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Micro Economic Analysis Paper

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Microeconomic analysis of Apple Veronica Ionescu Southern New Hampshire University Introduction Microeconomics is analysis of individual firm or market and their price mechanism. In this paper I would analyze iMacs and their price mechanism. Supply and demand determine the price of iMacs. Decision maker should understand many important factors. The basic of demand and supply and the workings of the price mechanism, how to analyze production costs, the importance of market structure, the relevance of market structure to business strategy, trade and the competitiveness in the global economy. Abstract My individual microeconomic analysis paper should respond to the following prompt: Assess how microeconomic variables impact (1) your …show more content…

is an American multinational technology company located in Cupertino, California. Apple was founded by Steve Jobs, Ronald Wayne and Steve Wozniak on April 1, 1979 to design, develop and sell personal computers. Steve Wozniak hand-build the first computer (Apple computer 1) and Steve Jobs had the idea to sell it. On March 19, 2015 Apple (NASDAQ: APPL) joined the Dows Jones Industrial Average as Apple reported Apple Inc. designs, develops, and sells online services, computer software and electronics. Macintosh was introduced in 1984 and was an expensive computer. Being expensive it was difficult to dominate in a competitive market, but they still found success in education and desktop publishing. Today, Apple is the leader in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s software platforms are iOS, OS X, watchOS, and tvOS, they also have an App Store, Apple Music, Apple Pay and iCloud. “Apple’s 110,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it” (Apple Press Info - www.apple.com). I totally agree that they are very dedicated and competitive in a market that is already saturated with electronics, smart phones, tablets, TV’s and different online …show more content…

“The Company posted record quarterly revenue of $75.9 billion and record quarterly net income of $18.4 billion, or $3.28 per diluted share. These results compare to revenue of $74.6 billion and net income of $18 billion, or $3.06 per diluted share, in the year-ago quarter. Gross margin was 40.1 percent compared to 39.9 percent in the year-ago quarter. International sales accounted for 66 percent of the quarter’s revenue.” (Apple Press Info – www.apple.com). Assuming the price drops on an iMac, the quantity demanded will rise and the quantity supply will fall. Apple is not lowering the prices on their iMacs and there is not doubt that supply will fall. If Apple cut prices on it’s iMacs, its not possible to know exactly what would happen to Apple financials, but demand will rise, cost will decrease too, as Apple would be in a better position to negotiate the production costs, and they can produce the iMac faster then usual. Elasticity tells us a lot about demand and supply. Would Apple like to increase their iMacs sales? I think they do, but there is a problem with the demand. They have problems archiving a supply-demand balance. In my opinion, Apple is a very powerful brand and lowering the price is not a great

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