Essay Economic Factors That Affect Apple in China and Usa

1638 Words Jun 12th, 2012 7 Pages
Unit 1: Business Environment

Assignment 3

Apple is the company that I am going to be talking about in this assignment; I will be talking about how different economic environments affect two countries Apple operates in (China, USA) and what countries they are manufactured and assembled in. They’re stores are usually located in the central main shopping centre of a city especially their stores in the UK. The company Apple is a private limited company and the company is open to the public to buy shares in the organisation. The company is based in the secondary sector of business. Here is a table stating some of the economic factors that may affect Apple. China United Kingdom
GDP China GDP is worth 5879 billion dollars or 9.48% of
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dollar. Economic factors such as increases in energy costs (gas, petrol, heating, and diesel), changes in the real estate, unemployment, healthcare costs, could influence consumer spending. These and other economic factors could affect demand for the Apple’s products and services and the Company’s financial condition and operating results.

The U.S. represents Apple’s largest geographic market. About 39% of the organization’s net sales in 2011 came from sales to customers who purchased apple products in the U.S. Final assembling of Apple products is currently performed in the Company’s manufacturing facilities in Ireland and Asia. The supply and manufacture of a number of components is performed by sole-sourced outsourcing partners in the U.S., Asia and Europe. Single-sourced outsourcing partners in Asia perform the final assembling of all of the Company’s hardware products. Sales of Apple’s products in foreign countries, and on sales of products that include components obtained from foreign suppliers, can be adversely affected by foreign currency exchange rate changes and by international trade regulations, including tariffs and antidumping penalties.

The average US household lost nearly 39% of its wealth from 2007 to 2010, the Federal Reserve said Monday, emphasizing the impact of the financial crisis and the recession on lower and middle class Americans. This is not in Apple’s interest because this means that a lot of people will not have the money to purchase

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