PERFORMANCE PROFITABILITY.

Running head: PERFORMANCE PROFITABILITY 1
Performance Profitability- Evaluation Criteria
Student
Institution

PERFORMANCE PROFITABILITY 2
Apple Inc.
Incorporated in 1977, Apple operates in a highly competitive mobile design industry
where it faces stiff competition from Samsung, Black Berry, Microsoft, Sony, Lenovo, and Dell
just to mention a few (Nathaniel, 2019). Apple encounters various trade policies and economic
variables that impact its global operations. For purposes of business policy and formulation,
Apple has hired an economic analysis.
The trade policies that impact on Apple’s global operations range from the US-China
trade war and Trump’s tariffs, taxation laws, and tariff imposition on its products across borders
(Witney, 2016). It is important for the CEO, CIO, CFO, and CTO of Apple to note that the
proposed $200 billion tariff by Trump on China would adversely affect its profitability and
growth in China (Apple, 2012). Also, the fact that Apple operates in different countries exposes
it to a threat of varied taxation policies on its income, and this should be factored into major
decisions especially by the CIO and the CFO. The Trump tariffs have a great potential to force
Apple raise the prices for its watches, phones, and headphones so as to recoup the lost revenue.
On the other hand, economic variables such as income levels of the target market, interest
and tax rates, inflation, and economic depressions (Appeldorn, 2013). Normally, the products of
Apple are expensive and this eliminates certain groups of people from using its products. In
decision making that surround pricing, the CTO, CEO, CFO, and CIO should consider the
varying economic or social status of the target market and ensure that products that are
affordable to all classes of customers are designed.
The other economic problem that disturbs Apple’s global operations is inflation. The
average prices for products in different countries keep on changing. In this regard, the purchasing