Principles of Principles of MacroeconomicsMacroeconomics

Spring 2011Spring 2011Day 19Day 19

Dr. Andrew L. H. ParkesDr. Andrew L. H. Parkes““A Macroeconomic Understanding for use in A Macroeconomic Understanding for use in

Business”Business”

卜安吉卜安吉

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International Capital FlowsInternational Capital Flows

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Last year from Feb. 2010 to Jan 2011

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Last year from June 2010 to May 2011

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Apple is #1 – or Steven?Apple is #1 – or Steven?

When pressed on whether the When pressed on whether the absence of Flash was bad for absence of Flash was bad for consumers, he answered that consumers, he answered that consumers appeared to have spoken consumers appeared to have spoken with their wallets. “If the market tells with their wallets. “If the market tells us we are making the wrong choices, us we are making the wrong choices, we listen to the market.” Mr. Jobs we listen to the market.” Mr. Jobs said said

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Apple is #1Apple is #1

Mr. Jobs said Apple has made a Mr. Jobs said Apple has made a technological bet that Flash is not technological bet that Flash is not necessary, and that customers, in necessary, and that customers, in essence, pay Apple to make such essence, pay Apple to make such choices and deliver good products. choices and deliver good products.

– New York Times, New York Times, June 2, 2010, 12:04 am, June 2, 2010, 12:04 am, http://bits.blogs.nytimes.com/2010/06/02/steve-jobs-muses-on-all-things-apple/?th&emc=http://bits.blogs.nytimes.com/2010/06/02/steve-jobs-muses-on-all-things-apple/?th&emc=thth

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Apple is #1Apple is #1 ““If we succeed, they’ll If we succeed, they’ll

buy them, and if we buy them, and if we don’t, they won’t,” he don’t, they won’t,” he said. “People seem to be said. “People seem to be liking the iPad. We sold liking the iPad. We sold one every 3 seconds one every 3 seconds since we launched since we launched them.” them.” June 2010June 2010

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Money Money

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Steve Jobs is #1Steve Jobs is #1

Mr. Jobs also predicted that Mr. Jobs also predicted that the ongoing shift in the ongoing shift in technology away from the PC technology away from the PC and toward mobile devices and toward mobile devices will continue.will continue.

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Apple is #1Apple is #1

The only American company valued The only American company valued higher is higher is Exxon MobilExxon Mobil, with a market , with a market capitalization of $282 billion.capitalization of $282 billion. As of As of June 2010!June 2010!

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Apple is #1Apple is #1 This changing of the guard caps one This changing of the guard caps one

of the of the most stunning turnarounds in most stunning turnarounds in business historybusiness history, as Apple had been , as Apple had been given up for dead only a decade given up for dead only a decade earlier. But the rapidly rising value earlier. But the rapidly rising value attached to Apple by investors also attached to Apple by investors also heralds a cultural shift: heralds a cultural shift: Consumer Consumer tastes have overtaken the needs of tastes have overtaken the needs of business as the leading force shaping business as the leading force shaping technology.technology.

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Apple is #1Apple is #1 Microsoft, with its Windows and Microsoft, with its Windows and

Office software franchises, has Office software franchises, has dominated the relationship most dominated the relationship most people had with their computers for people had with their computers for almost two decades and that was almost two decades and that was reflected in its stock market reflected in its stock market capitalization. But capitalization. But the click-clack of the click-clack of the keyboard has ceded ground to the keyboard has ceded ground to the swoosh of a finger across a the swoosh of a finger across a smartphone’s touch-screen.smartphone’s touch-screen.