Micro Economics Presentation

1. CASJMIA ELLIS, SHELLIE FERGUSON, JANINE BARNES
Apple inc.
Microeconomics Presentation

2. INTRODUCTION MEET THE TEAM!
APPLE INC. ENGAGES IN THE DESIGN, MANUFACTURE, AND SALE OF SMARTPHONES, PERSONAL COMPUTERS, TABLETS,
WEARABLES AND ACCESSORIES, AND OTHER VARIETY OF RELATED SERVICES, IT OPERATES THROUGH THE FOLLOWING
GEOGRAPHICAL SEGMENTS: AMERICAS, EUROPE, GREATER CHINA, JAPAN, AND THE REST OF THE ASIA PACIFIC. S (JOURNAL, W.
S., 2021).
Apple Inc. Key
People
Timothy Donald Cook
Chief Executive
O
ff
icer & Director
Andrea Jung
Independent Non-
Executive Director
Monica Cecilia Lozano
Independent Director
Arthur D.
Levinson
Independent
Chairman
Ronald D. Sugar
Independent Director
Albert Arnold
Gore
Independent
Director
Susan Lynne Wagner
Independent Director
James A. Bell
Independent Director
Shellie Ferguson
Music Business
Janine Barnes
Music
Business/
Production
Casjmia Ellis
Entertainment
Business

3. APPLE'S MARKET
DESCRIPTION
•Apple Inc Currently markets to those
online, In store, and through Digital
application stores.
•They market Smartphones,
Computers, Tablets, and accessories.
-Market Audience Business
Professionals and Apple’s main market
target, Students, and Managers.
•Target Market is geared towards
individuals who have relatively high
paying jobs.

4. History ofApple Inc. Market
• Apple Inc was initially marketing to computer users as to when
they started Steve Jobs and Stephen Wozniak. Apple was a
manufacturer of personal computers and that is what they were
manufacturing, during this era Apple had low market shares
due to the lack of sales back in 1977.
• Fast forward to today Apple is an international business corp,
with a variety of di
ff
erent products that they now o
ff
er such as
iPads, Mac books, iMac, iPhones, AirPods, and Apple watches
along with other things.
• Because of the popularity of Apple products in general they are
very successful and are frequently being produced.
• With the large array of products apple’s market has grown
tremendously over the years but the iPod is what brought apple
into its prime this was a di
ff
erent type of mp3 player one that
was built on quality and had a unique style and progressively
they went from an iPod shu
ff
le to an iPod touch.

5. Apple's Top Substitutes/Competitors
From my research, I show the top 2
competitors of Apple inc. are
Microsoft Corp. and Alphabet Inc. Cl
C which is Google, in the number 1
position Microsoft is at 37.61 P/E (TTM)
Google Alphabet Inc. Cl C at 28.64
while Apple sits at 26.92. Both of
these competitors are software-
based. Photo
By appleinsider.com

6. Revenue Streams
Apple Inc.
• Apple Inc. has two categories for
how they charge people which are
purchases that are only charged
one-time and then there are
subscriptions which are recurring
charges and downloading apps
and making purchases.
• There are about 6 different
streams of income coming from
this company. The different
streams include Mac Computers,
iPad, Apple TV, Apple Care,
iPhone,Apple watches.
Photo by dazeinfo.com
Photo by Tomsguide.com
Photo by garners.com

7. Competition Structure
• Competition in Smart
Phones, Apple inc. is an
oligopoly in their new
release structure and
known for the
monopolistic market in
general.
Photo by rzaatrivia.blogspot.com

8. Apple's Consumer's Income
Regardless of income, Apple consumers
buy products as they are believers of the
brand and its services; thus, demand rises.

9. Apple's Price Of Related Goods
• Since its inception, Apple has been able to charge consumers which increases as new products are
released. However, it is believed the pricing structure would be unaffected as Apple stays true to its
pricing and customers continue to buy regardless of an expected increase.
• Samsung offers comparable items and the pricing structures are below. The iPhone 13 Pro Max was
released on September 24, 2021. Prices start from $1,099 / £1,049 / AU$1,699 for the 128GB model, while
$1,199 / £1,149 / AU$1,869 will get you 256GB, and $1,399 / £1,349 / AU$2,219 will secure you the 512GB
model.
• There’s also a 1TB model this time around, which will cost you $1,599 / £1,549 / AU$2,569.The Samsung
Galaxy S21 Ultra appeared much earlier in the year, on January 29, 2021. The entry-level 128GB model
starts at $1,199 / £1,149 / AU$1,849, while the 256GB model costs $1,399 / £1,349 / AU$2,149. Finally, the
512GB model increases that price to $1,599 / £1,549 / AU$2,449.

10. Tastes WithinApple's Market

11. Expectations InApple's Market
• Apple clients expect new products
and apps that will increase their
buying habits.

12. What may increase or decrease the number of potential customers?
Apple is projected to grow it’s customer base; however, Potential Apple clients may decrease if job loss incurs or
another pandemic causes stores to close, losing foot tra
ff
ic.
Number of buyers

13. Apple's Elasticity
•The Apple brand is said to be inelastic
due to the “uniqueness of the
products and product differentiation”
(Lover, 2021).
•Price levels for Apple products and the
availability of potential substitutes may
someday have an effect and cause
Apple to become an elastic company,
but from its inception, Apple has been
able to create a relationship with
consumers which continues to grow
as a result of the reliability and
uniqueness of its brand’s products.
Photo by apple.com

14. Apple's Input Pricing
We could expect Apple to change its original price for
the new iPhone 13 Pro Max from $1300 to between
$700 to $1000, due to sales; which will affect our
decisions on the supply, because there will be more
supply than demand, due to the Covid19 CoronaVirus
pandemic.

15. Apple’s New Technology & Expectations
-Apple’s new technology; which has been unveiled
decreases the company’s cost, it is the new iPhone 13
Pro and iPhone 13 Pro Max.
-Apple companies’ expectations of how the market
for our new iPhone 13 Pro and iPhone 13 Pro Max will
change is based on whether the consumer buys an
iPhone 13 Pro or an iPhone 13 Pro Max now at its
current price or wait until later when it's on sale for
the holidays. Apple’s expectations will be a
ff
ected by
our business decisions based on the high-end iPhone
13 Pro and iPhone 13 Pro Max. Apple has introduced a
new always-on display similar to the Apple Watch, as
well as a ProMotion display. This has enabled refresh
rates up to 120 Hz, similar to the iPad Pro and the
iPhone 13 will feature around a 30% reduction in size
in terms of width.
Photo by apple.com

16. Apple's Competitor Entering In The Same Market
-Samsung android cell phone company, one of the latest top competitor entered into Apple’s
company market right after they saw the iPhone 13 Pro and iPhone 13 Pro Max unveiling on
September 17, 2021, and created a Samsung Galaxy S22 android cell phone to be unveiled on
February 28, 2022,
f
ive months after they saw the iPhone 13 Pro and iPhone 13 Pro Max do so well.
Photo by samsung.com
Photo by apple.com

17. The Covid19 CoronaVirus outbreak had a major
production and device sales impact; which a
ff
ected
the production and device sales in countries like
China, Italy, South Korea, and the United States, and
about every other country.
There are 272 Apple store establishments in the United
States.
Apple's Establishments In The United
States & Covid19 Outbreak Impact
Photo by apple.com
Photo by apple.com
Photo by statista.com

18. References:
References:
Juli. C. (2020 July 1). Covid19 CoronaVirus Impact On Apple iPhone Mac And WWDC.
https://www.macrumors.com/guide/covid-19-coronavirus/
UK Essay. (2018 November). History, background, and market strategy of Apple Inc. Retrieved from https://www.ukessays.com/essays/marketing/history-and-
background-of-apple-inc-marketing-essay.php
Lover, T. G. (2021, July 9). Apple Products and Price Inelasticity – Why are they Virtually Immune to Price Changes? Retrieved from The Gadget Lover: https://
thegadgetlover.com/apple-products-and-price-inelasticity-why-are-they-virtually-immune-to-price-changes/
Staff, A. I. (2015, October 1). Google, Microsoft agree to end years-long Patent War. AppleInsider. Retrieved November 6, 2021, from https://appleinsider.com/
articles/15/09/30/google-microsoft-agree-to-end-years-long-patent-war-.
Chance. M. (2021 September 7). Should You Buy An iPhone Now Or Wait For The iPhone 13?.https://9to5mac.com/2021/09/07/should-you-buy-an-iphone-now-
or-wait-for-the-iphone-13/
James. P. (2021 November 3). Samsung Galaxy S22 Release Date Rumors, Price, Leaks, And What We Know So Far.
https://www.techradar.com/search?searchTerm=Samsung+galaxy+s22+release+date+rumors%2C+price%2C+leaks%2C+and+what+we+know+so+far
Press. Release. (2021 September 14). Apple Unveils iPhone 13 Pro And iPhone 13 Pro Max More Pro Than Before.
https://www.apple.com/newsroom/2021/09/apple-unveils-iphone-13-pro-and-iphone-13-pro-max-more-pro-than-ever-before/
Vail Sherry, L. S. (2021, September 10). Apple - statistics & facts. Retrieved from Statista.com: https://www.statista.com/topics/847/apple/#dossierKey
f
igures
Journal, W. S. (n.d.). AAPL | Apple Inc..
f
inancial statements - WSJ. The Wall Street Journal. Retrieved November 5, 2021, from https://www.wsj.com/market-data/
quotes/AAPL/
f
inancials.
Lionel. V. (2021 October 19). Number Of Apple Stores In the U.S. And Canada 2021.https://www.statista.com/statistics/1041565/number-of-apple-stores-north-
america/
How Apple Uses Consumer Behavior Marketing to Win. (2021, August 2). Retrieved from How Apple Uses Consumer Behavior Marketing to Win:
https://www.macrumors.com/2021/07/27/apple-3q-2021-earnings/