Although Apple appears to have complete dominance throughout the world,
their stock value is steadily decreasing. Apple’s sales are still increasing,
yet their value is decreasing. How could this be? Essentially, this is because
of the smartphone explosion overtaking our society today. People are finding it
necessary to purchase a smartphone, and more people are choosing smartphones
over iPhones. In addition, people are becoming less willing to pay for yearly
updates when previous models appear to suffice. Unless a new and popular
product comes out, this will likely continue. In conclusion, Apple is becoming
a less dominant force; however they maintain overall superiority in the market.
Despite the appearance that Apple is declining, this is only relative
to other markets. At the end of the fiscal year in this past September, total
sales added up to over $22.5 billion. This is more than double the sales during
the previous year.
This graph illustrates the overall stock value in China and the rest of
the world. Apple Inc. has been declining since approximately October. However,
the value of Apple in China has been increasing since October. These trends are
expected to continue in the future.
Despite Apple’s relative decline, Apple is growing throughout China.
This is because Apple has made special efforts to gain popularity in the
world’s most populous country. The trend of Apple building in China is expected
to continue. In the past year in China (including Hong Kong and Taiwan), sales
have grown 67%. Apple has plenty to be excited about in expanding markets, but
the growth is slowing and stalling in developed markets. This is why Apple is
making an effort to expand sales in China and other more populous countries.
For example, in Brazil and India, rich citizens find it necessary to purchase
an iPhone, according to author Sean Geary. These observations indicate the positive
correlation between Gross Domestic Product (GDP) and iPhone purchases. GDP
measures gross domestic product, and measures the total value of the goods and
services produced by a country in one year.
to succeed, and inevitably profits can relatively increase if Apple attacks the market properly.
This was an insightful post about the current state of the iPhone economy, with the growing influence of the Android market and the saturation of iPhones combined with the decline in innovation have made sales drop. People in developed nations already have a phone that accomplishes their daily tasks and do not feel the need to spend such a large amount for a slightly newer phone. Unless there is a major new innovation, apple will have to look at other countries in order to increase their sales.
ReplyDeleteYour blog entry brought to the surface something we all don't think about. We don't necessarily think about how a company can put themselves at a disadvantage. With Apple, they appealed to a consumer want of a high-tech phone that put them into direct competition with other Smartphone companies. In the start, like you stated, there was a large increase in the demand for the Iphone. However throughout the past years they have created many different variations of the Iphone that aren’t producing as much income. This is because consumers are satisfied with the previous Iphones that they don’t feel the need for advancement
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