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Competitive Structure Of Apple

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Professor Megan Ronk Econ 202 02 December 2017 Monopolistically Competitive Market Structure: Apple Inc. Apple Inc. is a global company that has retail stores in every continent except for Africa. It provides electronic devises and services from mobile phones, tablets, watches, laptops, stationary computers, and many other devices. It also has operating systems such as apple pay and iCloud, as well various software operating systems. The company also claims to extended business capabilities through “Industry changing apps” as stated on their website. Apple Inc. has many strengths attributed to its success, one of them being product development, “Apple’s process is complex, expensive and demanding. If you compare it to most business theories – it shouldn’t work. However, to date it has out-performed even the wildest of expectations” (Lashinsky). Apple didn’t create the electronic device market, however they implemented the touchscreen in a new way, by creating a simple device with limited buttons, and bringing a meaning to smartphone. They arguably put blackberry out of business, and influence companies like HTC, Motorola, Microsoft, and Samsung change their previous phone designs. Apple Inc. has also always been very good at advertising, marketing and distribution. They have 470 Apple stores in 17 countries, as well as many trading partners and online stores. An article on CNN tech states that people over the ages of 65 are more likely to purchases apple products, with people between 35-64 following within a $100 dollars of purchases. This leaves room for assumptions, Hope elucidates, “There are a few theories about why this is happening. "Older people might be new to Apple," Minney said. "They haven't bought as much stuff. "Another possible reason: Older customers are buying Apple products to give as gifts” (Hope). However, students purchase the majority of iPhones, MacBook Pro/Air and Apple TV’s. The household income vs. average yearly spend on Apple products its quite interesting, author Hope claims, “But, amazingly, households with an income level under $15,000 spent about as much as households with an income level between $125,000 and $150,000” (Hope). This shows how diverse of a use they have, the

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