This report reveals the study of economic environment of Apple Inc. Apple Inc. is a well- known manufacturing company in U.S.A. The study will help to know briefly about Apple Inc. and its products as well as the production factors and the cost structure, reveals the market structure and performance of the company. MACRO analysis provides information about the political, economic, legal and technological factors which helps to know the economic condition of USA and Apple Inc. Finally, it reported the sustainability of the business and positive and negative externalities from the production and consumption of Apple.
The Business and Competitive Environment
Apple Inc. is a manufacturer Multinational Corporation also known as Apple Computer Inc. situated at Cupertino, California in United State. It offers MAC OS System, corporate Server and develops electronic appliances such as smart phones, personal computer and computer applications. Steve Jobs named it Apple Computer Incorporated in 1977. Apple Inc. is one of the most profitable markets in the smartphone industry and provide employment to 115,000 employees (Yu, 2015). Now Apple Inc. has 453 retail stores in 16 countries and serves 120 million customers in the last quarter of 2014 (deAgonia, 2015). The annual total revenue of Apple Inc. places at $234 billion in 2015 on the ending of fiscal year. (Villapaz, 2015).
2.2: Customers and Competitors
Market segmentation is a procedure that supports to find out the target market and divide the target market into different sections. Segmentation of target market can be categorised in four parts: geographic, demographic, psychographic and behavioural (Kotler, Roberto & Lee 2002). Target market of Apple is teena...
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...g orders, the need of labour can be fluctuated. All costs on material used in production, wages, and utilities of Apple Company are variable costs.
Retail Costs-Retail margin and retail operating costs (ROC) are key element of retail costs. ROC costs are linked with IT system, billing and revenue collection.
Macro business environment
Apple is investor’s favourite brand because of high return on investments and strong revenue growth. It is reported that the total revenue was $ 224.34 billion on 30th of June, 2015. In second quarter of 2015, sales were $50.77 billion and predicted sales are 233.02 billion in the current fiscal year. The profit margin was 21.52 in the second quarter of 2015 (Makos, 2015). To gain a deep understanding about the stability of political, social and technological system and economic situation of Apple, PEST analysis is a best approach.
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