CLEAN : Economics expert comments on Apple results

Apple faces challenges in its traditional business model due to rising wages in China and falling real income in Europe and the US. Despite these challenges, Apple remains financially stable with over $100 billion in cash. The company needs to diversify into new product categories beyond the iPhone. Apple's services business, including the App Store and Apple Pay, is growing and offers high margins. However, market saturation in developed countries and a slowing Chinese economy pose growth challenges. India presents opportunities, but its growth is not as smooth as China's past growth.

What has been a significant challenge for Apple due to changes in the global economy?

• Increased competition from local brands

• Rising wages in China and falling incomes in Europe and the U.S.

• Decreasing demand for smartphones globally

• Lack of innovation in new products

Why is Apple focusing on its services business?

• To expand its retail stores globally

• To increase its manufacturing capabilities

• To compete directly with Amazon

• To reduce dependency on hardware sales

Which of the following is NOT part of Apple's growing services business?

• Apple Pay

• iPhone sales

• App Store sales

• Apple Music subscriptions

What is a potential market for Apple as the Chinese economy slows down?

• Brazil

• India

• Russia

• South Africa

What challenge does Apple face in the Indian market compared to China?

• Stricter government regulations

• Lack of consumer interest in technology

• Slower growth compared to China's past growth

• Higher import taxes