Question

Looking at Apple inc today, what is Apples current business environment like, financially, including the initial reaction of the company to the situation and the initial position taken by political actors and other stakeholders. Specifically the tariff war, and the loss of sales the past year.

Answer 1

ABOUT APPLE INCORPORATION --

APPLE INCORPORATION is a multinational company . It have its headquarter in Cupertino, California . They us to produce the consumer electronics, computer software, and online services. on April 1, 1976 Apple evolves sells and supports a variety of personal computers, music players, mobile phones, and computer software’s and hardware accessories.

THE CURRENT BUSINESS ENVIRONMENT OF APPLE INC. ---

This corporation is having a good status of the business environment as the sell of there product is getting speed now a days , its totally spreading all over the globe an people are liking its features and the technology they use in there products . Mainly , due to there uniqueness from other same products in the market people are liking it . Due to which they always use to satisfy there customers in many different ways and upgradation of the product so that more and more people will get attracted and there workers , employees and stakeholders will also get motivated and put more of there efforts towards the company .

ON MAY 5TH when the present president Donald Trump has announced the hike in the tariff planes , as apples products are mainly produced and imported from china there was a heavy drop in the companies business with china . The drop was more than 10% in the six trading days since the president’s tweet on May 5. Intel in particular may be vulnerable to a deterioration in U.S.-China trade relations, which about 25% on its sales coming from China.

Due to the rise in the tariff charges the export of the product from china to U.S. will rise due to which it effects the business between the countries , they where unable to get the proper equipment for the products and the its leading to low down of the products sale and is going to suffer the negative demand elasticity .

This kind of political actors are very harmful to the businesses not only apple suffers it but other companies also suffers it . But the stakeholders of the company were still very confident over the sale of the products as they are having there permanent customer who have trust over the companies products and are waiting for the new launch of the product , they will going to buy the product even if the products price will rise due to the tariff rise . They charged extra charges of tariff from the customers by rising the price and some by paying there own . The investors started fleeing away from the companies having business with China . But at that time apple stayed normal and try there best to provide the flow of the products in the market and fulfilling the demands of the customers on time, due to this the status and the image of the company be the same and the customers trust was there with them .