Effect of Macroeconomic Variables on Supply And Demand of Apple’s Products

Running head: ECONOMICS FROM A BUSINESS PERSPECTIVE
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Effect of Macroeconomic Variables on Supply And Demand of
Apple’s Products
Memory Mtambo
University of Canada West
Lecturer
MBF 504: Economics from a Business Perspective
16th September 2018

ECONOMICS FROM A BUSINESS PERSPECTIVE
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Table of Contents
Introduction:..............................................................................................................................................3
Sales:...........................................................................................................................................................3
Macroeconomic variable trends:..............................................................................................................4
Impact on Supply and Demand:...............................................................................................................4
Effects of monetary and fiscal policies: ..................................................................5
Conclusion: ...................................................................................................7
references: .....................................................................................................8

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Introduction:
Apple Inc. is an international company whose headquarter is
based in California. The company is a global operation that ships finished
products and component around the world. Apple Inc sells its products to
the small and medium sized businesses including learning institutes, mobile
network service providers, governments, and retail outlets. Apple Inc.
manufactures products in four lines which include computing hardware and
software, iTunes store, watches and mobile devices. The products that the
company sells include iPods, Mac, iPads, Software, iPhones, accessories,
iTunes, and watches. It also sells digital content and applications via App
store, Mac App Store, iTunes Store, and iBooks Store (Inc., 2014). The
following paper will entail the effect of macroeconomic variables such as
gross domestic product (GDP), inflation and unemployment on supply and
demand of Apple’s products. The paper will also discuss how current
monetary and fiscal policies in the United States affect the demand and
supply of the corporation’s merchandises. Lastly, the study will describe how
both macroeconomic variables, as well as monetary and fiscal policies, affect
Apple’s performance.
Sales:
Statista (2018), show Apples income increased from $ 8 Billion in 2004 to 229 in 2017
with 216.76 million phones being sold. The iPhone alone accounts for about 70% apple’s total

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revenue. According to Haslam (2018), macworld results for the 3rd quarter of 2018 show a
revenue increase of 32%.
Macroeconomic variable trends:
Focus economics (2018) shows the trend of macroeconomic variable for US
economy. Data extracted for 2014 to 2017 is as shown in the table below.
2015 2016 2017
GDP($bn) 18.121 18.624 19.391
Unemployment 5.3 4.9 4.4
Inflation 0.1 1.3 2.1
According to the 2008-2018 US inflation calculator, the inflation rate in the US as at July
2018 was at 2.9%. The trend suggest that there the unemployment rate has
reduced but inflation rate has increased over the past three years. The level
of unemployment has reduced from 5.3 in 2015 to 4.4 in 2017. The
implication is that the government is working to reduce the unemployment
rate in the United States. This aspect shows the strengthening of the
economy and implies that there would be strong markets.
Impact on Supply and Demand:
Ideally with the increased and rising Gross Domestic Product over the
past three years, the consumers demand is supposed to improve since an
increase in Gross Domestics Product promotes consumers purchasing power
and their wellbeing. Additionally, the supply of the iPhones is supposed to