The influence of two contrasting economic environments on business activities within
Apple Inc.
Apple Inc.
Apple Inc. is a growing and continuously developing organisation. Their stock and sales have
increased internationally over the previous 20 years, this is due to the size of the business, it
is large in the number of stores and employees they have, and large in market share and the
number of countries they operate within.
I have chosen to investigate two economic environments that have had an impact on Apple
Inc. over the previous years. One main factor is the 2008 recession, which had a huge
impact on many large businesses. The other is Apple Inc.’s market value, it has decreased
rapidly recently, which has had an effect on the profit being made.
What is an economic environment?
The economic environment consists of external factors in a business' market and the
broader economy that can influence a business.
The 2008 recession
During the recession of 2008, Apple Inc. sold more than 2.5 million Macs and 4.3 million
iPhones in the last three months of the year. This highlights that despite the recession
causing many business sales to slow down, Apple Inc. have maintained theirs and continued
to increase and develop.
Apple Inc. sold 9% more Macs during the recession than they did within the last three
months of 2007. The business sold 1.8 million notebooks and 728,000 desktops within
January, February and March of 2008. This shows that Apple Inc. were growing rapidly
during the year of 2008, and more consumers were becoming aware of the business.
Currency exchange prices
When dollars go up in value, other currencies go down in value. At the beginning of 2015, a
product being sold for $1000 would have cost 745 Euros. This was an issue for Apple Inc. as
they are losing out on profit from European countries, as their products are worth more in
America.
A new iPhone 6 costs 709 Euros in France right now, but it would have cost $957.15 six
months ago in America. The euro is now worth 1.13 against the dollar, which means that it
would cost $801.17. This is still a huge increase, but the currency exchange prices are slowly
getting better, which means that Apple Inc. will be receiving the profit that they should be.
Apple Inc. have said that “The US dollar has a negative impact on our international
business.” this means that if the dollar continues to grow against other currencies, Apple
Inc. is more likely to face problems when increasing their revenue.
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Apple Inc.
Apple Inc.
Apple Inc. is a growing and continuously developing organisation. Their stock and sales have
increased internationally over the previous 20 years, this is due to the size of the business, it
is large in the number of stores and employees they have, and large in market share and the
number of countries they operate within.
I have chosen to investigate two economic environments that have had an impact on Apple
Inc. over the previous years. One main factor is the 2008 recession, which had a huge
impact on many large businesses. The other is Apple Inc.’s market value, it has decreased
rapidly recently, which has had an effect on the profit being made.
What is an economic environment?
The economic environment consists of external factors in a business' market and the
broader economy that can influence a business.
The 2008 recession
During the recession of 2008, Apple Inc. sold more than 2.5 million Macs and 4.3 million
iPhones in the last three months of the year. This highlights that despite the recession
causing many business sales to slow down, Apple Inc. have maintained theirs and continued
to increase and develop.
Apple Inc. sold 9% more Macs during the recession than they did within the last three
months of 2007. The business sold 1.8 million notebooks and 728,000 desktops within
January, February and March of 2008. This shows that Apple Inc. were growing rapidly
during the year of 2008, and more consumers were becoming aware of the business.
Currency exchange prices
When dollars go up in value, other currencies go down in value. At the beginning of 2015, a
product being sold for $1000 would have cost 745 Euros. This was an issue for Apple Inc. as
they are losing out on profit from European countries, as their products are worth more in
America.
A new iPhone 6 costs 709 Euros in France right now, but it would have cost $957.15 six
months ago in America. The euro is now worth 1.13 against the dollar, which means that it
would cost $801.17. This is still a huge increase, but the currency exchange prices are slowly
getting better, which means that Apple Inc. will be receiving the profit that they should be.
Apple Inc. have said that “The US dollar has a negative impact on our international
business.” this means that if the dollar continues to grow against other currencies, Apple
Inc. is more likely to face problems when increasing their revenue.
1
