Essay on Apple Inc Economic Analysis

1794 Words Jun 13th, 2012 8 Pages
MBUS 610
Econ Environment of the Firm
Apple Inc.
Economic Firm Analysis
Trey III

Apple Incorporated, formerly known as Apple Computers Incorporated, and more commonly known just as Apple, has lead the way in technology and innovation for consumer electronics with their slender storage capacities, vibrant displays, and incredible touch screen products. When they first started, their focus was more on personal computers for customers, but as the company has aged, so has their focus expanded towards this idea of consumer electronics as a whole. Seeing as they now offer popular devices including, but not limited to, computers (Mac Book), home theater (Apple TV), phones (iPhone), tablets (iPad), and media (iPod), it can clearly be
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Shown in 2007, after only two months from the release of their first iPhone, Apple dropped their iPhone’s prices by two hundred dollars just before the holiday season rush. As was to be expected, there was a huge backlash from their already owners of the iPhone, resulting in an empathetic letter from Steve Jobs and a hundred dollar store credit to all those initial buyers (Jobs). As with most of Apple’s products, they only use price discrimination if there is a newer or better version of product for which to fill that higher price’s place. An example of this can be seen with the release of the “new” iPad this spring with the retina display and available 4G LTE data packages. The iPad 2 was discounted and in its place, the “new” iPad took the peak price. So although price discrimination is used, it is more as a tool to make their older products more affordable when their newer products are released. An even further example of this can be seen today as that first iPhone discussed previously is now sold in cell phone stores as a free phone with the two year service plan, seeing as there have been four new releases of the iPhone since it was released in 2007.
One might say that is quite a few new releases for a product. Why can’t they just release a good product

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