Milestone 1: Apple
A well-known company in the United States, arguably one of the largest companies in the
The United States is Apple. Apple completed shifted the market for personal computers and
technology. Although it wasn’t the first company to make personal computers or “smartphones”,
Apple certainly, as Vox Media put it, “changed the world forever.” Their quick success made
them one of the most successful companies in the world, “These days, Apple is worth more than
twice as much as Exxon Mobil and three times as much as General Electric, traditional blue chip
stocks.” (How Apple’s iPhone changed the world). There are many rivals to Apple. Different
computer companies like Microsoft, IBM, Dell, and more. And to their phone’s rivals, Samsung,
Andriod, Google, and more. Even though their rivals provide a much cheaper alternative to their
phone, Apple has seriously developed a “cult-like” (MKBDH) following that has obtained loyal
customers. But with the high cost of their products, has certainly affected the type of customers
that Apple is able to obtain. Even though they are successful, they have a smaller customer base
than a typical Andriod company would. Having a high income is an essential part of an
individual’s buying power for Apple’s products. (Sullivan & Steven 2003). As a result, the
demand is lower than their rivals. This is why Apple mostly focuses on affluent countries, such
as the United States, most countries in the European Union, and Canada. Many Apple customers
would feel out of place in most countries around the world because the majority of the market
internationally is held by Andriod.
The GDP in the countries that Apple focuses on its $15 trillion or more. Due to the
pandemic, there has been a lack of supply for their products, such as a “chip shortage”. But,
“Bank of America analysts said on Wednesday that iPhone demand is still strong despite a recent
report that said Apple cut production of its iPhone 13 and new iPhone SE.” (CNBC).
So although there are changes in the economy, Apple does not suffer because its client base is more affluentvand has created a desire from its customers to purchase their new products. Thus, making it the
first company to reach a GDP of $3 trillion dollars, making it larger than many countries.
According to the textbook, “‘The lower the price, the greater the quantity demanded—this is
often called the ‘law of demand.’” (pg 31, Modern Principles of Economics). Although their
price is high, and their demand is lower, they are still extremely successful compared to their
rivals, making their market strategy one of the most brilliant in the industry.
References:
Cowen, T., & Tabarrok, A. (2020). Modern Principles of Economics (5th Edition).
Macmillan Higher Education. https://bookshelf.vitalsource.com/books/9781319329464
Gross domestic product. Gross Domestic Product | U.S. Bureau of Economic Analysis
(BEA). (n.d.). Retrieved July 1, 2022, from
https://www.bea.gov/data/gdp/gross-domestic-product
IPhone market's supply and demand. StudyCorgi.com. (2020, May 19). Retrieved July 1,
2022, from https://studycorgi.com/iphone-markets-supply-and-demand/
Molla, R. (2017, June 26). How Apple's iphone changed the world: 10 years in 10 charts.
Vox. Retrieved July 1, 2022, from
https://www.vox.com/2017/6/26/15821652/iphone-apple-10-year-anniversary-launch-mobi
le-stats-smart-phone-steve-jobs
Sarahalessan. (2022, March 30). Bofa says iPhone demand still strong despite reports of
production cutback. CNBC. Retrieved July 1, 2022, from
https://www.cnbc.com/2022/03/30/apple-iphone-demand-still-strong-despite-reports-of-pro
duction-cut-bofa.html
As a marketing student, I have always been incredibly impressed by Apple's ability to communicate their brand so clearly and capture the attention of such a wide audience. You have articulated that the company offers a product mix that is often priced higher than the offerings of major competitors. Though price tends to correlate with demand, Apple has created a product that has a higher perceived value in a consumers mind than many competitors.
You have brought up an interesting point in terms of the relationship between GDP and demand. Apple products tend to sell at higher rates in more affluent geographical areas than in areas with a lower GDP. It is interesting that you have stated that the company has not suffered in the current economic climate. Though the company continues to dominate the tech industry and has hit several significant milestones, production cuts have hit Apple in recent months due to rising inflation. While the company may not suffer great losses, I do believe the company has been hit with the challenge of not being able to operate at its maximum capacity given current economic trends.
I enjoyed your post. I am one of the so called Apple Junkies. I am die hard, and actually do not understand how anyone could use any other product. With that being said it is all in the branding for sure. My husband is all about Samsung and feels strongly about it. What I think is amazing is the fact that all of the companies have anything you need to accessorize with the latest technology. I do believe Apple definitely has a larger client base and that is something you have proven. At the end of the day it all comes down to customer preference and Apple is the winner.
Apple is a very large company; it is the 7th largest company in the world (Forbes). As you stated, the "chip shortage" took a massive hit on apple, giving them a hard time meeting demand. They were even unable to meet demand in some cases, such as customer ordering/paying for an iPhone 13/Pro/Pro Max/Mini and never receiving one until a reattempted order was submitted. The demand for the iPhone 13 series will still be high even going into Apple's showcase event in early September, where they will announce the new iPhone 14 series and a possible new watch series. Apple's demand will never cease unless Samsung or Google overtakes the market. Many reasons won't happen due to apple's "cult-like" customer base. Apple leads in popularity in both the smartphone field and the computer field. There is no sign of Apple ceasing to amaze every showcase they have.
References:
https://www.forbes.com/lists/global2000/?sh=352a8e035ac0
Svyatoslav,
I enjoyed reading your blog post on Apple, and learning about the impact that this company has made technologically from a global economic standpoint. You mentioned one of Apple's rivals being Samsung, and I'd like to further elaborate on the rivalry that these two companies face in competing to become to lead in mobile technology providers for consumers. "As you can imagine, Apple watches what competitors do closely and, has never taken Samsung's push for continual innovation for granted. Apple's interest in Samsung's stronger commitment to mobile innovation and creative marketing is a good thing.". (Bajarin, 2021) The commitment of both companies to becoming more and more innovative with smartphone technology can be viewed as beneficial in some countries, and dangerous in others. Globally, I believe that both companies need to pace themselves with the unique technological advancements of each country in order to become more productive.
Thank you.
References
Bajarin, T. (2021) Why Apple And Samsung's Device Competition Is Great For Consumers. Retrieved from https://www.forbes.com/sites/timbajarin/2021/08/12/why-apple-and-samsungs-device-competition-is-great-for-consumers/?sh=3fd955d65e22
Hello,
Thank you for your contributions towards this week's Blog. According to the company profile, mobile devices such as the iPhone, iPad, and iPod touch are all made by Apple Inc. (Apple), which also sells a variety of accessories and wearable tech. Software, services, hardware, networking, as well as third-party digital content and apps are all available for purchase. The corporation divides its goods and services into five categories: iPhone, Services, Mac, Wearable, Home, and Accessories. Different parts of the world, including North and South America, Europe, Asia-Pacific (including Greater China), Japan, and the rest of the Pacific Rim, create income for Apple. For the fiscal year ending September 2021 (FY2021), the firm recorded sales of (US Dollars) US$365,817 million, an increase of 33.3 percent over FY2020. The operational margin of the corporation was 29.8% in FY2021, up from a margin of 24.1 percent in FY2020. Comparing FY2020 to FY2021, the company's net margin was 20.9 percent, up from 25.9 percent in FY2021. I enjoyed researching this company and reading your post.
References
Apple Inc. Accessed July 4, 2022. https://search-ebscohost-com.ezproxy.regent.edu/login.aspx?direct=true&db=dmhls&AN=5B0A0C20-9BB6-4284-A575-AC0F2261F45C&site=bsi-live
I can appreciate your post about apple. I am very much part of that apple cult that you wrote about. I agree that the substantial following and that the brand has created through it's many products will continue to keep apple in business. I consider myself a very loyal customer to a fault. I've been one that always needs the newest gadget or what seems to be the more updated phone when in all actuality it's just a higher number. I'll leave that to the younger generation. I am old enough to have had one it's first computers. The demand for their products will continue to grow as we continue to bring new life into the world. At an early age we influence those that we care for on what's better opposed to the rival company. So, if you are an apple family then when the kids become of age that is what they are introduced to. I think that's how it began.