Evaluating Apple Inc.'s Performance Profitability: An Economics Report

This report provides an economic analysis of Apple Inc.'s performance and profitability, focusing on its international operations. It examines the impact of currency fluctuations, globalization, and technological advancements on the company's business strategies. The report delves into how Apple Inc. adapts to economic variables, including inflation and employment rates, and discusses the company's tactics in marketing and product development. It also assesses the influence of globalization on international business operations, emphasizing the importance of skilled human resources and technological integration. The analysis includes recommendations for improving resource management, communication with stakeholders, and wage parity to enhance the company's overall effectiveness. This comprehensive evaluation aims to offer insights into Apple Inc.'s economic performance and provide strategic recommendations for future growth, considering economic predictions and events.

Running head: Performance Profitability
PERFORMANCE PROFITABILITY
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Running head: Performance Profitability
1. Executive summary
The whole study has taken into account how the company like Apple Inc are helping
in improving the development of resources that has helped them to do business operation in
the international market. Through the improvement in the business operation, the company is
mainly highlighting the strategies that helped them in getting benefits from the business in
form of increased level of profitability and expanding resource channelization.

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Running head: Performance Profitability
Table of Contents
2. Introduction............................................................................................................................4
3. Discussion..............................................................................................................................6
4. Recommendation and Conclusion........................................................................................10
5. Annoted Bibliography..........................................................................................................11
Reference list............................................................................................................................14

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Running head: Performance Profitability
2. Introduction
In the modern world of business, the performance of economic variables will be
highly important for the development of trade policies. In order to increase the effectiveness
of economic variables and the international operation of the Apple Inc. the company took
certain business strategies that was appreciated globally. In the year 1974, the idea of
building first computer came into the mind of the producers and the first computer was built
in 1976. Apple Inc. is operating in almost 43 countries. In order to expand their business in
the international countries, the company has taken the initiative of product differentiation and
price differentiation. However, the company is considering the market of China as the most
important market for their products.
The market of Apple Inc in Us is more profitable in the sense that the marketing
environment of US is more individualistic compared to China. In order to increase the
revenue from the international market, the Company took the policy of Simultaneous
Multiple Strategic Thrusts (SMST). Through the use of SMST, the Apple Inc Company is
making a deep connection with the stakeholders in the form of suppliers, customers and
manufactures. Through the use of effective learnings and improvement in the R&D, the
company is making full control on both hardware and software of their products. The
competitive ground of the Company is the Samsung software does not run on Apple products
and they need to rely on the third party hardware. This has blocked the initial level of
competition for the Apple Company. Another important strategy that the company took is
lowering the price of their products in the international market using standardised raw
materials for the products.
The net profit of the company got lowered in 2016 by an amount of 39.1%. The
company has witnessed low growth of the profitability compared to the last year. The

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Running head: Performance Profitability
company took many initiave to increase the development of resources that will not only
increase the development of revenue but will also increase the development of their
marketing of the products.
The company has taken a huge dip in increasing the local stakeholders and took the
advantage of better productivity by taking the advantage of local resources in each country
they are investing heavily on the research and development in order to bring innovations in
the products. This is important in the sense that in order to make competition with the
international products like Samsung and Google, the company is focussing on the
development of new products that will continuously increase base of new customers. The
company has performed better in domestic region in terms of demand of their products but
their performances in the international market is going a bit slow in nature. The slowdown of
the Chinese economy is one of the important reason behind the slowdown of global demand
of the products. The device price is Rmb12, 700 and that is more than its normal competitor’s
price of top end smart phones.
This is an important issue in the sense that competitors are performing better and by
lowering the price the revenue are increasing and so does the market share.

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Running head: Performance Profitability
3. Discussion
3.1 The impact of currency fluctuations on international operations
Currency fluctuations are an important factors that can hamper the international
operations. Currency fluctuations are one of the common insight that has been seen in the
modern world. On the other hand, the fluctuations that are seen in the international currencies
has given rise to the hindrance and slowdown of the operations of the company in the
international perspectives. Through the development of monetary policies that has been taken
by central bank of most of the country, the international business of luxurious products are
raising questions. On the other hand, through the incorporation of effective policies taken by
the government and the central banks will not only increase the level of revenue of the Apple
Inc. but will also increase the overall marketing of the products of Apple Inc. In modern days,
rate of inflation is increasing and almost all the countries are looking to make fixed inflation
rate.
The currency fluctuations will indulge the exchange rate and according to the
Mundel-Flaming model, the wealth effects of the country and the companies are decreasing
in nature. Through the flexible exchange rate, the companies like Apple Inc. will definitely
face problems in marketing their products in countries that are having high rate of inflation.
The price of Apple products are quite high in nature compared to traditional smartphones
products and indulgence of inflation is impacting heavily in determining prices of the
products. Moreover, the currency fluctuations are also having deep impact on the terms of
trade and big companies like Apple Inc. are facing issues regarding exports as the rise in the
price of exporting their products are increasing costs of operation.
International operations are largely depending on the price of the exports that are
mainly going under scanner due to slow demand within the economy of global markets like

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Running head: Performance Profitability
China. This is one of the important aspects for the development of resources and slow growth
in the demand for the luxurious products in China is forcing many companies to sell their
products within domestic level of individual economies. Huge disparity is being seen in the
wages among employees, in most of the countries that is leading to the employment
migration from the developing nations to the developed nations. The drain of human
resources are one of the main consequences for the wage disparity.

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Running head: Performance Profitability
3.2 Tactics and strategies affected by technology
It is important for the company to increase the tactics and strategy that will increase
the technology to be used by the company. Through the development of better accessibility to
technologies the company is willing mainly to bring improvements in the products of the
company. On the other hand, through the development of better techniques like using
robotics and the big data analytics within their production are going to increase their revenue.
It is important for the company to understand the tastes and preference of the consumers
regarding the products they like will help the company in bringing better models. In order to
increase the marketing of the products, the company is increasing the shareholders
communication and the company through various meetings and other aspects of
communication.
Increasing the development of communication will improve the marketing of the
products. In order to bring the development in the R&D of their products the company is
using robotics in testing their products. The total revenue of the products that the company is
generating in the year 2014 is around $180 million and they have taken some of the
innovative strategies in order to increase their revenue. The first strategy that the company
took is that they changed the course of advertising their products. They took the strategy of
products placements and they took the help of certain celebrities to make them brand
ambassadors to market their products through any kind of shows.
The second strategy that the company took is by avoiding price wars. On a continuous
basis, the company is lowering the price of their products compared to the competitors. Even
the company is thinking to bring in I phone that will be having folding screens. It is important
in the sense that through the increase in the development of tastes and preference the
company will grow in future.

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Running head: Performance Profitability

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3.3 How globalization has affected international business operations
Globalisation is having improved level of impact in the business operations. One of
the major impact of the globalisation is the increase in skills and potentiality of the human
resources. The globalisation is bringing in better level of the technologies that will increase
the development of effectiveness of resources. The advent of globalisation has opened up the
path for international trade and commerce that has enhanced the exports of the products.
Through the incorporation of the globalisation, the company like Apple Inc. will definitely
will be looking to increase improvisation of technologies (Torrison et al. 2015). Through the
incorporation of globalisation, the company will be looking to hire highly skilled employees
that will definitely increase the rate of production. On the other hand, through the increased
use of globalisation, the economy is having deep impact on the openness of the company
marketing. This is highly important aspects for the company to increase the development of
better technologies that will increase the marketing.
Through the advent of globalisation, the company has introduced the business
expansion through the online platform that will easily expand the base of customer. On the
other hand, using better accessibility will increase the effectiveness of the human and natural
resources. The globalisation is opening up the opportunity to use the best technology that will
increase the rate of products diversity. Through the product diversity, the company is
basically looking forward to bring in new learning process for human resources. Increasing
the resources mobilisation will definitely increase the overall effectiveness of both human
and capital resources. Through the globalisation, the company is increasing their
capitalisation process that will increase the amount of FDI in their technologies.

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Running head: Performance Profitability
4. Recommendation and Conclusion
The whole study has come to the conclusion that in order to increase the development
of resources, the company has taken the help of better technologies. On the other hand,
through the development of better and effective marketing of products, the company has
increased the level of communication with their stakeholders. It is important for the economic
activities and the performances of economic variables so that the Apple Inc. will be able to
increase the effectiveness of their products. In order to bring the development of the
company, it is important for the government to set up better policies so that the economic
variables in the form of inflation rate, employment rate and other variables can perform in a
better way. Through the development of resources, the company like Apple Inc. will increase
their process of hiring skilled and efficient employees. The company is going to increase the
development of learning process for their employees so that the employees can increase their
level of production.
On the other hand, in order to increase the marketing of the products, the company is
targeting the level of communication with the stakeholders so that they can get the best
method of supply chain management. Improving the supply chain management is going to
increase the resources distribution that will definitely increase the level of the production. In
order to increase the development of resources management the company is basically looking
to hire highly efficient managers so that the gaps in international marketing can be
minimised. In order to increase the development of resources the Apple Inc. is looking to
minimise the diversity of wages among the employees in various countries. This will reduce
the distortion that are happening within the employees in various countries. Through the
increased level of better accessibility the company is going to increase the efficient in their
resources. It is important for the company to increase the development of better accessibility

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of technologies and green supply chain management will also minimise the cost of the
company.
5. Annoted Bibliography
Article 1: Li, H. (2016). Profitability Assessment of Apple Company.
The main content of this articles is that being one of the eminent and leading company
of smartphones in the market is struggling for existence in the global market. The company
has been increasing the level of cash assets. The amount of cash assets that is present within
the company in the year 2015 was around 20,451 million that is comparatively high from the
previous years. The development of the cash assets is important for the company in the sense
that in the long run, the company is viable to increase their assets production and the
profitability in the long run. Through the incorporation of better accessibility in the cash
assets the company will indulge in the implementation of better technologies in the business.
The article is important and relevant to the study because of the fact that in order to
analyse the overall profitability of the company, it is important to identify the assets in the
form of financial and non-financial assets. On the other hand, the articles is helping in
identifying the gaps of resources that will not only increase the revenue but will also indulge
the development of better activities.
The source is credible in the sense that it will definitely indulge the improvement in
the economic activities that will increase the resource distribution.
Article 2: INNOVATION AND FINANCIAL PERFORMANCE OF ELECTRONICS
COMPANIES: A CROSS-COUNTRY COMPARISON
The articles is written by Cortez et al. (2015), and the main insight of the article is that
in the modern life the probability of indulging new R&D by most of the eminent companies