This also made digital music affordable to the consumer who may have resorted to illegal downloads in the past which in turn ensured that the music industry was getting paid for their product as well. The 99 cents per song download provided for 70 cents to be paid to the record companies and the remainder (29 cents) was Apple profit. By August 2005, some of the larger record companies felt that their product was underpriced and requested that flexible pricing be instituted. Music executives felt that Mr. Jobs did not have any incentive to raise prices because it would affect the sales of his Apple MP3 devices (Brickley, Smith & Zimmerman, 2009). However, this was not a shared opinion by all, the fear was that the market might not be stable enough to survive a price increase when illegal downloading was rampant among file swapping sites.
This is because as price falls consumers can afford more goods as their real incomes increase and they feel richer. Real income is the bundle of goods and services that an individual can purchase. As we move from A1 to A2 utility increases from U1 to U2 because we move to a higher indifference curve so now the individual can now consume a better bundle of goods. This backs up the non satiation assumption of consumption which states more is better thus when we increase consumption total utility increase. The four axioms of consumption: Transitivity, Non-satiation, Marginal rate of substitution in consumption and Completeness must be met in order to be able to draw
Macs are Better than PCs In the last five years, the company of Apple has grown from 60.5 to 323.3 billion dollars, more than a 430 percent increase. During that same time period, Microsoft’s increase was only nine percent (Gary Ng). Most PC users are only biased, to their opinions against Macs, because they have no knowledge of them. It is important, before taking any side of an argument, to do research on the products being discussed. After research has been performed, it is clear that Macs are the better choice computers to own.
In the UK, the average growth rate since 1945 has been about 2.5%. Governments often try to increase the growth rate because it will have various advantages. Firstly, higher GDP implies the economy is producing more goods and services and therefore consumers can enjoy more goods and services. If human welfare is linked to consumption then growth will benefit society. With higher GDP the govt will collect more taxes; this is because people will pay more income tax and VAT.
Income tax changes affect aggregate demand in various ways. If people had higher disposable income as a result of low income tax rates aggregate demand would increase. When aggregate demand increases firms would have to invest to meet it and this in turn leads to an increase tax revenues. This suggests that low income tax rates are important because they allow for wealth to be created. With increased wealth an economy is more likely to grow because consumer expenditure will increase a large component of aggregate demand.
Questions should have come about sooner based on the fact that the supplier price was lower than the market value for apple juice. John Lavery the vice president of operations received test and information from employees that indicated something wasn’t right with the apple juice but choose to look the other way because the juice had no harmful effect on babies. Once executives found out about the problem they urged Hoyvald to switch suppliers and recall the apple juice. He was hesitant because the company would have a substantial loss of approximately 3.5 million if he moved forward with a recall. Another reason he did not want to do a recall was based on his promise to his superiors that he would turn a 7 million profit for that year.
But when the IPhone came the Walkman or tape player became obsolete because you can play all your music on the IPhone. What came with the IPhone was iTunes. Now we can just buy a song we like instead of the whole CD and its only 99 cents instead of 20 bucks or more for the whole CD. One of the amazing things about the IPhone is the apps. What are the Apps the apps are games, news, sports, productivity like a calculator, studying for your permit test to drive, learn Spanish etc., there is over a half a million apps to better yourself as a person and a thinker.
Based on this Apple develop iTunes which was an inexpensive but a legal way for customers to download and listen to the song they wanted. The customer now used their iPod to download from iTunes; both products were Apples so they have now cornered the market. The first phase is the introductory phase where the product is introduced into the market place. When Apple Inc. introduced
With a new restructure in mind, EMI management planned to make a joint announcement with Apple Inc.- being the first major music company to offer its digital catalog free from digital-rights management and a higher sound quality. This new service would sell at a 30% premium. Consequently, past decrease in revenue had strained the company financially, leading them to cut their current dividend payment from 8p-per share to a 2p-per share dividend. Theory: The main issue to address in when deciding if a company should declare a dividend is it’s financially feasible for the company to do so. However, there’re many other factors to include such as: *
iPhone 5S vs. Samsung Galaxy S5 Recently, Samsung has released its new flagship device the Galaxy S5; possibly to steal Apple’s thunder with their latest and greatest, the iPhone 5S. You can definitely gather the advantages with the Galaxy S5 feature set, but to what degree? Does the iPhone best this new flagship in other areas? There is only one way to find out. In the past Samsung has been known for problems that I like to call “feature spam” It was very apparent last year with Samsung’s Galaxy S4, Samsung has developed a habit of stuffing as many gimmicky new features as into its flagship device, thinking the features will appeal to customers.