8-1 Final Project Part 2 Milestone: Overview and Macroeconomic Variables
Economics for Business
Provide an overview consisting of a brief description of the chosen company, your chosen product or service, and annual sales
Apple is and always will be a name that means innovation, with that title comes much expectation and demand. When apple enters an industry they usually set the standard.
The Apple iPad is no different, a leader in the tablet market the super powerful device was announced on January 27th, 2010.
Among much anticipation people were allowed to begin pre-ordering the device starting on March 12, 2010, with the official release of the device being on April 3, 2010. Originally the iPad was only available through Apple stores or Apple’s website. Even with this exclusive offering it still managed to sell 300,000 units on the first day. The iPad went on to exceed one million dollars in sales only 28 days after originally going on sale.
For the year 2015 apple sold 58 million units of the ipad. With Apples overall sales for the year 2015 at 18.4 billion dollars.
Describe three macroeconomic variables in the United States that impact the supply and demand of your chosen product or service.
3 macroeconomic variables that may impact the supply and demand of the apple ipad are GDP (Gross Domestic Product), Inflation Rate, and Unemployment Rate.
One of the most important macro-economic concepts is the unemployment rate. This macro-economic variable is defined as the percentage of people willing to be employed but unable to find a job. The unemployment rate has proved to be a Macroeconomic variable that doesnt have much of an effect on the supply and demand of the ipad. It was found that regardless of the unemployment rate a new ipad was still sold every 3 seconds among the highest uemployement rates in the economy.
The next macroeconomic variable is Inflation. Inflation is an increase in the overall price levels as measured by the CPI (consumer price index). Inflation is one of the highest concerns of policymakers and economists because inflation imposes a variety of costs on the economy. The ipad has been affected by inflation as the cost of the device has risen between 2010-2013 12% to accomodate inflation. Regardless of the price increase ipads sales still remained steady and even continued to rise.
GDP or Gross Domestic Product.GDP is one of the tools used to gauge the health of the economy. GDP represents the total value of all goods and services produced over a certain defined time period.
When it comes to GDP affecting ipad; it doesnt. after research it would appear that Apple actually affects the GDP instead of the GDP affecting Apple.
.Apple with its current sales makes up about 0.35% of the U.S economy and its sales on key items such as the iPhone actually raise the GDP
Using graphs in Excel, interpret the trends of the three selected macroeconomic variables for the past three years.
Based on the trends of the three macroeconomic variables, assess how the trends will impact the supply and demand of your chosen product or service. Include all calculations in an Excel file.
Because the chosen Macroeconomic vriables dont affect my chosen product or service I did not include any calculations of how the trends will affect the ipads supply and demand.
IPad Prices Jumping 12%
Apple’s strategy evolves but their business model remains unchanged
Reports: iPhone 5 to raise US GDP, take apples stock to stratosphere.