Management Economics: Market Analysis of Apple Inc.

This article explores the market analysis of Apple Inc. in the field of management economics. It provides an overview of Apple's products and services, analyzes the market structure, and discusses the characteristics of previous and current market structures. It also offers suggestions on lesser or greater interventions of government upon key operations of Apple Inc.

Management Economics

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
1. Overview of Apple’s, with descriptions of products/services..............................................................3
2. Market Analysis of Apple Inc..............................................................................................................4
3. Characteristics of previous and current market structure of Apple Inc................................................7
4. a) Critical analysis on various market structure for identifying optimal structure for Apple Inc.........8
4. b) Suggestions on lesser or greater interventions of government upon key operations of Apple Inc.. .9
CONCLUSION...............................................................................................................................................9

INTRODUCTION
Management economics is characterized as the process of amalgamating diverse financial
concepts inside the commercial enterprise and procedure in addition to making cleaner and more
effective decisions and to also achieve important preparation by top executives. In broad terms,
business theory is linked to the application of economic concepts and experimental investigation
to the problems of making rational business decisions (Ben-Daya, Hassini and Bahroun, 2019).
The primary function is to enable scarce resources such as labor, capital and ground to be used
most productively. In modern times, it has increased in popularity among businesses as it helps
to handle all customer information so that legitimate business targets can be accomplished,
effective policies are presented and suitable price are fixed. Important analysis of Apple Inc. is
explored in this article, or the in-depth awareness of this organization's successful and
unsuccessful background is documented under that same venture. The essence of the market also
consistently determines, in forms of monopoly and oligopoly. Recommendations for less or
stronger government interference are also explored in order to identify effects on the economy.
MAIN BODY
1. Overview of Apple’s, with descriptions of products/services
The organisation was originally founded by Steve Jobs, Steve Wozniak and Ronald Wayne
in 1976. Apple Inc. is popular for their revolutionary design and internet sales of smartphones,
mobile devices, digital services and goods. In July 1976 the company introduced Apple 1st,
which was generic chipset software and legal capacity-assembled compared to other systems of
that time. The company has a range of items, including such iPhone, ipad tablet computer, Air
Pods, integrated ear pieces, smart TVs and devices, making it the world's top grossing brand.
Apple's products are revolutionary by acknowledging customers' needs and desires related to
human actions and technological growth. Thanks to their innovative and unique way of doing
things, Apple has seen tremendous improvement over the past 7 years. Apple has created a range
of outstanding products with innovative quality and features, by technology improvement. Apple
Inc. has taken positive steps in widening the purpose of information engineering within digital
technological advances. This development also caused its few rivals to grow and to thrive with
appropriate competition in the industry. Its goods and services have included iPhone, iPad,
Laptop, iPod, Apple Watch, Apple TV, customer and technical optimization techniques

collection, iPhone OS (iOS), OS X and watchOS software applications, iCloud, Apple Pay and a
variety of gadgets.
Specific smart phones produced by Apple Inc. have been chosen to complete the study,
which is currently the most widely used device worldwide. New Smartphone sequence i.e.
iPhone 11 and iPhone 11 Pro/11 Pro max have been created and released in the specified time
business. Consumers of smart phones are increasingly growing, contributing to a rise in the
market cap for the Smartphone world. Advances in technology in this sector are very sudden, as
numerous wireless carriers are launching a new range of Smartphone’s within 2 weeks. It has
been decided that Apple was one of the top Smartphone businesses in the world as it has gained
huge following in the United Kingdom, the United States, Asian market and European
(Białowąs, 2018).
2. Market Analysis of Apple Inc.
Specific market dynamics such as oligopoly and monopoly rivalry may be regarded.
Apple Inc. retains oligopoly market dominance in the mobile updates rivalry, but Apple Inc. is
regarded in the branded computers as monopolistic market. Monopoly rivalry where a large
number of sellers manufacture highly differentiated goods. Monopoly rivalry is sometimes called
monophonic rivalry. Monopolistic competition defines the global market as parallel and peering
with the supply side of the monopoly market. Some analysts predict that monopoly rivalry is
more probable than perfectly competitive because of interdependent (non-homogeneous) goods
generated by the competitors. Imperfect competition does not work under based on strict
perfectly fair practices. In this business environment of imperfect competition, the company
enjoys the luxury of price rises to maximize profit. Apple Inc. is selling the dis-identical software
(Bresciani, Ferraris and Del Giudice, 2018). That helps them to compete quickly and
productively in the business. Compared to oligopoly, there are more rivals in the monopoly
market, and the "mega laptop" device for the apple is regarded a monopoly market. Several other
marketed software firms, such as Samsung, HTC and Dell, are major rivals that share a global
market for smartphone and desktop devices. The sales profits made by these rival suppliers are
similar enough though to Apple Inc. which maintains itself competitive. Efficient business of an
imperfect kind, as the term ensures, competitive industry of imperfect nature. The company
selects oligopoly market structure and presents their characteristics such as:

 This method requires a lot of manufacturers and a lot of customers. For instance, the
proportion of industry's economic revenue earn on the corporate market by very few
substantial dealers.
 People purchase non-price variations between the goods of the rivals, i.e. there is
differentiation of the commodity. There is intense competition in the non-price market.
 Manufacturers have quality power-they are not "demand free loaders" but the "market
makers." This price advantage gives the company a chance to utilize its economic times.
 Entrance and exit obstacles are small. There are no barriers to accessing the competitive
industry unlike monopoly. This implies that the extrinsic short-term profit will attract
other suppliers into the branch of business, and in the longer term only ordinary money
was made (Chudy and et.al, 2019).
 Apple Inc. carries out autonomous operation and conducts. In the competing products
there is the idea of equal number of times.
 The goal of all companies is to raise their income over a period of time. And by
purchasing these businesses the consumer seeks to optimize healthcare.
Companies in Handset industry:
2018
Q1
2018
Q2
2018
Q3
2018
Q4
2019
Q1
Samsung 22% 20% 19% 18% 21%
Apple 14% 11% 12% 17% 12%
Xiaomi 8% 9% 9% 6% 8%
Oppo 7% 8% 9% 8% 8%
Motorola 2% 2% 3% 2% 3%
Huawei 11% 15% 14% 15% 17%
Vivo 5% 7% 8% 7% 7%

Others 31% 31% 28% 27% 24%
Revenue share in handset industry: Profits decreased 11 percent to USD 12 billion in Q3 2019
due to a higher mixture of top - range entrance items and sales declines for main smart phone
OEMs. Only Samsung and Huawei have agreed to boost their sales annually inside the top ten
labels. In comparison, the product period for smart phones has been extended as new base
improvements have struggled to offer a compelling justification for upgrading. Apple controls
the international market for handsets by securing 66 percent of business sales and 32 percent of
global smart phone revenues (Darayseh and Chazi, 2018). The loyal higher price customer base
in key markets such as the USA, the EU and Japan is among the purposes Apple can still
function at such a company's profitability that its competition could only desire for. Here with a
powerful strategy formulation, the total environment of Apple is powerful enough just to
maintain a good income flows in the years to come. It assume Apple's income for the holiday
season will improve in the coming years with the current style of iPhones receiving successfully
undergone.

3. Characteristics of previous and current market structure of Apple Inc.
The Apple Inc. use oligopoly market structure in previous time period but in present time
they are using monopolistic structure. As for Apple, as well as the monopoly, in which a
business faces no competitors or oligopoly where there are fewer competitors, it deals in a
monopolistic competitive market. This regulatory framework displays a number of competitive
producers selling similar goods, but not identical ones, as well as allowing free entries and exits.
Consequently, it was analyzed that it would prove optimal way for Apple to market expansion
only in monopolistically competitive market (Gálvez-Martos and et.al, 2018). It will offer this
firm the chance to enhance long-term market control and leadership pattern for each of its
consumer products, in order to provide continuous growth in the technology sector. There are
mentioned the characteristics of the oligopoly market structure that follow by the Apple in
history such as:
Few firms: There are a few big firms large companies Oligopoly and although accurate majority
of enterprises is ambiguous. There is also intense rivalry, as a large proportion of total
production is produced by each company. The total number of companies involved in an
oligopolistic industry is not really the critical factor. In fact, an oligopoly company can have a
wide range of businesses, reaching that of any monopolistically highly competitive market. The
distinguishing characteristic, even so, is that some of the companies are significantly larger when
compared to the size industry. For instance, a given company with a thousand firms is regarded
oligopolistic when the five top companies produce half the current output of the business sector.
Barriers to entry: Under Oligopoly, a company can in the long run earn supernormal profits as
there are barriers to entry such as patents, licenses, control over crucial raw materials, etc. Those
obstacles preventing firms from entering the sector. Exit barriers are also the key feature which
differentiates oligopoly from monopolistic market on the dimension of business models.
Companies may join a monopolistic tendencies competitive environment with very few, if there
are any, barriers to trade if established businesses earn economic benefit (Jovanovic, 2018). This
decreases the power of every specified company's industry. Even so, with significant barriers to
trade discovered in oligopoly , firms are unable to leave the workforce as painlessly as possible
and therefore incumbent companies preserve higher market authority.

Non price competition: Because of worry of predatory pricing in Oligopoly, companies prefer
to avoid market competition and therefore rely heavily on price - based methodologies such as
marketing, out-sales services, warranty coverage etc. This means businesses are able to affect
competition and create brand awareness
Interdependence: Under Oligopoly, since a few companies have a significant share of the
industry's total output, each company is affected by the rival companies' price and output
decisions. Hence, in an oligopoly there is indeed a lot of interconnectedness between firms.
Consequently, a company takes into consideration the activity and response of its rival
companies even when assessing their profit maximizing amount (Khalilzadeh and Wang, 2018).
4. a) Critical analysis on various market structure for identifying optimal structure for Apple Inc.
The structure of the market can be determined by the organization and key characteristics
of objects region in which a company does business. Good market, monopoly, oligopolistic and
monopolistic rivalry, it can be generally divided into four key classes according to
competitiveness and price degree. Hereby, the oligopoly market has been described as an
environment where only a few corporations have a role as people earn, although only one
company has the ability of becoming the same inside monopoly markets. Perfect competition
market, on the other hand, shows various firms behaving as price-takers, while monopolistic
companies demonstrated certain organizations' willingness to have competitive control. Inside
the technology industry, a range of businesses contend with one another to fulfill the very same
consumer demand i.e. get anything delicious and nutritious along with fast delivery. So each
restaurant used to sell distinguishing and differentiating items to meet either more some or the
entire request. As consumers in the technology industry prefer going in company offering quick
services with delicious products, rather than close information (Kumar, Swain and Bhadoria,
2018). Consequently, when big companies give contending and unique features inside the
technology industry, then, in the personal view of economic experts, it has regarded companies
as merely distinguishing their product lines from everyone else.
Inside the tech sector, a range of businesses contend with one another to meet the needs
of customers, i.e. get something new and creative, alongside faster customer attracting service.
But each company used it to provide identical and distinctive goods to meet less requirements or
more. In technology industry, they seek to draw prospective consumers who want to move into

business that offers magnificent goods and services with affordable creative & services, rather
than unparalleled possible ideas.
4. b) Suggestions on lesser or greater interventions of government upon key operations of Apple
Inc.
Intervention by the government is better as corporations can leverage on their capacity to
afford poor wages for employees and demand higher rates for consumers. Government action
will control the monopoly power, and promote competition. Economic action would also
promote greater equality in employment and is seen as fairer. Government can aid in policy
making and implementation, establishing the optimal price point for the specific commodity, so
that businesses cannot demand higher prices to increase their profits by trying to take advantage
of individuals. In addition, public law mandates an average monthly wage requirement to
discourage discrimination in the workplace (Latilla and et.al, 2018).
A Globe and Mail company reporter comments point out that one of primary reasons for
Apple's success is innovation which has been financed by the united states government. Apple
devices such as the iPhone or iPad rely on taxpayer owned new tech such as the battery pack or
laser projector. Educational Mariana Mazzucato also made that point in a conversation in which
she spoke about how key government focus on innovation is for the economic system. What the
boston globe essay also comments pointing out is that while apple makes the United States
government to invest in public expenditure, the don't want to charge for that too. Apple has in
reality are becoming famous for the use of tax shelters. Apple wasn't alone in seeking the
rewards of government expenditure while paying extra for it, as a 2013 People for Tax Justice
study pointed out. The report found 17 other Fortune 500 firms for whom the overseas earnings
emerged to be in tax shelters, and probably thousands more firms likely to want to use tax
shelters. This should come as a shock to us. The hand-off method to the economic system
suggested by adversaries of a new manufacturing strategic plan ignores the impact of community
expenditure and the reality there are financial repercussions even if we're not trying to collect the
taxation that are required to support public goods and services (Marchese and et.al, 2018).
CONCLUSION
From this overall analysis, it was concluded that management of the economy is the crucial
thing that lets a business make the best choice by evaluating its economic condition on the

competition in a reasonable time. To forecast future success, businesses can introduce different
concepts of management markets such as financial data, market dynamics, current and prior role
etc. they can select their business' desired competitive structure. Therefore, in connection with
this study, it was rendered on the handset industry, by investigating the matter in this chosen
sector, it was analyzed that member companies in either financial circumstances gain
opportunities for additional corporate development.

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