Reference no: EM132354991

What is economic fluctuation, inflation and causes of unemployment that would affect sales of iPhone 6 Plus from Apple Inc. Economic fluctuations are simply fluctuations in the level of the national income of a country representing growth or contraction. A market economy is not static, It's dynamic. A rise in national income means an economy is growing, while a decline in national income means that an economy is contracting. Economic fluctuations are also used to describe a variation of periods during which the economy is growing and then decreasing, facing what we also call a recession.. Some causes that would make fluctuation in the economy is an increase in aggregate demand, labor shortages, and increase in demand for imports (Revision World). Looking at the sales from iPhone 6 plus perspective, this fluctuation had become on of the influences on the iPhone 6 plus market.

Factors that affected the sales of the iPhone 6 plus are inflation recession, and currency. Inflation period within the United States, general cost of products in market rises thus lead to a decreasing their purchases power for Apples Inc. iPhone 6 plus, which lead to a sale within the United States to decreased. Looking at a period of recession, the United States economy is declining and will take time for them to recover and will make it more difficult for consumers to purchased Apples Inc. iPhone 6 plus and will lead demands to go down. Now currency effects the economic factor for consumers because a stronger dollar generally results in the company being forced to raise its prices overseas, which the potential would lead to reducing demand as buyers balk at paying more for the same.

A poor economy which leads to cyclical unemployment and would affect the sales due reluctant of the product being purchased. A seasonal position could lead to a seasonal unemployment and would lead to high and lows in the sale of the product within the quarters/years. A lack of skills would cause structural unemployment and would affect the overall economy by a decreased in consumers funds for purchasing the product. Also, a lack of desire or motive could lead up a frictional unemployment. Looking at these four factors I do not believe that it will have any impact towards the sale of Apple's Inc. iPhone 6 plus, since it is a consistent type of unemployment. Four causes of unemployment are, job loser, job leavers, new entrance, and re-entrance. Let's say a person loses his or her job or decided to leave for personal reasons like going on a long extend leave or decided to be a stay at home parent. New entrance would be if one recently graduated with a degree but is currently unemployed. However, in the events of an unexpectedly inflation occurrence, I believe Apple Inc. would benefit highly from the sales on the product that were produced before inflation also known as a price windfall. This is because the inflation will enable the redistribution of wealth to the individuals. This will therefore increase the ability of the individuals to buy the iPhone. The demand and supply in the market will increase and therefore pose an increase in the market sales of the iPhone 6 plus. Increased demand and supply will therefore lead to increased demand of workforce and therefore will also increase employment which will also increase their incomes hence the potential to purchase the iPhone.

Apple Inc. iPhone 6 plus was ranked as the bestselling product in 2016. The product had a great impacted in the economy, with a sale account of 10% of economic growth within the United States. Many other economic fluctuations can have some impact within the sales of iPhone 6 plus, and is affected by inflation, recession, currency exchange, and unemployment in the United States.