The Economics of the iPhone

China has an absolute advantage over the United states in electrical machinery and equipment. China has very cheap labour comparing the US this make them produce at a lower cost. The United states has comparative advantage over China in transportation equipment. Therefore China are importing transportation equipment, and the US are importing electrical machines and equipment.

In this report, I prove that Apple’s iPhone has dominated all other smartphones in the years leading up to 2016. It is the epitome of what a globally recognized product can accomplish when considering how quickly it globalized and the image it provides for those who buy an iPhone. Owning one of these phones is not only a statement, it holds power and value that other smartphones simply cannot top. The company owns the stage when compared to other smartphones, and it’s journey to become the world’s second-largest mobile phone manufacturer is truly incredible. In fact, not only does it lead in technology and phone production, it’s become the largest publicly traded TNC in the world. Everything from its assets to its brand loyalty prove why it has expanded across the globe, and will continue to for many years to come. Apple Inc. has globally expanded by outsourcing nearly every level of its production and became one of the most successful and revolutionary TNC’s in the world, mainly due to the release of the infamous iPhone in 2007.

The Frontline video shows the connection between American job losses and soaring Chinese exports, and the impact Walmart has on the U.S. economy. China is the cheapest, most reliable production platform and the source of up to $25 billion in annual imports to help the Walmart deliver low prices (Smith and Young, 2004). Economists credit Wal-Mart's focus on low costs helping contain U.S. inflation. However, others believe Walmart is the main force driving the overseas shift to China in the production of American consumer goods. The result of lost jobs and a lower standard of living in the United States. The documentary demonstrates the changing relationship between manufacturers and the big-box retailers contributed to the bankruptcy of American businesses and a higher unemployment rate.

China has been the number one target of antidumping actions filed by the U.S. Commerce Department on behalf of various domestic industries. One reason for this special status is because China is one of the world’s lowest cost producers. Because of the cost structure of its industries and economy, as well as the fact that it tends to manufacture products at the low end of the quality scale, it is able to sell a wide range of products for lower prices than most competitors. Furthermore, because it is classified as a nonmarket economy, special rules must be used to determine the cost of production. It is unlikely that the frequency of antidumping action will decline in the near future. Indeed, because the antidumping laws are becoming more

Competitors can be identified as companies that offer similar products or services to the same customers at similar prices. These can be either direct or indirect competitors. As a corporation such as Nokia, they too have many competitors. Some of their direct competitors are Apple and also Samsung. Their indirect competitors would be home based phones that hook up to the main telephone line, the company Telstra is one of the corporations that provide this kind of service to consumers. To be a successful corporation, the knowledge of your competitors will take you far. Knowing all of the corporations POP, POD and also their assets and capabilities will benefit any corporation in so they will use the useful information to better their own corporation.

The following paper coherently illustrates the trade patterns of USA and China and describes the various trade policies developed over the past years that have impacted the respective economies of both countries alongside the effect of the same on the bilateral trade relations between the two. Based upon the previous statistics, US-China trade is considerably one of the largest trading partners in today’s economies. Both countries’ trade relations entail exchange of investment, services as well as goods varying from agricultural products to non-agricultural products. Currently, China is the second-largest trading partner, third-largest export market and the biggest source of imports for the United States. The U.S. government’s debt purchased by China provides US the benefits of low interest rates (Morrison, 2015). While for few this economic relationship is considered to have a positive effect as it helps to fund the U.S. economy, for others it is an attributable concern that China may gain more power over the U.S (Loc.gov, 2016).

Americas insatiable demand for cheap goods has caused an increased gap in the annual U.S. trade deficit over recent years. The U.S. trade deficit with China was an astronomical $365.7 billion in 2015. The United States imports consumer electronics, clothing and industrial machinery from China. Many of the imports are from U.S. based corporations that send components to China for less expensive assembly. After assembly the products are shipped back to the U.S market for retail sale. Although the profits are attributed to American-owned companies which are ultimately domestic entities the merchandise is classified as an import by law. The growing trade deficit with China is a hot topic in American politics. Legislators often try to impose tariffs or other forms of trade protectionism against China to support

In a competitive industry there is a wide range of aspects that help determine what companies succeed and fail. Over time different companies grow and develop competitive relationships that encourage refining of their companies in order to stay relevant in a competitive market. Apple is a prime example of a company that is in a competitive market has had many innovations since its creation to help it stand out from other companies in the computer technology industry.

The following paper coherently illustrates the trade patterns of USA and China and describes the various trade policies developed over the past years that have impacted the respective economies of both countries alongside the effect of the same on the bilateral trade relations between the two. Based upon the previous statistics, US-China trade is considerably one of the largest trading partners in today’s economies. Both countries’ trade relations entail exchange of investment, services as well as goods varying from agricultural products to non-agricultural products. Currently, China is the second-largest trading partner, third-largest export market and the biggest source of imports for the United States. The U.S.

Throughout this essay I will explain why I believe that over time the smartphone market will become much more focused on the platform of which the devices are built around and less focused on the actual hardware of the phones. I will be explaining these points based on my understanding of economics thus far in my studies as well as researching to find points to support my arguments I put forward throughout the essay. The smartphone market is currently being dominated by many firms making this a monopolistic competitive market. The market became very popular in 2007 when Apple who, in August 2015, was recorded with a market share of 13.9% (IDC: Smartphone vendor market share) brought out the iPhone. Apples biggest rival is Samsung and Samsung was recorded with a market share of 21.4% at the same time who currently is the leader of the worldwide market. Google created the Android operating system (OS) in which Samsung currently uses. However, Samsung is not the only firm that uses Android OS as the platform for their smartphones, Google provides the operating system to other firms such as LG, HTC and Motorola.

Last quarterly reports released by Apple in 2010 reveals that 58 percent of its revenue, excluding Apple store sales came from outside of America (Kane, June 8, 2010). Apple outsources to several countries with China being the main location for the production of iPads. Apple hasn’t had difficulty adjusting to the global market, although consumers have brought into question the treatment of foreign workers employed at the Foxconn factory located in China. Apple has addressed the issues, but in light of this situation Apple’s stocks have remained high.

Apple’s I-Phone is a creative product that has a constant product life cycle. Each new phone that Apple produces goes through the same process. The simple lifecycle of which I will discuss a small scope of within this essay relating to social factors is, introduction, growth and maturity and then decline. Social Factors that revolve around the life cycle of the I-Phone are those such as trends, social media, social reputation and the competition around you. As the I-Phone is a technological advancement in itself technology will be a main focus through the entire argument. The social factors that tie in to the lifecycle of the I-Phone relate or tie in to the technological advancements of the product. I will discuss how the product is received and mass-produced to the point where there is no longer a market and the lifecycle ends.

In 2003, wireless revenues totaled to over $100 Billion; nearly one percent of the United States

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Just as Sally pulls into her driveway, she hears a rattle, thump, and clunk. Anxiously she checks her gauges and discovers that everything appears to be in order, except for the check engine light, which is blinking brightly. Twenty years ago, customers would rely on their local classified ads in the newspaper for a used car or help with locating a coupon for the mechanic’s shop. With the advancement in technology, customers no longer need to rely on a phone book or a newspaper to locate a number or find an exceptional buy. Business owners should recognize the different types of smartphone users to pinpoint their marketing strategy. All smartphone users can be classified into three categories: talkers, texters, or gamers.