Apple exists in an oligopoly market structure, wherein a small handful of companies control the market. Apple, along with Samsung, Microsoft, Alphabet (Google) and Nokia, essentially control the tech industry (smart phones, computers, portable devices, etc.). While smaller companies do exist, it is these larger companies that set the stage for prices, products and innovation. To what extent Apple’s current status as a blue chip stock may be representative of the company’s actual true value and is a question that an analysis of micro- and macroeconomic trends and conditions may be able to determine. This paper will analyze economic data and business data to explain how the core economic principles impact the sustainability of Apple, Inc. and what actions the firm can take now to ensure success in the future.Apple’s current market share of smart phone market stands at 19.2% and the company leads all others with 77.3 million phones sold, which put it just ahead of Samsung for the first time (Angerer, 2018). The company’s market cap is currently over $822 billion and its P/E is 16.486. In the personal computer market, Apple is a top 5 vendor against competitors HP, Lenovo, Dell and Asus, all of which sold more units than Apple in Q3 2017 (Clover, 2017). These companies represent the real barriers to entry in the tech market: they stand out as proof of the fact that the market is an oligopoly, controlled by a few titanic companies. In the U.S., Apple’s market share is dominant as well:
Source: Fortune (2016)
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Apple remains committed to its differentiated positioning, and that will inherently limit their share of the market. Tablets are Apple's second-largest market. The iPad was launched in fiscal 2010 and in fiscal 2011 it enjoyed 311% growth. It has now begun to emerge as a substitute for personal computers, even in the corporate market (Etherington, 2012). This has helped to drive growth. The iPad has always been a differentiated product
Apple Corporation SWOT analysis Apple Inc. is one of the well-known and recognized enterprises by not only the business community but populace from all over the world are cognizant about this corporation. It started off its business from the decade of 1970 that has been involved in the designing, manufacturing and offering its consumers with a wide range of innovative and technologically refined products like computers, software, music players and its
Apple Inc. that was previously known as Apple Computer, Inc. is an American multi-national corporation that deals in consumer electronics, personal computers and computer software and was founded in 1976. Steve Jobs was the co-founder of Apple. During his stay as CEO, company launched series of revolutionary technologies. He died on October 5, 2011. Currently, Tim Cook is the CEO of Apple. Before being on this position, Cook was Apple's
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Apple Inc. Organization's Product Life Cycle Samsung, Google, and Microsoft are the three predominant competitors for Apple Inc. These giant firms are fundamentally auspicious in making Apple Inc. lose its market share. They are utilizing price competition methodologies and more current and quick line expansions. The rivalry is exceptionally extreme because of current players and the presence of substitutes, which have the capacity to snatch ten percent of the market share
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