CApple is one of the most successful companies nationally and globally. With this company constantly growing, many factors affect Apple. The company manages its business mainly on a geographic basis. Apple has determined its operating segments, which are typically based on the nature and location of its customers, to be the Americas (North and South), Japan, Europe, Asia-Pacific (Australia and Asian countries) and Retail operations. Additionally, the Retail segment operates Apple retail stores in 11 countries (U.S Securities).
Economically speaking, inflation, recession and currency are important economic factors that affects Apple. During time of inflation in the U.S, people will be making fewer purchases, which means Apple’s sales will decrease. …show more content…
A significant amount of sales of their products comes from countries outside of America. Ireland, Korea, China are some of the countries where Apple is located to reduce their operating costs. Wars, terrorism, and negative international relations are some factors that will have a negative impact for Apple. As a result, this can create a bad reputation to their name as well as their business process (P.E.S.T Factors). In addition, Apple has been a participant in various claims since it began operation. For example, in their smartphone market Apple has been in a number of patent cases. One in particular is with Samsung. During a particular case, starting back in 2011, it was stated that Samsung violated at least six of Apple’s patents. Apple sued Samsung for this and finally won the case in August of 2012. In the end, Samsung was forced to pay Apple over $1 billion for infringing on Apple’s patents (Reed, …show more content…
The key to expansion is to find a market that is ready willing and able to accept the company. That market is China. It appears that Apple and China maybe a perfect fit for each other. As shown in Apple Inc. unaudited Summary data which shows currently that Greater China currently accounts for Apple’s third highest revenue at (16,144 million) which only trials the Americas (30,566) and Europe (17,214). This is astonishing when taking into account that the country only has twenty-four retail stores according to Apple’s official website. The more staggering number however is how China ranks in terms of overall growth from 2014 to 2015. Greater China has the highest revenue year to year change out of all of Apple’s markets at an increase of 70%. Compared to the Americas which only had had a 23% increase in revenue from year to year. Apple has also had an increase in China’s smartphone market share from 17.9 % in 2014 to 27.6% in 2015 according to Chuck Jones from Forbes (Jones). Supports the notion that China could be a great and prosperous market for Apple. Given the success Apple has had with their smartphones in China it is time for Apple to bring over one of their new and promising promise in Apple Pay. Apple has already seen the potential upside in expanding into China so it only makes sense to bring over one of their new businesses. The market has already showed that it has the potential to grow as evident by revenue
Economically speaking, inflation, recession and currency are important economic factors that affects Apple. During time of inflation in the U.S, people will be making fewer purchases, which means Apple’s sales will decrease. …show more content…
A significant amount of sales of their products comes from countries outside of America. Ireland, Korea, China are some of the countries where Apple is located to reduce their operating costs. Wars, terrorism, and negative international relations are some factors that will have a negative impact for Apple. As a result, this can create a bad reputation to their name as well as their business process (P.E.S.T Factors). In addition, Apple has been a participant in various claims since it began operation. For example, in their smartphone market Apple has been in a number of patent cases. One in particular is with Samsung. During a particular case, starting back in 2011, it was stated that Samsung violated at least six of Apple’s patents. Apple sued Samsung for this and finally won the case in August of 2012. In the end, Samsung was forced to pay Apple over $1 billion for infringing on Apple’s patents (Reed, …show more content…
The key to expansion is to find a market that is ready willing and able to accept the company. That market is China. It appears that Apple and China maybe a perfect fit for each other. As shown in Apple Inc. unaudited Summary data which shows currently that Greater China currently accounts for Apple’s third highest revenue at (16,144 million) which only trials the Americas (30,566) and Europe (17,214). This is astonishing when taking into account that the country only has twenty-four retail stores according to Apple’s official website. The more staggering number however is how China ranks in terms of overall growth from 2014 to 2015. Greater China has the highest revenue year to year change out of all of Apple’s markets at an increase of 70%. Compared to the Americas which only had had a 23% increase in revenue from year to year. Apple has also had an increase in China’s smartphone market share from 17.9 % in 2014 to 27.6% in 2015 according to Chuck Jones from Forbes (Jones). Supports the notion that China could be a great and prosperous market for Apple. Given the success Apple has had with their smartphones in China it is time for Apple to bring over one of their new and promising promise in Apple Pay. Apple has already seen the potential upside in expanding into China so it only makes sense to bring over one of their new businesses. The market has already showed that it has the potential to grow as evident by revenue