Do you believe that Apple is the most valuable company in the world of cash & money? Well we all know that Apple makes a lot of money, well maybe too much money in that they have to ship some of the money from sales off to countries overseas because of high taxes here in the USA. According to CNN Money, Apple has over $246 billion in cash in overseas accounts. In which is absolutely crazy to think about, they even have more cash than the GDP of many countries from Finland, Chile, and many other countries. So why does Apple have all this money in overseas accounts? It's because of extremely high taxes in the US and Apple doesn’t want to lose any of its money it just wants more and more, but to be fair though Apple uses their money to research new ideas for the new iPhones, iPads, Macbooks, Apple Watches, and many other of their technology to make it better than ever before. Plus they have to pay their workers because no one likes to work for free for his or her hard work all day. With all this said, Apple is going to keep on growing and keep pushing the milestones higher and higher every day. Apple is the most valuable company on the S&P 500 which is the 500 largest companies having common stock listed on the stock market, they even passed being worth over $1 trillion dollars and growing.
Above you see a demand curve for the iPhone 7, iPhone 7 Plus, and the iPhone SE. Everybody has different wants and needs for his or her phones so that's why Apple makes so many different types of iPhones. The more products they have the more money they make and they more money they make the larger they become. Apple will always be one of the largest companies in the world based on economics, data, research, and overall knowledge of the company. They might even pass the GDP of the USA one day, you never know what a company is capable of in the world of technology.
Works Cited
“Apple Accelerates US Investment and Job Creation.” Apple (Canada), 31 Aug. 2018, www.apple.com/newsroom/2018/01/apple-accelerates-us-investment-and-job-creation/.
Archanco, Eduardo. “The Price Elasticity of the IPhone Demand.” The Technalyzer, 30 Mar. 2017, thetechnalyzer.com/price-elasticity-of-the-iphone-demand/.
The maker of iEverything had $246.1 billion in cash, and Investments On Its Balance Sheet As Of The End Of Its Most Recent Quarter. “Apple Has $246 BILLION in Cash, Nearly All Overseas.” CNNMoney, Cable News Network, money.cnn.com/2017/02/01/investing/apple-cash-overseas/index.html.
It does seem like Apple is a small country in its self, but I feel like it is a huge part of the worlds economy. Therefore is important to not only the us but much of the globe. On the other hand is there a chance that apple will become big enough to cause huge financial problems in the lives of the middle class eventually?
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ReplyDeleteThinking about the amount of the Apple products that my family alone owns, I do believe that Apple is a very valuable part in the world's economy. The fact that Apple is moving some of their money overseas doesn’t really bother me because I know that people all over the world have and use Apple products, so why should the US get to keep all of the money. Also, I do agree with the final statement that the GDP of Apple could someday surpass that of the US. Apple has a line of products that are very reliable and in high demand, which gives it the right to have a high profit range. Apple has made smart economic decisions on where to put their money and focus throughout the years.
ReplyDeleteI totally agree with your respond. In all reality, Apple has a need to keep all of their money. With all of the new advancements in technology, they are constantly needing more money to expand their array of products.
DeleteApple obviously has lots of money, and some may say they are cheating the system by having billions of dollars in overseas accounts. I get that they are trying to make as much money as possible, but they could be doing other things with their money- such as paying the workers better. There have been documentaries about the work environment that apple manufacturers have and the super low amount of money they get paid. Without them assembling our precious devices, we would not have them and apple would be losing lots of money. Although Apple is growing at a rapid rate, they could consider paying workers a little more. As the sales and the demand curve go up for Apple as new products are released, the need for the workers also increases.
ReplyDeleteApple will always be the most valuable company in the whole world with all the diversity they have. All the different countries Apple have their phones for sale in will always be the top seller in most of the countries especially the United States. There are a lot of competitors but Samsung is right behind Apple with the phone production. It really comes down to what features are available on the phone that’s for sale. Does it have a special feature like Apples new thing where you can put an emoji in your face and you can talk with it. On Samsung’s spectrum they are implementing the facial recognition and that’s something Apple hasn't talked about doing yet. It all comes down to the wants and needs for the consumer because everyone has a different opinion on everything. The debate of Apple is better than Samsung or vice versa will always be happening for at least the next 5 years or as long as they produce mobile phones.
ReplyDeleteSense Apple is growing a an exponential rate and the precises of there protected get increase in value wont that hurt the middle class and the lower classes on getting a iPhone they will be to expensive that the lower class wont be able to afford apple products.
ReplyDeleteIf Apple is the most valuable company in the world, do you thing that there is a possibility that another company could eventually overtake it? Apple is consistently pumping out new products with slight modifications but they have consistent buyers such as I who are loyal to the company, that’s why they keep making money at such a consistently high rate. But do you think that another company such as Amazon will reach Apple and eventually get above it? They recently bought Whole Foods to increase their market, and if they keep making these smart investments, could Apple soon be number 2?
ReplyDeleteApple being a trillion dollar corporation, makes them a huge part of the economy no matter what. The amount of sales Apple makes every year with their new products is beyond anything any other company is able to achieve. Because of this, Apple needs to make sure they make smart decisions about what they are producing and other marketing decisions, because if their products start to fail and their company goes into a decline, it will be a major shock to the economy.
ReplyDeleteApple is undeniably a large company that is able to make more money than most GDPs of countries. They are huge part of our economy, and most people spend money year after year for new iphones with slight alterations made to them. Apple is a successful company because of the technology that they come up with, along with the customers that come back every year. I agree that Apple could in the near future surpass the U.S. GDP due to the new technology that is always being created, the products that are reliable and that people keep coming back for, as well as the demand for their products.
ReplyDeleteApple is undoubtedly one the most successful tech companies in the world and this is because they invest money in new ideas and technology that perhaps other companies may not be as good at. Many people in many countries own so it seems logical to gain more money by shipping money overseas because a tech giant like apple wouldn't want to poor. Apple also pays its employee's really well and in order to do that, Apple needs to have enough money. Apple also increases sales by having loyal customers. My family itself is very loyal to apple products, even a little biased towards them.
ReplyDeleteThis is a great topic and there is great information here. One thing I would say it to pre-read what you write because there were some grammar issues. Apple is doing very well but there is also Amazon right behind it where they can practically sell anything on the market. If they keep growing then Amazon has a chance of over taking Apple. Also, why wouldn't Apple help some other countries out who are in major debt and are in need of help? Finally, Apple products are great and the myth that Apple makes it so you can only have their phone for one or two years could be true so they can keep making more money but we may never know. All we will know is that they are making a lot of money compared to other companies.
ReplyDeleteI agree with the reason that they have some much money that you stated, but also another factor is because how fast they put out new technology. They produce new phones like it's nothing and with those new phones come new updates and those update that for older phones are designed to cause older phones to become useless so they have to buy the new phones giving apple more money.
ReplyDeleteA great topic to explore within the topic of Apple is that Apple and some other companies have designed their product to have a planned obsolesce. This means that older iPhones are designed to slowly stop working as newer iPhones are released. Recently Apple confirmed that they had been sending updates to older phones that would cause them to work slower and other minor problems. Their goal had been to cause people grow frustrated with their model and pay a lot of money to upgrade to a better model. Once the news broke many people were upset that Apple could do such a thing. It would be interesting to explore how the demand for apple products changed when the news broke. It is possible that some consumers were too upset with Apple and chose not to buy anymore Apple products and some consumers could have thought that now that Apple would no longer cause these updates that cause old phones to stop working they would be willing to buy an iPhone. It might be a good idea to compare the revenue brought by the new iPhones compared to the last iPhones.
ReplyDeleteIt is clear to many country's that Apple is one of the most popular electric. The demand curve even shows great evidence that Apple is doing nothing but increasing their production and rate. People also have realized the new phones obviously keep getting more advanced every year, so the price is bound to increase. But what we didn't know is that part of the crazy amount of money Apple has is being sent over seas. I agree that Apple could potentially surpass the U.S GDP in the future, but currently nobody thinks about those things because everyone is just eager to spend more and more money on the latest new Iphone.
ReplyDeleteEllie Reyes
Apple is one of the phone brand's that teenagers and parents are all buying. It is a very popular industry that is continuing to grow because they keep coming out with new improvements and new ideas for their technology.Nobody needs an apple product,they could easily get another phone for cheaper. However Apple advertises and so many people have the product which makes consumers want to have a new Apple phone or a new pair of Apple headphones.
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ReplyDeleteConsidering that Apple is a trillion dollar company, it has a large share in not just the United States Economy, but also the global economy. This is likely because Apple is able to appeal to the demands of a large variety of consumers. They have the IPhones that they are well known for, but also IPads, MACS, IPOds, Apple Watches, and a large variety of accessories to compliment these products. The diversity in the products they create also creates a large consumer base who demand these products. Apple also does a lot of advertising to popularize it's products and make them trendy, again, increasing the demand for Apple products, especially in the younger demographics.. With the diversity of products, and focus on innovation and advertising there is a large it is no wonder that Apple is such a huge global company.
ReplyDeleteApple is such a huge company and has a strong impact on the technology industry. That being said it has a lot of impact on what the demand is, and what people want. Based on the graph that you have provided above, I am not, and neither should anyone else that the demand for the latest and largest phone; the iPhone 7 Plus is the one with the greatest demand. That is not happening for any odd reason. Apple has mastered the art of advertising and targeting certain demographics to sell the new best product to. That being said is there a point where Apple will essentially 'max out' per say? Is there going to be a point in time that Apple will not be able to continue the increase the demand, and drive the demand for each new product up? If that were to happened I would assume that have a total effect the whole sales and marketing goals and procedure in the feature will be greatly effected for the Apple Company.
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