7 pages/≈1925 words
Mathematics & Economics
Current macroeconomic topic on the iPad (Essay Sample)
*without cover page and citation. Develop a 7 page paper (double-spaced in normal font and size) around a current macroeconomic topic / event from during this SUMMER quarter. Begin with your underlined THESIS STATEMENT and finish with your CONCLUSION. In EACH successive PARAGRAPH, apply as many separate principles or theories as possible from the course content which relate to your chosen topic. Show how they are important, by thoroughly explaining the underlying macroeconomic analysis and how they operate. source..
Current macroeconomic topic on the iPad
Macroeconomic factors affect consumer spending on iPads, which in turn affects sales revenue. Nowadays, Apple Inc is in the forefront of producing innovative technology in the computer, electronics and handset markets. In 2010, the company unveiled a new device the iPad tablet. The iPad is a touch screen device that operates on the iOS same operating system of Apple’s handsets and smartphones. The device is the most popular in the tablet market with the Samsung Galaxy versions being a second. This is unlike the iPhone, which suffers stiff competition from many handset manufacturers.
Macroeconomics and business
Macroeconomic factors affect the national economy of a country while microeconomic factors affect each firm. Macroeconomic factors are external issues beyond a firm’s ability to control them and mostly relate to the level of interest rates in an economy, inflation and factors affecting economic growth. Following the recent global financial crisis of 2008, business leaders are keen to understand the behavior of customers during recessions and the manner in which other economic variables affect business. Ultimately, an increase in the demand of iPad, results to more increased revenue for Apple and possibly the rise in both iPad’s market share and stock price. In any case economic growth of a countries leads to increased demand for the iPad especially in the emerging world.
The iPad and macroeconomics
The sale of the iPads depends on the economic situation in many countries although the device is a premium product. Following the global recession, many consumers became more prudent in their spending habits and this may undermine the products sales if other major recession occurs in the near future. Consumers in North America and Western Europe may not be price sensitive like those in the emerging markets, but iPad’s revenue growth depends on the growth of these new markets. Thus, consumer expenditure is a major determinant on increased revenue sales for the Apple iPad device. The move towards adoption of the iPad mini in favor of the iPad in the emerging market is an indication of price sensitivity among buyers in this market.
North America is the traditional market of the iPad, but sales exports are increasingly becoming an important component of the sales revenue. Thus, global economic conditions may prevent Apple from meeting their revenue targets as credit markets become tight together with reduced worldwide consumer spending. Equally, the strengthening of the dollar in recent years may eventually have a negative effect on the company’s revenue. This typically occurs because the company raises the price of the iPad in the international market when the dollar increases in value. With the advent of globalization, consumers tend to be more aware of global economic conditions, which then influence their spending habits.<...
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:
- Math QuizDescription: Mathematics and Economics Essay: Math Quiz...2 pages/≈550 words | No Sources | Other | Mathematics & Economics | Essay |
- Supply And Production Costs: Explicit And Implicit Costs Of ProductionDescription: Normal profits are another example of the implicit costs as they represent the minimum payments to keep the owner self-employed. ...2 pages/≈550 words | 1 Source | Other | Mathematics & Economics | Essay |
- Market Structure and the Role of Government Economics ResearchDescription: Perfect Competition: A perfect completion denotes a marker structure where many small firms are competing against one another....3 pages/≈825 words | 1 Source | Other | Mathematics & Economics | Essay |