StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Impact of Apple iPhone, iPod & Laptops on the US GDP and stock Price - Essay Example

Cite this document
Summary
Apple Incorporated Apple incorporated is a technology-manufacturing firm that is based in the US. The company is responsible for the manufacturing of consumer electronics, computer software, and personal computers such as laptops, desktop computers, smartphones, and music players…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.8% of users find it useful
Impact of Apple iPhone, iPod & Laptops on the US GDP and stock Price
Read Text Preview

Extract of sample "Impact of Apple iPhone, iPod & Laptops on the US GDP and stock Price"

Download file to see previous pages

Moreover, the company is in charge for the manufacturing of iTunes Media Browser, iLife and iWork creativity and production suites (Apple Computer Inc. Web). The company is the third largest mobile phone maker in the world after Samsung and Nokia. The company has also been named to be the most admired company in the United States in 2008 and the most admired company in the world from 2008 to 2012. Apple Inc. is the largest openly traded company in the world by market capitalization. The company has an estimated value of $626 billion listed in the New York Stock Exchange.

This means that market capitalization of the company is larger than that of its competitors, Google and Microsoft put together. The company’s worldwide annual revenue amounted to $65 billion in 2010, which have grown to $156 billion in 2012 (Foremski 1). When it was first launched, the iPhone was comprehensively respected that it was dubbed the "Jesus Phone.” However, five years later, its impact is so huge that its latest recapitulation possibly will accomplish the astounding achievement of redeeming the US economy.

The tremendous growth of its iPhone, iPod Touch and iPad products have brought about the large growth of the company. These products introduced innovations in mobile phones, portable music players, and personal computers respectively. . According to economist Michael Feroli of J.P. Morgan consultants, the total sale of iPhone 5 may boost the growth of the economy of the US, gross domestic product, by between a quarter and half a percentage point in the last quarter of 2012. This represents a 0.

33% of the entire US economy. Economist Michael Feroli of J.P. Morgan consultants notes that if the company sells more than 8 million units of the iPhone 5 at a cost of $600 in three months, the total growth of gross domestic product per a unit of phone will be $400. However, $200 dollars of the total amount is taken towards import costs. This figure will translate to $3.2 billion in the last quarter of the year and a total of $12.8 billion for the entire year (Kehoe 2). Being the most admired and accomplished phone maker in the world, iPhone creates a huge demand from it admirers for its products.

The huge demand for its products in turn exceeds the supply that the company can supply to its consumers at a time. This effect creates more speculation of improved performance in the company’s shares. The US economy is mostly dependent on the way in which the consumers spend. The company has created employment opportunities for more than 500,000 people in the country. This figure includes 47,000 of employees who work at apple and 200, 000 people who rely on the apple economy. The sale of apple’s products has the ability to increase share prices, customer expenditure, and the supply chain that involves component makers.

The expected release of apples product creates a market surge, which has a huge effect on both domestic and foreign market. The market surge in turn shifts the stock prices upwards. For instance, the release of the iPhone 5 caused the stock price of Apple company

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Impact of Apple iPhone, iPod & Laptops on the US GDP and stock Price Essay”, n.d.)
Impact of Apple iPhone, iPod & Laptops on the US GDP and stock Price Essay. Retrieved from https://studentshare.org/finance-accounting/1460851-impact-of-apple-iphone-ipod-laptops-on-the-us-gdp
(Impact of Apple IPhone, IPod & Laptops on the US GDP and Stock Price Essay)
Impact of Apple IPhone, IPod & Laptops on the US GDP and Stock Price Essay. https://studentshare.org/finance-accounting/1460851-impact-of-apple-iphone-ipod-laptops-on-the-us-gdp.
“Impact of Apple IPhone, IPod & Laptops on the US GDP and Stock Price Essay”, n.d. https://studentshare.org/finance-accounting/1460851-impact-of-apple-iphone-ipod-laptops-on-the-us-gdp.
  • Cited: 0 times

CHECK THESE SAMPLES OF Impact of Apple iPhone, iPod & Laptops on the US GDP and stock Price

The Impact of Branding on the Growth of Tablet Computer for the UK Market

An investigation into the impact of branding on growth of tablet computer for the UK market Introduction part (2011) Contents Table of Figures 4 List of Tables 5 Photo Credit 5 Chapter 1: Introduction 1 1.... In other words, a tablet PC can be seen as a blend between a mobile phone and a PC that has evolved from consumers' preference for larger and larger mobile phones and smaller and sleeker laptops.... With the release of iPad in April 2010, apple created a revolution of table computers, even though a host of other companies such as Dell Streak, Samsung Galaxy tab, Blackberry PlayBook, HP Tablet, Asus Eee...
25 Pages (6250 words) Dissertation

Competitive Advantage and Cost Leadership Strategy of Apple Inc

The products of apple Inc are sold worldwide through its retail outlets, direct sales, online store, and through third party sellers as well (YahooFinance, 2012).... argaining power of consumers 17 Ratio Analysis 17 Current & Quick Ratio 19 Asset Turnover Ratio 19 price/Cash Flow Ratio 19 Complexity of Environment 20 1.... The company's generic strategy can be discussed below: Competitive Advantage Apple Inc's competitive advantage over its competitors lies in providing high value to its customers which justifies the high price of its products....
20 Pages (5000 words) Essay

Apple Company Analysis

This research is being carried out to evaluate and present the reader with a complete analysis of apple Inc.... Apple's revolution of the digital music distribution came with the introduction of the ipod in 2001 along with iTunes and in 2007, the company expanded its scope of production and entered the smart-phones world when it released the iPhone.... hellip; This research begins with the statement that apple Inc.... Initially, the company was called apple Computers Inc....
10 Pages (2500 words) Essay

Introducing Apple iPhone 3G in the UK

apple iphone in U.... n analyzing apple iphone 3G's penetration to the mobile phone industry in U.... is very steep, the core competencies of apple are based on its drive to help people globally by continuously enhancing, unraveling and discovering new technologies.... Apple is also expecting to offer an entire family iPhones by the early part of 2009, hopefully in lower price (Macworld, 2008).... The price will be between $200 and $300 targeting a more sensitive price of the market....
10 Pages (2500 words) Case Study

Management Portfolio of Microsoft Corporation

Quality and Business (QBE) Program Manager for Microsoft Corporation.... The company's vision statement is as follows: “at Microsoft, our mission and values are to help people and businesses throughout the world realize their… This is the type of company where employees are encouraged to improve, and simply one reason that Microsoft has been able to be a long time industry leader....
6 Pages (1500 words) Research Paper

Tell u later

The major competitors of Nokia are Samsung, apple, LG and Sony.... These companies operate in the Android platform apart from apple.... The increased customers' demand has forced the companies to keep on producing innovative products to gain market share and improve its brand image. Nokia has face severe challenge… Even though windows phones has potential future prospects but currently the market share is only 3% whereas the market share of Android is 80%. The global political framework has put significant effect The company has faced several political issues that have deteriorated its financial position and brand image among its peers....
18 Pages (4500 words) Lab Report

Concerns and Disadvantages of Having Large-Scale Online Organisations

Launch of the product, an IPO, the news about the latest technological innovation, development of the most advanced software ever known to man, or the sad passing of a CEO (Steve Jobs of apple Inc.... The words coming out of their mouths directly impact the stock market.... he tech giants like Apple, Google and Samsung have revenues exceeding the gdp of many countries.... At the table, the old newspapers have been replaced by laptops, tablets, and smartphones....
7 Pages (1750 words) Essay

The Current Human Resource Practices Used by Apple Inc

In 2007, the introduction of apple iphone revolutionizes the Smartphone market across the world.... Moreover, the target markets of apple Inc are the middle-upper-class business people and the students of the college, university, and high school.... Mac OS X, ipod music player, iTunes media application and extremely reliable user-base (Terrell, 2008).... hellip; The introduction of iphone 6 plus considered as the biggest expansion in the history of iphone....
8 Pages (2000 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us