Apple’s Control
Ever since 2005 Apple has been making huge profit. At the end of 2015 Apple had recorded there highest sales out of every year they have been a company. And by that end of the year they made 50.6 Billion in sales. More money for them means more deals for us. Apple has always said if they ever reach the top they would decrease prices and This year they might be able to call them self #1. It's a bit early to tell the second counter just ended and on May 1st Apple posted the record breaking sales they have ever had.
Most to all there sales are the Iphone X, Iphone 8 plus, and Apple watch series 3. The most sales they have had this year is the Iphone 8 plus. And just in this year Apple made over $65.4 Billion in sales. Growing the company by 16% and the EPS sales (Earning per share) grow 30%. They is the highest Apple has ever had. And if they keep it up they will reduce their prices. If this happens Apple will have even more sales because more people are likely going to buy there phones. Even though with the actions that Apple has done last year with the older phones. People has existed there apology and are still stand by their sides. For everyone who does not know late last year Apple was slowing down peoples Iphones 6s and under to save the battery life. And they had a good reason to. If you where the person who had their phone for more than 2 years, there has been signs of batteries heating up and melting in your pocket. After people found out apple was willing for 1 week to give away new free batteries for anyone with a bad one. And after they lowered the price of the Battery for $35.
Apple is going to use this 16% of money they have earned put it to making the Iphone, (11 or 9) they have picked a name yet but it will be called one of those. Apple is trying to make a bezel-less phone, the highest they can push it is 98% seen on top and on the side and 96% seen on the top because of the speakers. If they are able to do this to the eye there will be no bezel.
So this is Apple’s income form 2005 to 2017 and you can see the to is $53 Billion and last year in 2017 it was $48.35 Billion so if you take that number and divide it by 100 Apple made 4.8 million in profit that goes to them and in this year just form the beginning of the year to may 1st, Apple has made $5.4 Billion in profit they can use feely and that is a lot of money. So you might be asking What happens to the rest of that money. And the answer is it goes of paying bills, people, lawsuits, and so much more. So even if you like Apple or not they are making a huge leap ahead form any other company.
Work Cited
“Apple Reports Second Quarter Results.” Apple, 1 May 2018, www.apple.com/newsroom/2018/05/apple-reports-second-quarter-results/.
* All products require an annual contract. (New York). “Apple: Net Income by Year 2005-2017.” Statista, www.statista.com/statistics/267728/apples-net-income-since-2005/.
*https://i.pinimg.com/originals/3c/21/65/3c2165053a5e3a83c34f4a511fc61259.png
*https://upload./commons/thumb/f/fa/Apple_logo_black.svg/1200px-Apple_logo_black.svg.png
Haslam, Karen. “Apple Reports Second Quarter Earnings - New March Quarter Record.” Macworld UK, 2 May 2018, www.macworld.co.uk/news/apple/apple-financial-results-3581769/.
You said that Apple will lower their prices once they have become the #1 phone seller, but I find that very hard to believe; as Apple distinguishes themselves further and further above rival phone sellers, the market becomes less of monopolistic competition and more like a complete monopoly. As Apple attains more market control, they will take advantage of that to make more profits.
ReplyDeleteEven though it would be nice if Apple decreased the prices of their products, I don’t think it would be their best interest to do so. Their prices are already making huge profit, and although people would be more likely to purchase an Apple good at a lower price, I don’t think that the price drop would increase the quantity demanded that much.
ReplyDeleteI mildly doubt that Apple will lower their prices, despite their claims. Ever since the release of the first iPhone, Apple products have been wildly popular. As you said, sales have been increasing, which shows that more and more people are willing to pay the exorbitant price for Apple products as the years go on. So why would Apple decrease prices now, after they’ve discovered millions of people will pay the high prices?
ReplyDeleteApple products have a huge handle over people's everyday lives. Everyone has owned or borrowed or at least know of Apple products, even my grandpa has an iPad and a Mac computer. I'm not surprised by the large amounts of profits that the company gets because of the large prices for their phones and how often they release a new iPhone that everyone wants. They continue to show new ways to use their software and try to make it better. I hope that Apple soon puts prices down but I also find it hard to believe that with a consumer market so big and consumers willing to pay these prices that they would want to slow down. They will probably try to get as much money as they can because at the end of the day they are a business and want money.
ReplyDeleteIt is very interesting that Apple promised they would lower their prices if they reach #1. I do not think they will though, because by trend, the price of Apple products have only been increasing throughout the years. I am not sure Apple would decrease their prices, because they enjoy their profit margins, and if they reduce their prices, they will possibly lose their #1 spot.
ReplyDeleteApple has grown at such a high exponential rate. It is interesting that the company is debating on lowering phone prices when they become the #1 phone company. I feel this could help bring in more demand. As long as they keep the supply up, by lowering the price Apple should in theory generate even more money pulling them away from the #2 company because of the increase of demand of a lower price. This should also help people who couldn’t afford an Apple phone, to help them to be able to afford an iPhone.
ReplyDeleteBecause Apple is receiving a lot more revenue, they are able to create higher quality products. When Apple releases a new product with a higher quality, the consumer expectations increases. Since Apple is one of the most successful technology companies in the world, Apple must increase the supply in demand because their consumers are willing to buy their products at a higher price, which means that Apple must increase the quantities of their new products. Due to the company’s popularity, it gains more revenue, but will their popularity cause other larger technology companies to go out of business? If the majority of technology consumers favor Apple, the other technology companies will gain less revenue and would be replaced by Apple. If this were to happen, would the consumers continue to spend their income on Apple products? Consumers would have less companies to buy from and would decrease the consumer in demand.
ReplyDeleteI think that was very well said. Although it would be nice to see apple decrease the price pf their products the truth is they are leaps and bounds ahead of many other electronics companies caucusing a high demand so apple must increase there prices or there would be a shortage of apple products.
DeleteConsidering the huge jump in price for the IPhone X, there won't be any significant price decreases, as the trend shows the IPhone increasing in price for every phone. Even if the prices decreased, it would probably just become the price of a competitor's phone, meaning a consumer could have paid that price for the same technology before apple decided to lower the price. There also isn't really a 'huge leap', since the technology hasn't improved to be any better than the competitors, which basically means the IPhone scams people out of the hundreds of dollars they could have saved buying something else with the same capabilities.
ReplyDeleteDue to their supply of new phones, people have been interested in Apple. From the get go, Apple has been pretty high in rates in regards to other phone companies. Since they are continuing to develop and improve their phones, the demand for them has increased. Their new products have sparked interests in consumers, therefore making their income rise. There is no doubt that they would be marked #1 in the phone business due to this income, so perhaps they will consider lowering prices very soon.
ReplyDeleteI Believe that they are getting bigger because money doesnt lie
ReplyDeleteThis is a huge step for a major company to lower their prices because they have reached the top of what they do and I agree that if they lower the prices more people will probably end up buying their phones which means more money for them which means they might lower the prices even more or they will put the money into some sort of research to make a better phone.
ReplyDeleteThis was an interesting article, but I have to respectfully disagree with your point of view. I personally do not think that Apple will lower the prices of their goods if they become the number one seller of their products. The only thought that I had that agrees with your claim is the idea that maybe Apple would lower their prices a mediocre amount to literally put their product in the hands of every american. But because so many people already have their products I do not see them lowering their prices any time soon.
ReplyDeleteThis is crazy! Apple is by far my favorite brand and I am sure many others feel the same way. They market so well, and make products feel so cool to use. No wonder they have such dominance in the market. I will always buy apple, and happily contribute to their success in the future.
ReplyDeleteIt is no surprise that Apple is making as much money as they are and it was shocking to me that they felt the need to slow down older phones and damage their batteries because you would think that they would be doing just fine without those couple extra sales. Nevertheless they did not lose very many customers from the whole ordeal which goes to show how strong of a consumer base they were able to build in the past decade.
ReplyDeleteWill growth like this continue for Apple? But as a fact of life, people will become disinterested with Apple's products, what with the assortment of competitors, and just advancing technology in the marketplace. But it's still staggering to see Apple transition from solely computers, to being a frontrunner in the marketplace, even if there is some competition.
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ReplyDeleteApple has grown over the years to become one of the top computing companies in the world. I agree that Apple can claim it is #1. But Apple like other companies sometimes have to cheat. Apple slowed down people's phones because they didn't want people to realize they had a damaged or corrupted battery. If no one had figured it out, it would have stayed this way. Apple uses normal psychology to win over customers because they provide customers with gadgets that appeal to their senses. Take for example the bezel-less phone they are building. Even though it may perform a little worse from other phones, it just appeals to your eyes and wins you over.
ReplyDeleteAgastya Asthana
It’s interesting to see the huge growth that Apple has experienced in recent years, especially in regards to finance. As a consumer of Apple products, I understand why the company has been so successful, but am also happy to hear about the possibility of lower prices. Tech companies have been making their products extremely expensive recently and are earning more than enough profit to cut costs.
ReplyDeleteObviously, Apple has been making a lot of profit with all of the new Iphones especially the Iphones before the Iphone X came out. If their sales are so good, then their prices should lower but the price of the Iphone X is $1,000. That seems a little unreasonable to me. In the future it seems the Iphones will only get more expensive even though they company is making more money. Plus, there have been more malfunctions recently even though the new models are more advanced. Do you think because of more of these advancements the prices will remain to increase for every new model?
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ReplyDeleteI agree with the statement about Apple because it is sure a growing company and as we can see in the past 10 years, it has become one of the most popular phone brands to date. It sales reaching over 50 billion in one year is sure a feat, but I do disagree with some of the statements. Apple may have been the top tier brand by a long slide 2015, but now we see companies like Samsung and Google making compatible models that also draw the eye of consumers. Though Apple still may be on top, the future may put them in the mix of other companies. I myself sure are intrigued by the Samsung Galaxy Note 9 and other models that might look better than Apple models. So what will happen to Apple's profits in the next decade? How will they fare with other brands? How will their phones compare to other models? Only time will tell.
ReplyDeleteWhile I agree that Apple has been on the rise for the past decade or so, a lot of that can be attributed to their products being seen as new and unique for the time. If you look at the past few years, their annual income has been fluctuating somewhat. Part of this is because Apple besmirched their own name. Recently, they revealed that they have been slowing down older iPhone models and draining their batteries in an attempt to get people to buy newer models of phones. The bulk of people who buy iPhones will not buy a brand new phone whenever a new one comes out every couple of years. This, coupled with the rise of Android phones as of late, will prove to be detrimental to Apple’s name and market share. In order to amend this, Apple will have to do something that makes their new phone actually worth buying, instead of just making it bigger or increasing the screen resolution.
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