Market Structure of Apple Company
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Added on 2021-05-30
Market Structure of Apple Company
Added on 2021-05-30
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Running head: ECONOMICS ASSIGNMENTEconomics assignmentName of the student:Name of the University:Author note
ECONOMICS ASSIGNMENT1Introduction:Apple is one of the largest brand in the world that has been producing outstandinghandsets since decades. There has been legacy from the brand that it comes with newer modelsevery year to amaze their customers (Amatulli et al., 2017) . Though the brand is one of thelargest brand in the US market it has faced tough competition in the Asian market, where themarket is flooded with different brands. With the dipping market share of the brand with theirolder version of the apple mobile, the brand has introduced its anniversary version apple x duringthe year 2017, in the month of November to entice the market demand again (Angeren et al.,2017). With the appearance of the newer model, the brand is now facing higher revenue, eventhough there has been consecutive fall in the market demand. This has attracted a lot of eyes toanalyze the phenomenon for the apple in order to ensure, how the brand has really enticed themarket demand. Under this situation, this essay is aimed to analyses the market structure of theeconomy and trace how the brand has performed during the recent days to enhance its revenue. Market structure of Apple Company:Apple is considered as one of the innovative and ever evolving brand in the world thatcomes with the newer models every year in order to entice the market demand. Presently thebrand is actively operating in the US and EU market, however, with rising share of the market inthe Asian region it is penetrating the newer market too (Wellin, 2016).
ECONOMICS ASSIGNMENT2Figure 1: Oligopoly market structure of AppleSource: (Stiglitz & Rosengard, 2015)Figure 1 depicts the oligopoly market of the Apple, and from this, it can be seen that thedemand curve for the Apple is kinked due to the different elasticity of demand at differentmarket. For US market, it is inelastic region, which is the upper part of the demand curve and thelower section is elastic region that represent the demand of the regions like china and India.Considering the case of the US market, it can be definitely pronounced that the firm is themarket leader in the region with 44% market share that makes it inelastic good for the people ofthis place. However, there are several brands operating too that makes the market an oligopolymarket. Seeing the case of the Asian market, it can be seen that the firm operates in oligopolymarket, where large number of sellers operate in the industry. China, being the largest market forthe mobile phones, has more than seven players who sells outstanding handsets. Though themarket share of the apple in the china is considerably low, it has fair amount of sale (Paniagua &
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