Eco 365 Week 3 Current Market Conditions
Current Market Conditions and Competitive Analysis
University of Phoenix
ECO 365
Apple Incorporated is a large American company who produces electronics for many consumers in the last several decades. The company is most known for the Macintosh personal computer line, Mac OS X, extremely loyal user-base, iTunes media application, and the iPod personal music player. The company headquarters is in Cupertino, California, CEO, and co-founder is Steve Jobs, and the company has more than 284 retail locations in more than 10 different countries. Apple is establishes by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1st 1976. It was to sell the Apple I personal computer. Steve Jobs recognize he owns 45% of the company, Steve Wozniak …show more content…
owns 45%, and Wayne owns 10%. Jobs and Wozniak are younger and have no assets, but Ronald Wayne is older with personal assets, and worries to put these at risk. Therefore Wayne’s worries result in hia selling his share of the company back to Jobs and Wozniak for a report of $800.
Today Wayne’s share is worth three billion dollars. Apple creates an exceptional status in the consumer electronics industry. Customers who use Apple electronics are likely to be eager about and loyal to the products whereas those who have no experience with Apple’s products usually criticize the company as expensive (Dougherty, 2010). In 1991 the company introduces the Powerbook, a portable MAC,which placess the standard for the modern, ergonomic laptop, and in 1993 launches first consumer device, the Newton, an PDA. In 1994 the company made available its Power Macintosh line, which incorporates IBM’s high-performance PowerPC processor. IN the late 90s the iMac creates, and its sleek, transparent body reflects Apple’s growing importance on design and aesthetics. Today, Apple continues its innovative and successful line of products. Apple Stores serve the U.S., Asia, and Europe, and offer the latest Apple products to customer support through the company’s Genius Bars. The iPod is a portable digital music player is very popular with customers, and Apple’s newest consumer product, the revolutionary iPhone, provides revolutionary phone, video, and Internet capabilities (Silicon Valley …show more content…
Historical Association, 2008). Apple reveals its release of its new product, the iPhone 5. It is said to be an extremely slim design that still makes room for a larger display and a faster chip. It will have an ultrafast wireless that does not affect the battery life, and have new headphones intent to sound clear and fit comfortably. The put so much into this new iPhone to make consumers satisfied. Apple’s history has been ground-breaking, but its future seems to be even more promising (Apple, 2012).
There are several factors that can affect the demand, supply, and equilibrium prices of the iPhone 5. The iPhone has come a long way from its original debut. The technology the iPhone first used has changed and along with those changes so has the price. When the phone first was introduced it cost about $500, depending on the memory size and in some cases the color of the phone. Originally the phone did not sell as fast as Apple thought it would. The demand for the phone was low so Apple had a high supply in stock. Apple decided to lower the price to make up for the loss in sales because of a high price. They set the price starting at about $200. Setting the price at $200 was what Apple decided would be their equilibrium price.
The release of the iPhone 5 faces similar issues when dealing with supply and demand.
Because its release, the iPhone 5 sold out within a few hours. Apple used its previous experience with the release of the original iPhone and decided to make the starting price of iPhone $200.
Apple was confident that the use of the iPhone was already popular enough to generate the sales they wanted. The iPhone 5 did better than expected in sales and Apple faces a different issue. The release of the iPhone 5 cause demands with higher expectations, and therefore the supply of the iPhone 5 is short.
Competing smart phone makers will be those affect by the release of the iPhone 5.
The iPhone 5 offers longer battery life than most of the smart phones offered by its competitors.
Apples strategy to only launch one phone as oppose to its competitors who release several phones a year has helped them focus on the technology they use for their product. The technology far surpasses that of its competitors. As a company that mass produces iPhones with an inclusive brand name like Apple, the price elasticity of demand for the newest edition of the iPhone, the iPhone 5 should not affect largely by the height of demand. The demand for the iPhone 5 is extremely high thus far, and it has not sold in retail stores yet, only preordering on the Apple online retail store, and already the sales for the iPhone 5 have set new sales records for Apple (http://www.apple.com/hotnews/
2012). Therefore, in regard to opportunities of competitiveness, no other company could match what Apple has corned in the smart phone market. The Apple IPhone5 sales topped $2 million in the first 24 hours that Apple set up a special pre-sale offer on their online retail store.
(http://www.apple.com/hotnews/ 2012). Meanwhile, the long term profitability depends on many factors, one is the performance of the newest iPhone product. If the IPhone5 fails to perform as
Apple claims it will or the public sees too many failures in the product the long term profitability will be down quite substantially. Technologically speaking, the innovations of the late Steven
Jobs and the Apple brand name are remarkable in their abilities and aptness. Many technologies of the new technological era living in, technology does sometimes fail consumers. Unfortunately for technologically focusing companies such as Apple, if one of the products fail in a big way, a public stigma places on the brand that could have the potential to break an entire company demanding on the severity of the failure in the technologically innovative product. The relationship between the amount of labor and capital employed is a rocky one. There are allegations only a few years ago, Apple’s main contract manufacturer was mistreating the employees in China, which put a damper on the sales at Apple Corporation,
“For its part, Foxconn vowed to cap workweeks at 49 hours, hire thousands of new employees, and improve safety” (PBS NewsHour. March 30, 2012.). However, now with the highest demand ever at Apple for the newest iPhone the employment and labor will be intensive as ever.
Therefore, Apple will most likely force to employ more individuals to make the labor less
Intensive, which will up the labor and employment costs of the company. Initially after Apple hires more employees to cover the labor and production demands there will be a heightened number of productivity. Although after some time passes, productivity of the Apple IPhone5 will decrease and plateau, most likely when the newness of the IPhone5 wears off or another newer edition of the iPhone comes out again. The cost structure of the newest Apple iPhone is pertinent it stays competitive with other smart phone manufacturers in the market. Therefore, if Apple needs to pay more individuals to perform the labor for the new product, the cost of the phone would typically thought as costing more than previous models of the iPhone from Apple. However, if Apple were to charge more for the newest iPhone it would not be as competitively priced as the other latest smart phones currently available from other manufacturing companies. The cost structure for Apple and the new iPhone 5 must include the new labor costs and maintain the newer lower pricing and availability of smart phones. Apple is currently competitive and the long-term profitability of Apple shows a positive outlook for the years to come. Production of a company would include the output of services and goods produced by market businesses. Customers needs and wants create a supply of demand for the production of services and goods. The iPhone 5 is in high demand, and it is not even out on market yet. Apple has produced a phone with intelligence, helpful guidance, easy to use, and quick to the touch. Apple made the iPhone 5 with top-selling qualities so their customers will want to buy it, when it is available on the market. The iPhone, iPhone 4, and the iPhone 4S are already popular but the customers always want what is new to the market and what will be in high demand next. When the market is in high demand for an item so is the businesses labor and labor costs.
Apple is producing an item, the iPhone 5, is in high demand and the increase of labor to produce the product increases.
When a product is in demand, the businesses must keep up on the productivity to meet the customers demand. If Apple does not produce enough iPhone
5’s for the customers it could make the customers upset to wait for an item they have been waiting a long time for already. When determining the fixed costs of the iPhone 5, key ideas are took into consideration such as labor, marketing, location of sale, and supply and demand. Obviously there is a huge buzz around the product already has made available to the public and not in stores yet. Apple has done an extremely well job at making their customers want more and patiently wait for it. Fixed cost variables may be labor costs within the manufacturers to coincide with supply and demand of the product. There is a going to be an expect amount of high-demand for this phone with its sleek new looks and new capabilities as well. Apple will budget accordingly for the amount of labor cost dollars that will be set aside in their factories for the proper amount of phones to create and deliver across the world. Also with the popularity of this brand as well as particular phone,
little to no marketing needs to be complete, any advertising for this product that may be seen can be carefully deliverable and be a fixed cost for Apple. Another major factor that would affect fixed costs would be the location of sale for this product. Although these phones are sold nationwide, cost will not vary for this product. Most companies will consider tailoring the products price to the area it is sold base upon the cost of living there. Apple however will not take this into consideration as their brand is so well-known and highly sought after; cost is not something that varies. References
Silicon Valley Historical Association. (2008). Retrieved from http://www.siliconvalleyhistorical.org/home/apple_computer
Dougherty, M. (2010). Bright Hub. Retrieved from http://www.brighthub.com/computing/mac-platform/articles/65346.aspx
Apple. (2012). Retrieved from http://www.apple.com/iphone/features/ http://www.pbs.org/newshour/bb/world/jan-june12/apple_03-30.html PBS NewsHour http://news.yahoo.com/apple-iphone-5-orders-topped-2m-24-hours-145552913--finance.html Apple News http://www.apple.com/hotnews/ Apple News
University of Phoenix
ECO 365
Apple Incorporated is a large American company who produces electronics for many consumers in the last several decades. The company is most known for the Macintosh personal computer line, Mac OS X, extremely loyal user-base, iTunes media application, and the iPod personal music player. The company headquarters is in Cupertino, California, CEO, and co-founder is Steve Jobs, and the company has more than 284 retail locations in more than 10 different countries. Apple is establishes by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1st 1976. It was to sell the Apple I personal computer. Steve Jobs recognize he owns 45% of the company, Steve Wozniak …show more content…
owns 45%, and Wayne owns 10%. Jobs and Wozniak are younger and have no assets, but Ronald Wayne is older with personal assets, and worries to put these at risk. Therefore Wayne’s worries result in hia selling his share of the company back to Jobs and Wozniak for a report of $800.
Today Wayne’s share is worth three billion dollars. Apple creates an exceptional status in the consumer electronics industry. Customers who use Apple electronics are likely to be eager about and loyal to the products whereas those who have no experience with Apple’s products usually criticize the company as expensive (Dougherty, 2010). In 1991 the company introduces the Powerbook, a portable MAC,which placess the standard for the modern, ergonomic laptop, and in 1993 launches first consumer device, the Newton, an PDA. In 1994 the company made available its Power Macintosh line, which incorporates IBM’s high-performance PowerPC processor. IN the late 90s the iMac creates, and its sleek, transparent body reflects Apple’s growing importance on design and aesthetics. Today, Apple continues its innovative and successful line of products. Apple Stores serve the U.S., Asia, and Europe, and offer the latest Apple products to customer support through the company’s Genius Bars. The iPod is a portable digital music player is very popular with customers, and Apple’s newest consumer product, the revolutionary iPhone, provides revolutionary phone, video, and Internet capabilities (Silicon Valley …show more content…
Historical Association, 2008). Apple reveals its release of its new product, the iPhone 5. It is said to be an extremely slim design that still makes room for a larger display and a faster chip. It will have an ultrafast wireless that does not affect the battery life, and have new headphones intent to sound clear and fit comfortably. The put so much into this new iPhone to make consumers satisfied. Apple’s history has been ground-breaking, but its future seems to be even more promising (Apple, 2012).
There are several factors that can affect the demand, supply, and equilibrium prices of the iPhone 5. The iPhone has come a long way from its original debut. The technology the iPhone first used has changed and along with those changes so has the price. When the phone first was introduced it cost about $500, depending on the memory size and in some cases the color of the phone. Originally the phone did not sell as fast as Apple thought it would. The demand for the phone was low so Apple had a high supply in stock. Apple decided to lower the price to make up for the loss in sales because of a high price. They set the price starting at about $200. Setting the price at $200 was what Apple decided would be their equilibrium price.
The release of the iPhone 5 faces similar issues when dealing with supply and demand.
Because its release, the iPhone 5 sold out within a few hours. Apple used its previous experience with the release of the original iPhone and decided to make the starting price of iPhone $200.
Apple was confident that the use of the iPhone was already popular enough to generate the sales they wanted. The iPhone 5 did better than expected in sales and Apple faces a different issue. The release of the iPhone 5 cause demands with higher expectations, and therefore the supply of the iPhone 5 is short.
Competing smart phone makers will be those affect by the release of the iPhone 5.
The iPhone 5 offers longer battery life than most of the smart phones offered by its competitors.
Apples strategy to only launch one phone as oppose to its competitors who release several phones a year has helped them focus on the technology they use for their product. The technology far surpasses that of its competitors. As a company that mass produces iPhones with an inclusive brand name like Apple, the price elasticity of demand for the newest edition of the iPhone, the iPhone 5 should not affect largely by the height of demand. The demand for the iPhone 5 is extremely high thus far, and it has not sold in retail stores yet, only preordering on the Apple online retail store, and already the sales for the iPhone 5 have set new sales records for Apple (http://www.apple.com/hotnews/
2012). Therefore, in regard to opportunities of competitiveness, no other company could match what Apple has corned in the smart phone market. The Apple IPhone5 sales topped $2 million in the first 24 hours that Apple set up a special pre-sale offer on their online retail store.
(http://www.apple.com/hotnews/ 2012). Meanwhile, the long term profitability depends on many factors, one is the performance of the newest iPhone product. If the IPhone5 fails to perform as
Apple claims it will or the public sees too many failures in the product the long term profitability will be down quite substantially. Technologically speaking, the innovations of the late Steven
Jobs and the Apple brand name are remarkable in their abilities and aptness. Many technologies of the new technological era living in, technology does sometimes fail consumers. Unfortunately for technologically focusing companies such as Apple, if one of the products fail in a big way, a public stigma places on the brand that could have the potential to break an entire company demanding on the severity of the failure in the technologically innovative product. The relationship between the amount of labor and capital employed is a rocky one. There are allegations only a few years ago, Apple’s main contract manufacturer was mistreating the employees in China, which put a damper on the sales at Apple Corporation,
“For its part, Foxconn vowed to cap workweeks at 49 hours, hire thousands of new employees, and improve safety” (PBS NewsHour. March 30, 2012.). However, now with the highest demand ever at Apple for the newest iPhone the employment and labor will be intensive as ever.
Therefore, Apple will most likely force to employ more individuals to make the labor less
Intensive, which will up the labor and employment costs of the company. Initially after Apple hires more employees to cover the labor and production demands there will be a heightened number of productivity. Although after some time passes, productivity of the Apple IPhone5 will decrease and plateau, most likely when the newness of the IPhone5 wears off or another newer edition of the iPhone comes out again. The cost structure of the newest Apple iPhone is pertinent it stays competitive with other smart phone manufacturers in the market. Therefore, if Apple needs to pay more individuals to perform the labor for the new product, the cost of the phone would typically thought as costing more than previous models of the iPhone from Apple. However, if Apple were to charge more for the newest iPhone it would not be as competitively priced as the other latest smart phones currently available from other manufacturing companies. The cost structure for Apple and the new iPhone 5 must include the new labor costs and maintain the newer lower pricing and availability of smart phones. Apple is currently competitive and the long-term profitability of Apple shows a positive outlook for the years to come. Production of a company would include the output of services and goods produced by market businesses. Customers needs and wants create a supply of demand for the production of services and goods. The iPhone 5 is in high demand, and it is not even out on market yet. Apple has produced a phone with intelligence, helpful guidance, easy to use, and quick to the touch. Apple made the iPhone 5 with top-selling qualities so their customers will want to buy it, when it is available on the market. The iPhone, iPhone 4, and the iPhone 4S are already popular but the customers always want what is new to the market and what will be in high demand next. When the market is in high demand for an item so is the businesses labor and labor costs.
Apple is producing an item, the iPhone 5, is in high demand and the increase of labor to produce the product increases.
When a product is in demand, the businesses must keep up on the productivity to meet the customers demand. If Apple does not produce enough iPhone
5’s for the customers it could make the customers upset to wait for an item they have been waiting a long time for already. When determining the fixed costs of the iPhone 5, key ideas are took into consideration such as labor, marketing, location of sale, and supply and demand. Obviously there is a huge buzz around the product already has made available to the public and not in stores yet. Apple has done an extremely well job at making their customers want more and patiently wait for it. Fixed cost variables may be labor costs within the manufacturers to coincide with supply and demand of the product. There is a going to be an expect amount of high-demand for this phone with its sleek new looks and new capabilities as well. Apple will budget accordingly for the amount of labor cost dollars that will be set aside in their factories for the proper amount of phones to create and deliver across the world. Also with the popularity of this brand as well as particular phone,
little to no marketing needs to be complete, any advertising for this product that may be seen can be carefully deliverable and be a fixed cost for Apple. Another major factor that would affect fixed costs would be the location of sale for this product. Although these phones are sold nationwide, cost will not vary for this product. Most companies will consider tailoring the products price to the area it is sold base upon the cost of living there. Apple however will not take this into consideration as their brand is so well-known and highly sought after; cost is not something that varies. References
Silicon Valley Historical Association. (2008). Retrieved from http://www.siliconvalleyhistorical.org/home/apple_computer
Dougherty, M. (2010). Bright Hub. Retrieved from http://www.brighthub.com/computing/mac-platform/articles/65346.aspx
Apple. (2012). Retrieved from http://www.apple.com/iphone/features/ http://www.pbs.org/newshour/bb/world/jan-june12/apple_03-30.html PBS NewsHour http://news.yahoo.com/apple-iphone-5-orders-topped-2m-24-hours-145552913--finance.html Apple News http://www.apple.com/hotnews/ Apple News