Microeconomics of Apple Inc
’s most common hardware products include iPhone, Macintosh computers and iPod. Apple Inc. Company also develops several software products for customers such as Mac OS operating system, iTunes media, iLife suite among others. The purpose of this research paper is to analyze apple company in terms of the products and services and evaluating its current status in the communication market. This will be achieved by analyzing the company’s profile since its establishment and critically observing the trends and stages of evolution until now and also evaluating the company’s strategic plans towards attaining its goals, mission ("Apple surpasses Microsoft as world's most valuable tech company," 2010). Apple Company has established a distinctive status in the field of consumer electronics where users of Apple products remain loyal and enthusiastic while it faces criticism from those without any experience with the products as being overpriced ("Brief History of Apple, Inc.
One of the most significant decisions made by Apple to date was the invention and publication of the 1984 commercial. Ridley Scott was the director of this commercial which was declared in the 3rd quarter of Super Bowl XVIII. Apple Company was incorporated to deal with numerous products and in general, the company aims at manufacturing, designing and marketing media devices, communication devices, music players, and computers. In addition, the company sells numerous related accessories, services, software, networking solutions and digital applications and contents (Corsi & Morin, 2015). The ability of Apple Inc. to consistently bring the innovation and operational excellence has helped it to dominate and bear in various competitive markets around the world. The use of cellphone devices has grown rapidly over the past 20 years across the world although different regions and countries have had different adoption rates.
However, most countries around the world surpassed 100% market penetration by 2013 with most people having more than one cellphone. It was estimated that there were over 7 billion subscriptions of mobile phones globally in 2014, and the rapid growth in market penetration of mobile phones reflect how cellphones have become an integral part of our daily lives. at the moment has a lesser price to earnings ratio than the standard industry ratio. This means that Apple Inc. is less of an unsafe investment as compared to other companies in the computer hardware industry. Moreover, Apple Inc. has a higher current ratio which indicates that the company’s resources that can be changed into cash are sufficient to meet its short-term requirements. d. Three factors are central to understanding the responsiveness of customers to product prices and Apple Company has implemented them in their sales and marketing strategies.
Firstly, the economic factor which is the basis of a purchasing decision whereby a person cannot buy what they cannot afford therefore most customers use creative budgeting to acquire what they really want. Secondly, the functional factor emphasizes on how well the product meets the needs of the customer since the seller must set the customer up not for failure but for success. Finally, the psychological factor is all about the customer wants which is triggered by their emotion through effective advertising. d. Apple industry has employed several strategies in the manufacture of their products in efforts to reduce the costs of production while increasing their profit margins. For instance, Apple contracted a manufacturing company in China called Foxconn to produce a number of iPhone under contract terms.
This approach helps Apple Inc. to reduce the cost which could be encountered if apple would have manufactured the iPhone itself. Usually, all iPhones use the same operating system and software and therefore the cost incurred for the purpose of research and development caters for all the iPhone products being produced. Overall Market of Apple Inc. Apple is the leading company in market share of the smartphone and tablet market with a volume of 61. 5% and 29% market share in tablet and smartphone markets respectively. Apple Inc has a gross profit margin of 44. produces and sells unidentical products and technology which enables it to effectively and efficiently survive in the market. Recommendations The Apple Inc. success today is associated with its capacity of the company to effectively coordinate and integrate its actions and commitments so as to capitalize on value, reinforce its competitive advantage and also utilize its core proficiencies.
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