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Microeconomics of Apple - Doc

   

Added on  2021-06-15

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Data Science and Big Data
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Running head: MICROECONOMICSMicroeconomicsName of the studentName of the universityAuthor Note
Microeconomics of Apple - Doc_1

1MICROECONOMICSTable of ContentsPart 1:.........................................................................................................................................2Part 2:.........................................................................................................................................3Part 3:.........................................................................................................................................5References:.................................................................................................................................7
Microeconomics of Apple - Doc_2

2MICROECONOMICSPart 1:According to the New Straits Times, a leading newspaper of Malaysia, AppleCompany is going to be the first US$ 1 trillion publicly listed company of the U.S. However,due to Amazon.com, the second largest listed company of this country, Apple Company maynot hold this position further in future (BNN. 2018). The specified company has started itsjourney from a garage in 1976 and consequently has earned huge amount of revenue byselling iPhone and other Apple products (Margulis and Galli 2018). On May 10, 2018,market capitalism of this iPhone seeling company has made a record US$ 934 billion whileits last week buyback budget has remained US$ 100 billion (NST Online 2018). Moreover,Berkshire Hathaway of Warren Buffett has increased its stake in Apple. On the other side,Amazon, with its market value at US$ 780 billion, may surpass Apple very soon. It is alsoessential to notice that the stock price of Amazon and their sales have increased more quicklycompare to that of Apple. Hence, stock of Amazon has become more demanding with morethan 100 times expected earnings while Apple’s stock has traded 15 times earnings with moreprofits but slower growth. After introducing iPhone X, stock of Apple has increased by 24%for the last one year (U.S. 2018). However, demand for this particular gadget has negativelyinfluenced investors and consequently, stock market has focused on Apple’s decision toreturn cash to its shareholders. On the contrary, stock of Amazon has increased by more than70% during last 1 year and this in turn has boosted up revenue growth of this company by31%. The chief reason behind this consequence is that, more people have shifted their buyingpattern and have started to prefer online purchases. In addition to this, other strong competitorof Apple and Amazon, which is, Google owner Alphabet, has also played a significant role inthe market. With US$ 765 billion, the company has become the third largest marketcapitalism in the U.S followed by Microsoft.
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