Eco 365 Week 3

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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 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 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...
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