Current macroeconomic topic on the iPad

Current macroeconomic topic on the iPad
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Introduction
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.<...