Course Project Summary

IPHONE 6 PLUS IN THE ECONOMY 6

IPhone 6 plus in the economy

Name

Institution

IPhone 6 plus in the economic growth

Fluctuations effects the sale of the iPhone 6 plus

It is said that around the start of 2015, reports came in that Apples IPhone 6 plus were responsible for the ten percent economic growth witnessed in the U.S. The claim was further featured at a 1.9 to 2.5% U.S growth rate in its economy between 2014 and the first quarter of 2015.based on the productive value of all final American products as well as its generated revenue got from IPhone 6 plus sales mathematically, it is evident that the apple device was responsible for 0.25% or 0.3% of its change in GDP meaning this product was 10 to 15% conventionally economical. This changed with inflation crisis experienced with time. Inflation lowered the country’s economic growth to a common market economy that it’s previous position on the world.

Cyclical unemployment

This usually poses a major challenge in the company since it arises due to a large drop off of demand.it is usually observed when there is a drop in sales which means that the rate at which consumers demand for services and goods drops making the business income generation revenue to reduce rapidly (Grant, 2014). Further business deterioration will result to bankruptcy forcing its owner to lay off some of his workers. If this condition persists, there is a high possibility of the entrepreneur closing this business due to loss incurred.

Causes of unemployment

There are different causes of unemployment resulting from different situation like for example; there is frictional unemployment which is observed in many places on a daily basis. This is where we find that mostly new graduate looking for their first job and workers who move to a new town without coating another job. Some people quit abruptly knowing that they will find another job while others take break due to sickness, retirement or even pregnancy making them drop out of the labor force.

Other cause may be due to the economic growth experience at the time.it is believed that as the economy evolves, there are unavoidable mismatch between employers needs and workers job skills. This is usually observed when workers are mainly displaced by technology like robot for instance taking over manufacturing jobs and also in cases where you find that the company is relocating to a much cheaper location (Chyi & Chadha, 2012).

Another cause for unemployment is whenever the government intervenes with price controls or the minimum wage laws. This can happen in any industry, organization or even unions. Usually when ever wages are reset to a higher level, unemployment usually result in the process mainly to help the company or industry remain within the same payroll budget.so the company reduces its staff so that it can remain with the few it can manage to pay the mandated higher salary.

Another major cause of unemployment is in regard to skills and manpower, this is where you find that company pays of some of its employee’s dues and provide for them a retirement pension program as they are sent away due to matters in regard to age and in return bring in new energy and labor. This is mostly done in many companies where you find that individuals who have recently graduated from college are interviewed and employed to start working in the company. Many companies use young people due to their ability to multi task and even flexibility (Chyi & Chadha, 2012).

Effects of unexpected inflation.

Inflation is usually unlikely condition which is not usually embraced by many. This condition comes with a lot of effects which are likely to affect a person’s business or company as a result. Like for instance in the Apple IPhone 6 consumer demand, we find that as inflation comes about, we find that may consumers who used to buy the Apple IPhone 6 gargets and accessories are now shifting to other cheap gargets (Killian, 2015). Apple manufacturers say they spend a lot of money in the development and design of its product which include the operating systems, numerous software applications, hardware and other related services.

Apple also go further to point out that its competitors avoid all these cost and go about making their products in complete resemblance with those of Apple and sell them to the public at a much lower cost to customers who are unaware of these activity. Since the customers are not able to judge the original accessory from the duplicated one, he ends up buying the duplicate which in return does not last for long and the Apple Company’s name is destroyed and drugged down the mud by those unhealthy competitors (Grant, 2014).

In cases of inflation we also find that the Apple retail partners could go out on business since it is known for its record of selling allot of its gadget and phones at stores operated by cellphone service providers. Since they have most useless margins, Apple can easily be taken out of the market by other phone manufacturing industry since you find that the most sold products are those from Apple and many individuals would likely go for Apple products and leave other products by other manufacturers in store which is not usually profitable to the store owners.

Conclusion

It is said that a good product sells itself. This is true according to the research done in regard to Apple IPhone 6 which has been sold worldwide for its exclusive features.it is therefore very important that anyone owning a company should do his best to provide the best products for its customer any day anytime anywhere. Quality should be your number one aspect in product manufacture.

References

Chyi, H. I., & Chadha, M. (2012). News on new devices: Is multi-platform news consumption a reality?. Journalism Practice, 6(4), 431-449.

Grant, D. B. (2014). Trends in logistics and supply chain management: a focus on risk. Journal of Supply Chain Management, 8(2).

Killian, K. E. (2015). The Long Tail and Demand Creation in the Legal Marketplace. Hastings Bus. LJ, 11, 157.