Factors Affecting Demand and Market Equilibrium for Apple Inc.

MANAGEMENT
ECONOMICS-1

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Overview of the selected organization and its essential products & services.........................1
2. Identify the factors which affect demand and market equilibrium..........................................3
3. Evaluate that how price elasticity of demand influence the products and services.................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Managerial economics is described as the procedure of amalgamation of different economic
principles within the market activity and service in addition to making cleaner and more effective
decisions and to make successful planning by top management (Brouwer and van der Heide,
2012). In other words, management theory is linked to the application of economic concepts and
analytical reasoning to the problems of making rational management decisions. The key role is to
enable scarce resources such as labour, capital and land to be used more productively. This has
gained traction among businesses in the modern period because it promotes the management of
full financial records so that specific market targets can be met, effective plans are formulated
and correct prices are set.
For the better understanding of managerial economic concepts Apple Inc. Selected and it
includes the numerous economic elements such as demand and supply variables, cost estimation,
pricing and industry policies are addressed. Therefore, variables are being elaborated that can
affect the elasticity of demand & supply in the sense of the selected company.
MAIN BODY
1. Overview of the selected organization and its essential products & services
Overview: Apple Inc. is a multinational technology based company and headquarters is
based in Cupertino, California, U.S.A. The corporation was first founded by Steve Jobs, Steve
Wozniak and Ronald Wayne in 1976. Apple Inc. is known for their revolutionary concepts and
online selling of Smartphone, mobile gadgets, streaming services and goods (Apple Inc, 2020).
In July 1976 the firm introduced Apple, which was a regular chipset computer and particularly
post-assembled compared to other computers of that time. The firm has a range of devices, such
as iPhone, Air Pods, portable earphones, iPad tablets, smart TVs and watches, making it the
world's bestselling brand. Apple's products are innovated through recognizing customers '
expectations and desires cantered on individual experience and technology growth, contributing
to customer loyalty and on the expected quality of the company that satisfies the customer's
requirements.
Range of products and services company offer:
Particular iphone range manufactured by Apple Inc. has been chosen to complete the
study, which is reportedly the most widely used device worldwide (Keller, 2015). New phone
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series i.e. iPhone 11 and iPhone 11 Pro/11 Pro max have been developed and released in the
current time business. Users of Smartphone are increasingly growing, contributing to a rise in the
market share value for the mobile industry. Technological developments in this sector are very
rapid, as numerous telecom providers are launching a new collection of Smartphone within 2
weeks. It has been decided that Apple is one of the top Smartphone firms worldwide because it
has achieved tremendous success in the United Kingdom, US, Asian and European countries.
The accompanying figure indicates the market share of Smartphone’s in various businesses and
the volume of Smartphone available for sale. Below mention graph and data provide better
understanding of tip Smartphone’s market shares.
Quarter 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1
Samsung 23.5% 21.0% 20.3% 18.8% 23.0% 23.0% 21.8% 18.8% 21.2%
Huawei 11.8% 15.9% 14.6% 16.2% 18.9% 17.7% 18.6% 15.2% 17.8%
Apple 15.7% 12.1% 13.2% 18.3% 11.8% 10.2% 13.0% 19.9% 13.3%
Xiaomi 8.4% 9.5% 9.5% 6.7% 8.9% 9.7% 9.1% 8.9% 10.7%
vivo 5.6% 7.9% 8.3% 6.9% 7.4% 8.6% 8.4% 7.7% 9.0%
Others 35.0% 33.6% 34.1% 33.1% 30.0% 30.8% 29.1% 29.5% 28.0%
TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
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