Apple Research Paper

In: Business and Management

Submitted By mandeepbains252
Words 587
Pages 3
"The cost advantage that arises with increased output of a product. Economies of scale arise because of the inverse relationship between the quantity produced and per-unit fixed costs; i.e. the greater the quantity of a good produced, the lower the per-unit fixed cost because these costs are shared over a larger number of goods. Economies of scale may also reduce variable costs per unit because of operational efficiencies and synergies. Economies of scale can be classified into two main types: Internal – arising from within the company; and External – arising from extraneous factors such as industry size" (1). Apple, to this date, has done a great job applying economies of scale to its overall success. Apple, unlike other companies, does not have multiple brand new different phones or tablets coming out every single year. Generally when Apple has introduced a product in the line of smartphone, tablet, computer or music, it has generally been one device that showcases Apple and that is it. Other companies such as Nokia, Dell or Samsung will introduce multiple lines of phones or tablets when introducing a new product. Since Apple does not do this it is easier for them to streamline components and parts needed all for one item. Apple's devices share multiple components across the board. Many components that are used in the iPhone are used in the tablets and their music software from their mp3 players has been integrated into their tablets and phones. Due to this, Apple has been able to sell some of their products at a price that competitors cannot match such as the iPad that goes for $499 brand new. Multiple hardware parts are used such as the screens and cameras that are interchangeable between the devices. Due to this process, Apple is able to produce many products with the same components and parts. Apple can further take off with increasing its…...

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