THE BUCHAREST ACADEMY OF ECONOMIC STUDIES 

 
 (ENGLISH TEACHING) 
 

PROJECT- IPHONE  

 
 
SRUDENT: 
Iuliana Păduraru
SCIENTIFIC COORDINATOR: 
Lecturer PhD. ADRIANA MICLEA

 
Bucharest 
2021  
THE BUCHAREST ACADEMY OF ECONOMIC STUDIES 
 Apple Computers, Inc. was founded on April 1, 1976, by college dropouts Steve Jobs and
Steve Wozniak, who brought to the new company a vision of changing the way people viewed
computers. Jobs and Wozniak wanted to make computers small enough for people to have them
in their homes or offices. Simply put, they wanted a computer that was user-friendly.
Apple Inc. is an American multinational technology company that specializes in
consumer electronics, computer software, and online services. Apple is the world's largest
technology company by revenue (totaling $274.5 billion in 2020) and, since January 2021, the
world's most valuable company. As of 2021, Apple is the world's fourth-largest PC vendor by
unit sales,[9] and fourth-largest smartphone manufacturer.[10][11] It is one of the Big Five
American information technology companies, along with Amazon, Google, Microsoft, and
Facebook.
In the first quarter of 2014, Apple reported sales of 51 million iPhones and 26 million
iPads, becoming all-time quarterly sales records. It also experienced a significant year-over-year
increase in Mac sales. This was contrasted with a significant drop in iPod sales. In May 2014, the
company confirmed its intent to acquire Dr. Dre and Jimmy Iovine's audio company Beats
Electronics—producer of the "Beats by Dr. Dre" line of headphones and speaker products, and
operator of the music streaming service Beats Music—for $3 billion, and to sell their products
through Apple's retail outlets and resellers. Iovine believed that Beats had always "belonged"
with Apple, as the company modeled itself after Apple's "unmatched ability to marry culture and
technology." The acquisition was the largest purchase in Apple's history.
In August 2018, Apple became the first publicly traded U.S. company to be valued at
over $1 trillion and the first valued over $2 trillion two years later. It has a high level of brand
loyalty and is ranked as the world's most valuable brand; as of January 2021, there are 1.65
billion Apple products in use worldwide. However, the company receives significant criticism
regarding the labor practices of its contractors, its environmental practices, and business ethics,
including anti-competitive behavior and materials sourcing.
Macintoshes currently in production:
 iMac: Consumer all-in-one desktop computer, introduced in 1998.
 Mac Mini: Consumer sub-desktop computer, introduced in 2005.
 MacBook Pro: Professional notebook, introduced in 2006.
 Mac Pro: Workstation desktop computer, introduced in 2006.
 MacBook Air: Consumer ultra-thin, ultra-portable notebook, introduced in 2008.
Apple sells a variety of computer accessories for Macs, including the Pro Display XDR, Magic
Mouse, Magic Trackpad, and Magic Keyboard.
MARKET CONSENTRATION
The Herfindahl-Hirschman Index (HHI) is a commonly accepted measure of market
concentration. It is calculated by squaring the market share of each firm competing in a market
and then summing the resulting numbers. It can range from close to zero to 10,000. The U.S.
Department of Justice uses the HHI for evaluating potential merger issues.
The closer a market is to a monopoly, the higher the market's concentration (and the
lower its competition). If, for example, there were only one firm in an industry, that firm would
have 100% market share, and the Herfindahl-Hirschman Index (HHI) would equal 10,000,
indicating a monopoly. If there were thousands of firms competing, each would have roughly 0%
market share, and the HHI would be close to zero, indicating nearly perfect competition.
The U.S. Department of Justice considers a market with an HHI of less than 1,500 to be a
competitive marketplace, an HHI of 1,500 to 2,500 to be a moderately concentrated marketplace,
and an HHI of 2,500 or greater to be a highly concentrated marketplace. As a general rule,
mergers that increase the HHI by more than 200 points in highly concentrated markets raise
antitrust concerns, as they are assumed to enhance market power under section 5.3 of the
Horizontal Merger Guidelines jointly issued by the department and the Federal Trade
Commission (FTC).
HHI=s12+s22+s32+
Where:
sn2=the market share percentage of firm n expressed as a whole number, not a decimal

Samsun
Market stare g Huawei Apple Xiaomi Oppo Vivo Other
1Q'16 23,30% 8,30% 14,80%   5% 4% 45%
2Q'16 22,40% 8,90% 14,80%   5,30% 4,10% 46,60%
3Q'16 19,30% 8,70% 11,60%   4% 6,60% 49,80%
4Q'16 18,20% 10,80% 17,90% 6,90% 6,30%   39,90%
1Q'17 20,80% 9% 13,70% 3,40% 8,20% 6,80% 38,10%
2Q'17 22,60% 9,80% 12,10% 5,80% 7,10% 6,60% 36%
3Q'17 22,30% 9,50% 11,90% 7% 7,70%   41,60%
4Q'17 18,20% 10,80% 17,90% 6,90% 6,30%   39,90%
1Q'18 20,50% 10,50% 14,10% 7,40% 7,30% 6,10% 34%
2Q'18 19,30% 13,30% 11,90% 8,80% 7,60%   39%
3Q'18 18,90% 13,40% 11,80% 8,50% 7,90%   39,00%
4Q'18 17,30% 14,80% 15,80% 6,80% 7,70%   37,50%
1Q'19 19,20% 15,70% 12% 7,90% 7,30%   37,90%
2Q'19 20,40% 15,80% 10,50% 9% 7,60%   36,70%
3Q'19 20,40% 17% 10,50% 8,30% 8%   35,80%
4Q'19 17,30% 14,30% 17,20% 8% 7,50%   35,80%
1Q'20 18,50% 14,20% 13,70% 9,30% 8%   36,20%
2Q'20 18,60% 18,40% 13% 8,90% 8%   33,20%
3Q'20 22% 14,10% 11,10% 12,10% 8,20%   32,50%
4Q'20 16,20% 8,90% 20,80% 11,30% 8,90%   33,90%
1Q'21 20%   15,50% 12,90% 10,20% 10,20% 30,90%
2Q'21 17,60%   15% 5,50% 10% 9,80% 31,90%

The Herfindahl-
Hirschman Index
1Q'16 2896,82
2Q'16 3016,47
3Q'16 2480,04
4Q'16 2523,2
1Q'17 2277,98
2Q'17 2161,78
3Q'17 2568
4Q'17 2447,6
1Q'18 2033,57
2Q'18 2347,19
3Q'18 2331,67
4Q'18 2279,75
1Q'19 2308,85
2Q'19 2261,7
3Q'19 2229,94
4Q'19 1957,51
1Q'20 2192,51
 2Q'20 2098,97
3Q'20 2075,92
4Q'20 2130,4
1Q'21 1969,55
2Q'21 1778,66

During the years the smarthpone industry as resaulted from HHI index tended to be
moderatly concentrated (like in 2020-2021) and highly concentrated (like in 2016-2019).

Demand Curve
Q sold
(millions Substitute price
Iphone ) Price $ Samsung Complement charger Income$
2011 72,29 649 400 20 54,673
2012 125,05 649 550 20 54,596
2013 150,26 649 599 22 56,479
2014 169,22 649 650 24 55,613
2015 231,22 649 600 26 58,476
2016 211,88 649 700 26 60,309
2017 216,76 699 750 28 62,626
2018 217,72 999 720 29 64,324
2019 182,2 1099 850 29 69,56
2020 196,9 1099 1000 29 67,521
 Average 681,9 25,3 60,4177
Std 165,7725684 3,622460797 5,410366306
v 24,31039279 14,31802686 8,954935898

SUMMARY OUTPUT

Regression Statistics
Multiple R 0,94948
R Square 0,901512
Adjusted R Square 0,822721
Standard Error 20,9377
Observations 10

ANOVA
Significanc
  df SS MS F eF
5015,95 11,4418
Regression 4 20063,83 8 4 0,009905
438,387
Residual 5 2191,936 2
Total 9 22255,77      

Coefficient Standard Upper Lower U

  s Error t Stat P-value Lower 95% 95% 95,0% 9
0,12922 0,90221 482,680
Intercept 23,1032 178,7834 5 7 -436,474 6 -436,474 48
0,29940 0,12930
Price$ -0,1059 0,091498 -1,15737 4 -0,3411 6 -0,3411 0,
Substitute price 0,71559 0,50625 0,30497
Samsung 0,066411 0,092805 9 6 -0,17215 4 -0,17215 0,
3,79422 0,01270 33,8909
Complement charger 20,20328 5,32475 1 3 6,515574 9 6,515574 33
 0,38688 9,06371
Income$ -5,2913 5,584345 -0,94752 1 -19,6463 1 -19,6463 9,

Supply Curve
Cost of production
Iphone Q sold (millions) Price $ $ Salaries
2011 72,29 649 196 39,756
2012 125,05 649 207 57,854
2013 150,26 649 194,85 84,451
2014 169,22 649 211,5 102,292
2015 231,22 649 211,5 170,991
2016 211,88 649 224,8 193,437
2017 216,76 699 247,51 241,272
2018 217,72 999 370,25 258,578
2019 182,2 1099 470,5 248,028
2020 196,9 1099 406 258,549
Avearg
e 273,991 165,5208

Std 101,692835 87,33583107

v 37,11539249 52,7642635
SUMMARY
OUTPUT

Regression Statistics
Multiple R 0,921894
R Square 0,849889
Adjusted R Square 0,774833
Standard Error 23,59676
Observations 10

ANOVA
Significanc
  df SS MS F eF
6304,97 11,3234
Regression 3 18914,93 5 5 0,006969
556,806
Residual 6 3340,841 9
Total 9 22255,77      
 Coefficient Standard Upper Lower Upper
  s Error t Stat P-value Lower 95% 95% 95,0% 95,0%
2,79784 0,03125 305,274
Intercept 162,8507 58,20569 8 2 20,42649 9 20,42649 305,27
0,71234 0,44752
Price $ -0,08399 0,217221 -0,38667 4 -0,61551 9 -0,61551 0,4475
Cost of 0,73802 0,94706
production $ -0,15828 0,451732 -0,35038 3 -1,26363 9 -1,26363 0,9470
0,00189 1,09134
Salaries 0,744901 0,141582 5,26125 9 0,398461 1 0,398461 1,0913