Free «Current Event Article» Essay Paper

Nowadays, the economic situation in almost all states demands the rapid change from the financial world. This is one of the prominent reasons why it is more than significant to follow the political and economic changes. The article under consideration is entitled “Apple Earnings Report Preview Q4 2012: Will The iPhone, iPad Save Sales Until The Holiday Season?” Its aim is to touch upon the latest news in the business and trade situation of one of the largest companies in the world.

Taking into consideration the fact that Apple is one of the key producers of electronic devices, it is evident that it plays an integral role in the financial and even political situation in the country. First of all, it is one of the main parts of its fungal development and overwhelming success. The production of iPhones and iPads is indispensable for the consumers all over the world. Moreover, the export of these products and their production in the U.S.A. as well as in other countries has a considerable influence on the company’s financial situation and the international economic and political relationships between an abundance of states. Therefore, it is noteworthy to observe any detail of the business and trade strategy of the company for the economists, politicians, and those who study international trade and take part in any economic course as any rise or decline peculiar for this producer is of interest. It can have both negative and positive results. Furthermore, the sales of the company is an excellent example for the analysis and making conclusions concerning the way of making business successful and profitable. This is one of the issues economics deals with.

 

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Dave Smith, the author of the article, admits that today, Apple has breaking news: it has launched a new product, which is expected to stimulate the economic growth of the company. On the other hand, the situation did not seem optimistic enough during the recent period. The light sales became the reasons why the investors of the producer have doubts about the success of the company. They notified that the sales decrease can have a negative impact on the income of Apple. The investors’ doubts lead to the fall of share prices. In spite of the fact that at the beginning of September, they were noticed to reach their peak, which was provoked by the consistent economic growth, the light sales made the shares fall. The process of shares price change can be demonstrated by the diagram provided below:

The only factor which can give an added gloss to the situation is the start of the production of the iPhone 5. More than 5 million of them were sold during the first weekends. The incredible demand of iPhones 5 made it possible to notify the economic growth of the state and the company in particularly. Moreover, the fact that Apple is going to sell about 5 mln of Mac computers besides iPhones and iPads proves the chief financial opportunities of the firm. Furthermore, the export activity of Apple is quite promising, but the investors want to observe its details. Having an influence on the economic and financial strategy of various countries, it is necessary to analyze it not only for the investors but also for the politicians. China is the second largest market in the world, and it is beneficial for Apple to burst its sales there. Apple has already been working on this market, whereas India is expected to receive new products of Apple on its market. Another piece of news from the company is its plan to launch the iPhone 5 on this market.

Apple’s earnings of the Q1 2013 are going to include the iPhone 5, fourth-generation iPad, fifth-generation iPod, seventh-generation iPod Nano, 13-inch Retina MacBook, iMac, which was redesigned so that to attract more consumers’ attention, and Mac Mini, which was also updated and renovated. This news made it possible to predict the overall income of the company and its input in the national and the international economics. The optimistic forecasts improved the situation, and, on Thursday, the share price increased; it was $619.

What is more, the author of the article underscores that the product cycle of Apple has to be examined. Its pros and cons will be more than obvious as the launch of new products will be tested. The income of Apple during the next quarter will be a proof of all strong points of the company’s business strategy on the whole and the issues which need to be improved or overviewed both in the market of the U.S.A. and the markets of other countries where the products of Apple are available.

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In conclusion, it is noteworthy to admit that Apple is one of the key members of the economic, financial, business, and trade world. This is the reason why the launch of a new product can have either a positive or a negative impact on its income and overwhelming success as well as the fungal development of the company. Furthermore, it has a considerable impact on the consumers’ decisions not only in the U.S.A., China, India but in other states as their citizens gain one more opportunity to make their mind to choose the product which is considered to be appropriate for them. On the other hand, the success of iPhone 5 as well as other new and updated products of Apple is open to question as it is impossible to state it because the income of the company during the next quarter is unknown. In any case, the new product cycle of Apple is expected to regain the stakeholders’ trust and to increase the price of its shares.