EU’s bailout conditions for Cyprus – How it will affect future bailouts

The world banking sector and the global economy were struck by the biggest news so far in the industry, the bailout deal of EU in Cyprus. It notes that this programme of the EU spares deposits at €100,000, which charges 6.75% of tax on all depositors of banks in the island. This will lead to the closure of Laiki Bank as its €4.2 billion deposits over €100,000 will definitely be put into a bad bank deposit, which only means that these deposits could be lost entirely. It follows that all investments of its lenders will also be lost. Cyprus Bailout

The so-called Cypriot rescue is regarded as a watershed reflecting how the Eurozone agreements with the failing banks, which compelled the European leaders to commit to the idea of pushing back the risk of bank bailout payments vested to taxpayers and the private investors. The final agreement with regards to the €10 billion bailout only aims to safeguard the country’s prospects although it tends to be hurtful to some, especially to depositors. In fact, the euro as well as the European bank stocks suffered from losses with the primary objective of bank deposit safety in future bailout.

Eurogroup president Jeroen Dijsselbloem believes and predicts that the skittishness of the investors may result in a healthier financial sector as it could possibly increase financing cost for the failing banks. Dijsselbloem believes this approach as a sound economic theory. He contends and encourages people in the industry to think and aim for an instance where direct recapitalization need not to be considered anymore.

The independent financial experts note the significance for both the European Central Bank (ECB) and the Eurogroup to give the bailout hoping that it could be considered an outline for the future bailouts of some countries including Italy and Spain. Mario Draghi, ECB president, warns the emergence of larger systematic risks although Cyprus may just have a small economy.

The bailout rejection of the Parliament results in the country’s approach of turning to Russia to ask for assistance so that its financial sector will not be meltdown. Russia will then be greatly affected if the bailouts were approved. Meanwhile, the European Parliament members are discontented with the proposed bailout conditions. They even criticized the bailouts as it tends to remove the protection guaranteed to the small-scale investors and damage single market as it circumvents the deposit guarantee laws of the European Union.

In line to the issue whether or not the current Cypriot bailout can be a model for future bailouts, many critics and politicians in the Eurozone hopes to see that bank investors and shareholders bear the burden of the crisis and share to its risks. Meaning to say more is at stake when compared to the identification on how to manage the insolvent financial institutions. This could be attributed to the bailout strategy that the EU has been following remembering the Lehman Brothers collapse where taxpayers were assumed to be responsible for the fallout. It only leads failing banks to keep their artificial backing while the creditors and shareholders were spared.

So far, the financial industries have calmly reacted to the bailout conditions set for Cypriot banks. With this, some analyst argue that there is nothing to worry about the implementation of the bailouts. This may not be easy for the European Union leaders to make a resolution for the crisis in euro debt. There are also predictions that this could trigger conflicts with the Eurozone and could possibly affect bailouts in the future. As a result, battle on the financial market, specifically in the banking sector can be waged.

How inflation affects us all

Basically, most people think of inflation because it has something to do with our money which may also reflect just how we spend our money. This is where the concept of inflation comes in. By definition, inflation is the increase or decrease of money’s purchasing power. It is being reported in economics in terms of change in rates. It generally hurts our buying power because increasing prices require us to pay more for the exact or same services and goods. Well, you are lucky if you are an income inflation recipient. On the contrary, our power to purchase these goods and services declines when the increase of our income is slower than the general inflation even if you are earning more.

Inflation’s causes tend to be varied as it does not equally affect everything. This economic phenomenon can be attributed to the increased production cost of a product or service due to factors like product scarcity, high interest rates and tax increases. It may vary from little to the extreme level. It is being measured through the economy’s entirety although there are certain products that seemed to be more vulnerable to inflation because of certain circumstances, while others may have their own variables that help reduce their cost. Among the other reasons for inflation in the economy are the demand-pull theory, the federal government deficit, the cost-push theory, and the excessive monetary growth.

How does inflation affect us then? The declined purchasing power of dollar and its depreciation are the immediate effects of the inflation. Take into account that dollar depreciation is really hard among the retired individuals who have fixed incomes. So it will be necessary for us to rearrange your own budget if the income we are holding now has lesser value when use to purchase goods or services. This may even ask you to use more currency in purchasing the same products of services.

Inflation has a great impact on our economy since economies are organized according to the value of currency inside and outside certain country. The economic system of the country is dependent on the monetary value they are using to keep its economic stability. This suggests that all our financial interactions are negotiated according to the value of dollar against the currency of another country. Notwithstanding the fact that inflation emerges gradually, it is still noticeable.

It is true that inflation or prices increases investments, allowing investors to preserve their wealth’s value even though currency price decreases. It lowers the value of loans in banks, which helps mitigate the burden of students and homeowners. However, increase investment may result in brokerage firm and hedge fund speculation and mismanagement. It increases export price, which pushes other countries to find for cheaper deals. A devalued currency suggests that imports are more expensive and that increase in imported goods prices results in higher inflation. This entails that low-income and fixed families have no capacity to keep up with the increasing prices and only damage their standard of living.

To address the effects of inflation on our economy and the whole community, inflation management is imperative. Many governments attempted to maintain low inflation level in order to enjoy its benefits without suffering from its effects. Central banks have the capability to moderate inflation through the regulation of lending and interest rates. Governments may also fix the costs of goods or fix the wages to prevent rapid price increases. They are also manipulating the demand and supply of these goods by imposing regulations for import and export trade.

So, no matter how inflation affects us, there are still ways we can follow so that inflation rate will not hurt us that much.

What Is Arbitrage And How You Can Benefit From It

Generally, arbitrage is referred to as the means of purchasing low items at a point in time or in a certain marketplace at lower price and then selling it at higher rate days or months after. It is considered a low risk strategy designed for traders or investors. It is often associated with options arbitrage, currency arbitrage, sports arbitrage, equity arbitrage, derivatives arbitrage, and stocks arbitrage. Trading through arbitrage starts with the recognition of certain stock or bond to be more expensive when compared to the other type of financial instrument. Take note that there are different strategies of this type of trading namely a spread trade that involves two expiration points in the same security, trading instruments with different price points, and trading between two varying instruments.

Traders in the stock market usually exploit the opportunities offered by arbitrage. Purchasing and selling things at different markets is regarded as the easiest measure for this trade. Here, traders are allowed to buy a stock on foreign exchange where price remains unadjusted for the fluctuating rate of exchange. This only suggests that the rate of foreign exchange stocks is undervalued when compared to the local exchange rates. Traders then benefit from the profit shelled out of this difference.

Arbitrage trading allows you to get items at the lowest possible price and sell them later at another market or could be in the same market at higher prices. Some traders even do arbitrage between online giants Ebay and Craiglist and enjoy doing it. These sites make your search of probable items to trade through their listings. This also allows them to get knowledge on their fair value; thereby giving them hint whether or not to pursue their trade.

In article arbitrage, traders purchase articles at their cheap price tags and then sell them in the same market or at other marketplace at higher prices. This measure is beneficial for the writers, not for everyone since not all people know how to carry out this and make profit from it.

Another area where many individuals benefit trade is through sports arbitrage. Arbitrage betting is now common in sports like cricket, football, tennis, snooker, darts, golf, and hockey. Other than its legitimacy offering, this type of trading is also tax free, flexible, recession proof, and money and time saver. Take into consideration of the fact that such type of arbitrage requires the suitable arbitrage software since it is not every person’s forte.

There are also other great opportunities offered by arbitrage trading, which enables an individual to develop it effectively just as an online enterprise. It can even be a smart investment that may benefit high-net-worth businessmen’s portfolios. Data even show how it outperforms inflation and bonds, which could be used by conservative investors in diversifying their return resources. It is regarded part of their portfolio requiring investors to view it to see the allocation of their own fixed income portfolio. What makes arbitrage in this case attractive then is its low correlation with fixed income. This suggests that the volatility of the traders’ fixed income portfolio need to be decreased every time a merger arbitrage strategy is added.

Consider the perception that there would never be any type of opportunities for arbitrage provided that all markets were efficient. The sad fact is that these markets seldom remain perfect. What it important here is to bear in mind that there isn’t always an opportunity for arbitrage though these markets offer discrepancy in their pricing between goods with equal price. So no matter how you utilize and incorporate arbitrage to your business, you can always get something in return.

How Interest Rates Affect The Economy

When it comes to matters associated to the economy, myriad factors can be accountable to its success and downfall. One of these factors is the interest rate. Typically, people seemed not convinced to get loans from the bank due to the fact that they find it difficult to pay back alongside the decreased number of home and car purchases.

It notes the benefits acquired by consumers from the effects of lower interest rates on the economy. Just take for instance the bank loan taken by the people to pay their car of house. This would be the case when the interest rates are low. On the other side of the coin, the price of these items decreases so that more and more people can have the opportunity to pay for what they have purchased. This happens when their market is strong. This also affects the investors perceiving less risk in getting a loan and in investing it in something else mainly because they will be required to pay back their lender in lesser amount.

People tend to have more disposable income for use on things they want to acquire in times when they do not have enough sum to pay the bank. This could be more than enough to stimulate the global market with low interest rates. On the other hand, lenders are not benefited from low interest rates as they are able to accrue this to the deposited money in the bank to maintain the stability of the profit. However, interest rates have no effect on the real savings of the people mainly because a disposable income’s increased amount suggests their likeliness to spend it more than to save it.

Take note the possible increase of foreign investment as people overseas prefer to receive larger return of their investment and get it at higher interest rates when they are strong. As a consequence, this scenario heightens demand for dollar, which increases its value in the international marketplace. Decreased interest rates, however, occurs when the opposite happens.

Survey suggests that lower rates are good for the stock market, making other investments not that encouraging and attractive. Bonds and any other fixed-rate securities will not pay as much as the amount paid by other people when the rate of funds is decreased. A lower rate of federal funds decreases the value of currencies on the foreign exchange market. Setting for low interest rates has little impact on consumer purchasing at time when economic recession and high unemployment rate are presented. Liquidity trap can also be encountered upon the failure of the federal government in using the interest rates as a tool in influencing purchasing decisions or monetary policy.

Interest rates can significantly affect other facets of the economy such as business enterprises, government, and households. The levels of interest rates can be affected by the policies set out by the government other than the behavior of the borrowers. But both the lenders and the borrowers compensate for the expected inflation when there is temporary increase of the available money supply intended for the borrowers. Opposite will likely occur when the government will take and adopt a contradictory monetary policy. Should this be the case then borrowers may opt for a contradictory policy with the possibility that it may help lower the nominal interest rates. This only suggests the significant impact of lender-borrower cooperation for success.

In general, interest rates may serve as the driver for the increase of investment, the amount of loans taken by people from the bank, and consumer spending notwithstanding the fact that a greater portion of it is contained within the perception of the customers.

How Does The International Monetary Fund Work?

The International Monetary Fund or IMF is a financial agency under the protectorate of the United Nations, which plays a vital role in the global economy after World War II. IMF is specifically established to make sure that financial system across the globe will remain stable. It serves as a supervisory institution that aims to promote monetary cooperation internationally and to facilitate the international trade growth. This is made possible through the assistance offered to its member nations having problems in their balance of payments and the maintenance of the stability of monetary exchange. It is integrated in significant aspects like managing the aftermath of the 2007-2009 recession along with the credit crisis.

Member countries of IMF give their quota subscription upon their membership. This sum of money will serve as a determinant of the amount allowable for them to draw when crisis struck them. Remember that the quotas also determine their voting rights suggesting that IMF’s power to make decision depends on the highest contributing countries.

The IMF is called as a global financial system watchdog that works through its surveillance works over its members. It is part of the agreement of its members to follow rules with global economic order outcomes like not manipulating their currencies just to fulfill their own needs. The members are the ones who are responsible in presenting their economic data to the IMF for monitoring. This measure aims to ensure the sound economic policies of its members.

Lending activities are included in the scope of IMF’s duties and responsibilities pursuant to its by-laws. It provides loans to its members in times of financial distress and when they failed to pay its international monetary obligations. The disbursement of loans is made through installments and that their payment is associated to the borrower’s compliance with policies on structural adjustment. In turn, borrowers need to implement economic reforms to overcome their problems on balance of payments. Survey also shows that 80 percent of the member countries make use of the fund they receive from IMF at least once. However, IMF clarifies that the development of lending activities is not included in its scope of responsibilities.

Sharing expertise is tantamount to the duties and responsibilities of IMF as it shares its knowledge to all its members for better development of their respective economic policies. This could be done through training in the areas of exchange rate policies and central banking. In fact, many countries in Asia and in Africa benefit from the technical expertise of the agency. Their main reason could be that that such technical know-how help boost financial system’s base.

When it comes to policies or reforms of its member nations, the IMF puts emphasis on the concept of fundamentalism in the market. Take into account that IMF was basically chartered to make corrections on trade imbalances, which is actually one of its major activities. This may also suggest for the devaluation of the currency for the stimulation of reports. This may also result to difficulty among the residents of the country considering that the exports can be more expensive. The deregulation types of the industries controlled by the government may also be included to attract new entries into the market. Moreover, IMF makes defense on its policies based on the reforms it has made that permits the ownership programs of its member nations. Another defense for its policies also depends on the general studies of market reforms’ effect suggesting that reforms strengthen GDPs.

Recently, the IMF is vocal for its advocacy in fighting the global issues of terrorism and money-laundering. It also continues its commitment to enhance the international financial system.

How Google’s Motorola Purchase Will Effect Android Users

google motorolaNow that Google has already made its decision to purchase Motorola, many Android users are now asking whether it will be a good news or bad news for them. Actually, the purchase is regarded as Google’s first time to take direct hand in the business of hardware. This Google-Motorola deal will have an extensive range of effects for the users of Android. What will these implications be? Read through and know yourself whether you too can benefit out from them.

The main catch here is that Google will make its own phones considering that it will be owning one of the biggest Android OEMs. The operating system of Google will be added for the smartphones and the other mobile devices. This allows Google to smoothly integrate hardware and software speed-up the development of other consumer electronics, and deliver Android tablets that are more competitive.

This initiative will provide OEM modifications are not really necessary and can harm the experience. The big hits in the world of business here are the devices like Droid and Droid Pro line. These features will then lead to Android codebase for a long period of time. In other words, such approach will only give Android users more customer- and business-friendly ideas.

In the past years, issues associated to Android patent became everyone’s nightmare. But with this deal, Google gets greater patent backing with Motorola’s more than 12,500 patents as well as over 7500 pending filings. This helps the company penetrate into the level of patent holders. And this will also affects the users as Google requires something that can defend Android as it is equipped with the ability to buffer platform from legal issues, especially on patent. Motorola as its in-house brand will make user interface without a place in the business.

Google just bought Motorola’s arm Mobility turning the cable box business into Google TV, which becomes part of the living room of almost everyone. This allows users to gain access to On-Demand content considering Google TV software to have been at the center of the whole experience. Such feature seems to be lacking with several third-party solutions. It even allows the company to leverage cable operators’ relationship with Motorola encouraging the purchase of Google TV on standard DVR set top box.

Take note that Motorola locks boatloaders on its Android phones that blocks users who have interest in modding and does not allow the installation of unsigned software on locked devices. But with the Google-Motorola deal, it is assumed that this issue will come to an end. In fact, Motorola itself announced its change to this approach as it promised to manufacture next generation devices that are unlockable. This indicates the incorporation of an officially sanctioned unlocking procedure although locked phones are still available.

Android OEMs support the deal with the ongoing commitment of Google to Android. This indicates the reassurance OEMs receive from the company that nothing was changed from their respective perspective for the benefit of their Android users. It also paves the way towards the enhancement of OEMs commitment to Microsoft.

Generally, the deal between Google and Motorola provides the latter company legal force in defending Android and keeps the platform much stronger. This opens for new opportunities for Android uses to make use of its more or additional features to heighten their interest. It is then expected to develop new generation of additional daring stock of Android devices with strong backing from Google. This opens extensive range of choices for phone end users from Android features. It also serves as the answer of users’ plight for in-depth integration of both hardware and software for the Android devices of users.

How Declaring Bankruptcy Will Effect You

Bankruptcy Credit Card DebtFiling for bankruptcy is an indicator that you are already at the end of your financial rope. This will serve as your last option to deal with creditors hounding for your payments, accounts charged against you, and the danger of your house and/or business to be foreclosed. Bankruptcy then will mark as a fresh financial start as your previous debts will be discharged giving you an opportunity to a life free from financial burden.

Once you file for bankruptcy, you will be expecting immediate financial relief as all your creditors will stop collecting payment from you. This will free your from any forms of harassment from your creditors. It will wipe out your slate freeing you from your financial obligations. However, there are exemptions here based on your own discretion such as payments for your house or car, or the ones mandated by the court.

Yes filing bankruptcy will clean your old debts in your own credit report, but the application for bankruptcy will still be reflected in your credit file. It will actually stay in your document in 10 long years. This will affect your interest in getting personal loans, credit cards, or other debt offers in the future because you will be considered a high risk by lenders. Other implication in this case is the availability of credit at higher interest rates or worst when lenders require you to ensure first the security of the credit you are applying for.

Another implication of bankruptcy is your ability to find for an employment and to lease for any rental property. It is still important for you to disclose to your interviewee information of your bankruptcy to get rid of losing your chances for employment although it has been years that passed. There are also meticulous rental proprietors who will conduct a background check of you credit history before granting your interest to lease. There are also property owners who will refuse to provide housing to those who have already filed bankruptcy. You will also be kept from borrowing cash in the future notwithstanding your proposal to pay for higher interest rates when compare to the other borrowers.

Your ability to file bankruptcy in the future will be put at risk in the instance you already have bankruptcy record in your file. The proper way to handle this situation is to consult and discuss things with your lawyer expert in bankruptcy. This professional will serve as your guide in determining whether bankruptcy is the best alternative for your current problem. There are also other instances that the best thing to do is to wait. Your hired lawyer will inform and provide you overview of the possible effects of bankruptcy to your life.

Physical damages aside, bankruptcy filing is very emotional and stressful. It can even take a toll on your own life, self-esteem, and relationship considering that it upsets your very sense of security. This time your bankruptcy lawyer will enter into the scene to help you get out of the dilemma by giving you a plan on how to address your financial woes.

Moreover, individuals filing for bankruptcy tend to be very vulnerable for embarrassment or shame. This may lead to emotional issues that may also affect their physical and mental well-being. Personal relationships with family, friends, colleagues, and loved-ones may be breached because they will be hesitant to trust you again.

Take into account also the fact that not all types of debt can be dismissed in filing bankruptcy. An example for this is the student loan that will actually remain even after you have filed bankruptcy, with lesser number of exempted circumstances.

IOS Versus Android – Which do You Want

Android is most popular in Japan, with 55% of respondents using it, versus 39% for iOS. Android is also number one in a few other countries, including New Zealand (41%), the US (40%), and China (38%), but it does not dominate in any other surveyed countryIn today’s contemporary world, advances in technology are prevalent as tablet devices and smartphones have already penetrated mobile computing and the Web. Technological innovations provide end-users with handheld devices that can be used easily and can execute nearly all tasks. The operating systems responsible for this are iOS from Apple Inc. and Android from Google. Both systems are Web-enabled and touched-based and are run on tablets and smartphones. Notwithstanding the identical features of these systems, they still have minor differences that set them apart.

Majority of the differences of the two operating systems are because of their relative openness. Apple, for instance, sets out strict rules and guidelines for its interface design and limits the extent of its users in customizing its iOS theme. It also restricts the use of third-party code for the maintenance of its stability. Meanwhile, Android users can customize every aspect of their own phone considering that it is an open source operating system. They are permitted to run Flash on their phone that allows users to play games and stream online video. Such flexibility tends to be attractive for users who would like to tinker, but does not lend inconsistency and instability.

iOS and Android differ in terms of their hardware options. Keep in mind that iOS is run by iPad, iPod, and iPhone manufactured by Apple. This suggests that customer should buy an Apple device because the company does not provide license for the use of its operating system on any other devices. On the other hand, Android is very accessible for various tablet and smartphone devices made by different manufacturers. Such varied options include complete tablet and smartphone configurations spectrum giving consumers an opportunity to choose a device that is appropriate for their budget and needs.

When it comes to applications offered by Android and iOS, it is noted that some of the titles that are best reviewed are available only on iOS. This is the main reason why game developers emphasize more on iOS and because of its platform’s stability and the perception that iOS users have the will to spend more on games.

The availability of the iTunes store is one of the major advantages offered by iOS, which gives it an edge over Android. The store permits customers to purchase audio books, movies, music, and television shows straight from their iOS device very easily. It also enables users to manage their video and podcast subscriptions easily. Though Android users can still purchase multimedia, the multimedia market place is fractured by different providers.

Based on demographic results, Android devices seemed to skew more of the male users than its counterpart, the iPhone. Nielsen Co.’s survey reveals that Android users are much younger when compared to the iPhone users. It notes that 55 percent of Android users belong to the age group 34 and below, while iPhone users comprise the 47 percent. Users of iPhone devices are also found to be wealthier than those of Android devices.

Other surveys on operating systems use shows the huge market share of Android for smartphones with android easily leading the market. Androids largest competitors in the smart phone industry are Windows 8 followed by Blackberry.  Windows 8 is a newly developed operating system and is still being adjudicated on by consumers. Blackberry on the other hand has had sharply declining market share in recent times and is in danger of becoming irrelevant.

So you make up your own mind, whats your preference?

How Microsoft Has Continued to Dominate the Competition

2007-microsoftIt is a fact that Microsoft Corporation has become the largest firm for computer technology and applying this technology across various industries. The firm markets an extensive range of programming, application software products and services, and networks in the industry. It has continued to dominate the global competition when it comes to computing platforms with its computing solutions.

History outlines the early success of Microsoft in its provision of the MS-DOS operating system designed for microcomputers. MS-DOS is now considered the most ubiquitous and noteworthy operating system for microcomputers.  Microsoft Windows its the offspring of MS-DOS and is the most widely used software in the home and businesses all around the world.

The computing firm is the leader in the market for its Microsoft Office software and its business suite that includes database, word processing, presentation, spreadsheet, and email software applications. This software is closely coordinated with the Windows operating system and one that is widely used in the business market today. Aside from this software, the company also markets strategic applications for business including SQL Server, Dynamics CRM, and SharePoint Server. Take note that these applications are used by large companies in addressing their data mining, customer relationship management, collaboration, and database requirements.

Microsoft’s software development products are based on the standard programming languages such as SQL, Java, Basic, PHP, and C. They help programmers develop applications operating with and extending the platform of Microsoft Windows. Such programs are used in business environments and throughout the Internet world so as to establish custom-based business solutions.

Other winning points of the company as a prevailing provider of computing solutions in the corporate world are its delivery of innovative, up-to-date messaging and network solutions. It has created a huge market for third-party networking services from reputable corporations like Banyan, Novell and other vendors. This approach marks the extension of its dominance in the application software and operating system markets. It has also established the Exchange Server as a collaborative application server other than just an email. Such platform is now being used by business enterprises in their messaging and email services on local area networks and the virtual world.

Microsoft is a company that is prevalent when it comes to reliable, dependable support, training and services on computing. It sees to it that it only delivers the best with authorized support and training of its products and services throughout the world. Many businesses are using its network of certified support specialists and engineers in training, troubleshooting, and supporting their investments in business technology.

There are also predictions that the firm will dominate the market for tablet computers, with its Windows application. This is manifested by its recently launched Windows 8 operating system which has a greater focus on the integration of its range of products. In fact, there is a lot of talk already out in the market with regards to phones running its operating systems and the impact this will have in helping Microsoft defeat its rivals in the tablet technology sector.

All these indicators suggest that Microsoft is dead serious in sustaining its position as a global leader in terms of providing consumers with the most innovative devices and services. This seems to be a major pivot in the core business model of the company that requires its control of everything until the completion of the whole process from manufacturing to distribution logistics then to retail. The company is even seen to put emphasis on incorporating a leadership strategy in the devices, giving it greater control over the end-users of its products and services. And this will probably give consumers no other option but to use its services leaving its competitors straggling for the remaining share of the market.

Apple’s Reign at the Top of the Tech Industry, Is It Sustainable?

Apple LogoWhat starts to be a small business enterprise operated by two college dropouts, Steve Jobs and Steve Wozniak, Apple Inc. becomes a technological giant. This humble beginning of the company made its way through the top of the technology industry. Such success is attributed to its reputation to have great computers having user friendly interface. Apple tries to put emphasis more on serving home users, while the other rival computer manufacturers and dealers focus more on marketing to big business enterprises.

However, the reign of Apple is not limited only to computers as it later manufactured its iPod and iPhone. Apple continues to grow year after year as it succeeds and develops new innovative technology. The culture of Apple, especially in the technology sector, is one of the things that brought change to the sector. This is primarily due to its rapidly upgraded technologies leading it to become one of those companies that are most valuable and highly profitable in the industry today. The great contributor here is its ability to develop innovative products with great appeal to a number of demographically different customers. It flouts the consumer electronics industry’s conventional wisdom focusing on me-too and low-cost products as well as those with shortened product life. On the contrary, it prefers discrete and constant product innovation that makes its consumers very loyal in using its products. This ensures a high consumer retention rate which delivers higher sales numbers. Apple develops and releases much-copied and innovative products including iTunes and MacBook Air.

Apple has expanded the number of its employees as well as operations outside the U.S. It outsources its manufacturing department in China and the rest of its engineering sites in Tokyo, Japan and Paris, France. In fact it has now 72,800 full-time employees and 3,300 temporary employees throughout the world as of September 29, 2012. Apple also uses its dominance in the market in terms of the working conditions and wages of its employees at the lowest possible price. This way, Apple can retain a greater portion of its turnover as profit.

Apple is keen in applying the concept of value in dealing with its customers. This effective pricing strategy is usually driven by its dedication to the perceived and real value of its customers. Bear in mind the willingness of the customers to pay a considerable amount provided that the products and/or services they receive are of a high quality level.

In terms of revenue, Apple is among the largest technology companies across the globe that are profit-generating. The firm ranks third of all the gigantic mobile phone manufacturers and has 394 retail stores in 14 countries and online store called  iTunes with a global audience as of November 2012.

It is predicted that apple will continue to dominate the technology industry as its plans to release more technological innovations in 2013. Many in the industry believe that there are still many innovative products yet to be released from Apple due to the vast collective knowledge and creativity its employees provide. Among these new offerings would be more options with regards to its next mobile phone for this year. This would be integrated with the increasing momentum with iPad mini and strength with its iPad franchise. As an industry leader in technological advances, Apple has great ability to set conduct standards enriching the commons as it enriches the presence and support of its investors. This makes this technology company a business model that is positioned to dominate its competition into the future.