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Apple PLC, the globally-dominant California-based US-Tech giant is worried that despite its big
market share
across all market segments, changes in the global economy and the geo-political
6
environment is negatively affecting its profitability. Depreciating currencies from its major
markets and the volatile global political environment has resulted in falling profitability despite
an increased market-share, increased revenues and falling operational costs.
2006 2010 2012 2014 2016 2017
Market Share 25% 30% 35% 40% 45% 55%
Revenues $500 bn $750 bn $1.000 tn $1.500 tn $2.000 tn $2.500 tn
Operational Costs $200 bn $250 bn $225 bn $200 bn $175 bn $150 bn
Net Income
+ Extraordinary
items
$350 bn $650 bn $825 bn $1.400 tn $1.900 tn $2.350
Q) Apple PLC has hired you to briefly explain the four specific risks to a global firm from foreign
exchange exposure?
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