Economics of Apple, Inc.`s iPhone

Apple Computers, Inc. (Apple) was founded by three individuals – Steve Jobs (Jobs), Steve Wozniak (Wozniak), and Ronald Wayne – in 1976. The word “Computers” was dropped from the company’s name in 2007 (Refer to Exhibit I for Apple’s financial performance from 2011 to 2017). In 1976, the company came out with its first computer called Apple I. It subsequently debuted Apple II in 1977. Apple II revolutionized the computer industry with color graphics being unveiled for the first time. Apple went public in 1980. The company’s Macintosh computer, which was introduced in 1984, created a sensation. The model introduced the graphical user interface phenomenon, which did away with the need for users to enter commands. The user action only involved selecting from on-screen icons...