized by many buyers and suppliers. In addition, a perfect competition market is characterized by freedom of entry and exit. This promotes the production homogenous products and availability of numerous substitutes. In such market, product, promotion or advertisement are critical factors that suppliers use to increase the sale of their products. Advertisements and free market information makes the consumers to have readily available information about prices, products, and competition of the supplies (Bade, 2007, p. 43). Thus, consumers in the high-tech and gadget market are aware of products of other related producers such as Nokia, Motorola, and Samsung. The profitability of a product determines its existence in a competitive market. In addition, profitability of a company determines the company’s preference for its production. The Apple Company continuously advertises its products in order to maintain its position in the market. IPhone advertisements are common in popular print and electronic media. Online magazines and social media are some of the common platforms through which Apple advertises its products. Through these advertisements, the company informs potential and existing customers about the high-tech capabilities of their devices. A typical advert will illustrate user friendly and device intelligence features that make the IPhone to stand out from other similar products. In addition, the company needs to increase its investments in research and innovation. Acquiring patents for smart phone features will increase the profitability of the product. In addition, the Apple Company will have profitable operations through reduced costs of operation. Technology innovations will lead to efficient operations and reduced cost of operation. The current market structure is slightly profitable
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(The Apple Company Assignment Essay Example | Topics and Well Written Essays - 1500 Words)
“The Apple Company Assignment Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.org/macro-microeconomics/1454290-coursework-assignment.
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