Apple Inc: Analysis on Macroeconomic Exposure

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Apple Inc. - Analysis on Macroeconomic Exposure Executive Summary Apple operates in immensely competitive industries with its electronic product mix. This competition can be exerted on many different levels including substitute products. There are a number of challengers in the different market niches who offer relatively similar products. Furthermore, in most cases, competitors' products are offered at a discount compared to Apple branded products. Although, Apple's maintains its edge through product innovation, as soon as Apple releases a new product, many of its competitors institute an imitation strategy almost immediately. In the pc segment for example, Apple's competes with household names such as Microsoft, IBM, Dell, HP, and Toshiba (Wildstrom, 2009). Additionally, even with the revolutionary IPhone, Apple must compete with other innovative companies such as HTC, Palm, Blackberry, and Motorola (Wortham, 2011). Despite the competitive forces at play, Apple has maintained a competitive advantage due to customer loyalty and dedication to innovation that few companies have ever achieved. Yet, at the same time, being positioned as a premium product has certain ramifications for macro level movements in the global economy. This analysis will quantify some of the challenges Apple may face in a sustained economic downturn. Apple's Threats The greatest macro level threats that are present for Apple are fueled by rumors of another financial downturn. There have been
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