PPB 3050 GROUP E: BUSINESS MATHEMATICS 

  

GROUP 8: 

Bil  NAME  MATRIX NUMBER 

1.  NURUL HAZLINA BINTI ZAIYUNAN  D20201092694 

2.  NURUL AMANI FITRY BINTI ZAKARIA  D20201092695 

3.  NURULAIN NABILAH BINTI OTHMAN  D20201092696 

  

  

LECTURER NAME: DR. WAN SALMUNI BINTI WAN MUSTAFFA 

  

 
1.0 TITLE 

Solving  the  problem  of  iPhone  net  sales  that  decreased  during  2019  compared  to  2018  due 
primarily to lower iPhone unit sales using Equation and Equalities. 

2.0 INTRODUCTION 

Apple  is  a  company  that  makes,  creates  and  markets smartphones, individual computers, 

portable  workstations,  wearables  and  extras  and  offers  a  number  of  related  administrations. The 
fiscal  year  of  the  company  is  the  52-week  or  53-week  period  ending  on  the  last  Saturday  of 
September.  The  Business  is  an  organization  founded  in  1977  in  California.  The  products  from 
Apple are iPhone, Mac, iPad, Wearable, Homes and accessories. 

Apple  also  offered  their  services  which  are  AppleCare,  iCloud,  Licensing,  Digital 
Content  Stores  and  Streaming  Services  and  other  services.  The  reason  why  Apple  was  named 
Apple  is  because  Steve  Jobs  got  the  idea  after  he  returned  from  apple  farm  and  he  thought  that 
Apple  sounded  fun,  spirited  and  not  intimidating.  Apple  also  started  with  A  which  meant  it 
would be nearer the front of any listing just like A the first letter. 

The  Apple  logo  was  inspired  by  Newton  when  an  Apple  fell  from  a  tree  hitting  him  on 
the  head.  So  that's  where  Apple  got  its  logo.  Rob  Janoff,  the  one  who  created  the  logo  said that 
the  Turning  connection  is  simply  “a  wonderful  urban  legend”  and  the  bite  taken  out  from  the 
Apple  represents  the  story  of  Adam  and  Eve.  The  Business  is  a  firm  founded  in  1977  in 
California.  Apple  Computers,  Inc.  was  founded  by  high  school  drop  Steve  Jobs  and  Steve 
Wozniak  on  April  1,  1976,  who  used  to  have  a  vision  of  changing  the  way  people  perceived 
computers into some kind of startup company. 

Jobs  and  Wozniak  have  aimed  to  make  computers  compact  enough  to  be  in  their  homes 
and  workplaces  for  clients  to  use  them.  Clearly  speaking,  they  required  a  convenient  computer. 

   

2 
Wozniak  and  Jobs  started  planning  the  Apple  I  within  the  Jobs  carport  and  sold  it  without  a 
screen,  console  or  casing  (which  they  chose  to  include  in  1977).  Apple  II  revolutionized  the 
computing  industry  with  the  launch  of  the  first-ever  colour  graphics.  1  Sales  soared  from  $7.8 
million in 1978 to $117 million in 1980, the year Apple became public. 

Wozniak  cleared  out  Apple  in  1983  due  to  a  lessening  interest  within  the  day-to-day 
running  of  Apple  Computers.  Occupations  at  that  point  contracted  PepsiCo's  John  Sculley  to be 
president.  Be  that  as  it  may,  this  move  reversed  discharges  and  after  much  discussion  with 
Sculley,  Employments  cleared  out  in  1985  and  went  on  to  modern  and  greater  things.  He 
established  his  own  company  Following  Program  and  he  moreover  bought  Pixar  from  George 
Lucas,  which  would  afterward  gotten  to  be  a  colossal  victory  in  computer  activity  such  as 
Monster, Inc, Toy Story and A Bug's Life. 

Apple  was  doing  their  best  in  1990  and  achieved their highest profits yet. However, Jobs 

has  readily  set  in motion for his plans before he left. Particularly his deal with a tiny company by 
the  name  of  Adobe,  creator  of  the Adobe Portable Document Format (PDF). The two companies 
Apple  and Adobe created the phenomenon known as desktop publishing. Bill Gates, a founder of 
Microsoft, was turned down by Sculley in 1985 to license its software. 

From  that  decision,  Sculley  was  haunted  because  of  Microsoft  which  was  Windows 
operating  system  (OS)  who  featured  a  graphical  interface  which  was  similar  to  Apple’s,  it  was 
their biggest competition in the 1980s and 1990s. After years, following its peak in 1990, Apple's 
market  share  suffered  steadily,  and  by  1996,  analysts  claimed  the  company  was  doomed.  It was 
not  until  1997,  when  Apple  was  badly  in  search  of  an  operating  system,  that  NeXT  Software 
(Jobs'  company)  was  acquired  and  the  board  of  directors agreed to ask an old friend, Steve Jobs, 
for some help. 

After  that  incident  Jobs  became  an  interim  CEO  (iCEO)  which  he  was  not  an  official 
CEO  of  Apple  until  2000.  When  Jobs  entered  Apple,  he  wanted  to  make  changes  in  Apple.  He 

   

3 
also suggested making an alliance with Microsoft so that Apple can manufacture Mac versions of 
its popular office software. After that incident, the decision was a turning point for Apple. 

  

Jobs  redone  the  computers  and  presented  the  iBook  (an  individual  tablet).  He  moreover 
began branching out into mp3 players (iPod) and media player computer programs (iTunes). This 
was  Jobs'  best  move.  Whereas  computers  are  still  a  critical  portion  of  Apple,  its  music  related 
items  like  iPod  and  iTunes  have ended up the company's most beneficial segment. The iPhone, a 
savvy  phone,  and  Apple  TV  have  too  as  of  late  been  distributed  by  Apple.  Even  Though, Steve 
Jobs died on October 5, 2011, his legacy will still be continued by Apple. 

   

4 
3.0 PROBLEM STATEMENT 

Net  revenues  consist  of  sales  revenue  from  iPhone,  Mac,  iPad,  Utilities  and  other 
products.  The  Organization  shall  accept  the  income  of  the  value  of  which  it hopes to be entitled 
as  the  ownership of the goods or services is passed to its clients. Power is usually passed because 
the  Business  has  the  right  of  payment  and  title  and  the  major costs and benefits of possession of 
the  goods  or  services  are  transferred  to  the  clients.  Control  switches  as goods are delivered with 
much  of  the  Company's  Net  Profit  Products.  For  the  Company's  Net  Sales  Services,  power 
transfers  over  time  as  services  are provided. Payment for net sales of goods and services shall be 
received  within  a  short  period  of  time  after  the  transfer  of  ownership  or  the  beginning  of  the 
supply of services, if appropriate. 

The  Organization  tracks  declines  in  net  revenue  due  to  future  stock  refunds,  price 
protection  and  other  consumer  benefit  schemes  focused  on  perceptions  and  past  history  of  the 
Company.  For  contracts  of  several  performance  obligations  that  reflect  commitments  within  an 
agreement  that  are  capable  of  being  distinct,  the  Company  shall  assign  profits  to  all  different 
performance  obligations  on  the  basis  of  their  respective  stand-alone sale prices ("SSPs"). Where 
available,  the  Company  shall  use  measurable prices to assess SSPs.Where measurable values are 
not  available,  SSPs  are  developed  that  represent  the  Company's  best  expectations  of  what  the 
sale  prices of the performance commitments would be if they were sold on a stand-alone basis on 
a daily basis. 

The  Company's  method  of  calculating  SSPs  without  measurable  rates  considers  several 
variables  which  may  differ  based  on  the  particular  facts  and  circumstances  of each performance 
obligation,  including,  where  appropriate,  prices  paid  by  the  Firm  for  similar  products,  industry 
dynamics  for  similar offerings, product-specific business goals and projected costs to provide the 
performance  obligation.The  Organization  has  established  up  to  three  performance  obligations 
that are routinely included in the selling of iPhone, Mac, iPad and some other items. 

   

5 
 The  first  output  responsibility,  which  constitutes  a  large  portion  of  the  given  purchase 
price,  is  the  hardware  and  packaged  applications  provided  at  the  time  of  delivery.  The  second 
duty to fulfill is the right to receive such product-related packaged utilities, including iCloud, Siri 
and  Maps.  The  third  requirement  to  fulfill  is  the  right  to  receive  potential  unspecific 
technological  updates  relevant  to  the  software  packaged  for  each  computer  on  a 
time-and-if-available basis. 

The  Organization  shall  assign  profits  and  any  associated  discounts  to  these  output 
commitments  on  the  basis  of  their  relative  SSPs.  As  the  Company  lacks  measurable  rates  for 
unfulfilled  output  commitments,  the  income  distribution  is  focused  on  the  Company's  projected 
SSPs.  Revenue  assigned  to  the  provided  hardware  and  packaged  applications  is  acknowledged 
after  the  power  has  been  passed  to  the consumer, which usually happens when the commodity is 
delivered.  Revenue  committed  to  product-related  bundled  services  and  unspecified  device 
upgrade  rights  is  deferred  and  accepted  on  a  straight-line  basis  over  the  projected  timeline 
expected  to  be  provided.  Sales  costs attributable to shipped hardware and packaged applications, 
including projected repair costs, are recognised at the time of delivery. 

Costs  paid  for  the  purchase  of  product-related  packaged  services  and  unspecified  device 
update  privileges  shall  be  regarded  as  the  cost  of  sales  incurred.  The  Business  has  performance 
commitments  for  such  long-term  service  contracts  for  services  that  it  has  not  yet  provided.  In 
respect  to  these  agreements,  the  Company  does  not  have  the  right  to  charge  for  the  services 
provided.  The  Company  has  agreed  that  the  services  rendered  are  not  legitimate.  The  Company 
also  agreed  that  all  unbilled  consideration  applies  solely  to the expense of the services provided. 
Accordingly,  the  Company  has  not  acknowledged  any  income  and  has decided not to report any 
sums related to the services rendered. 

For the selling of third-party goods, where the Company obtains ownership of the product 
before  passing  it  to  the  consumer,  the  Company  shall  accept  income  on  the  basis  of  the  total 
value  paid to the customer. The Organization evaluates several considerations when deciding if it 

   

6 
obtains  ownership  of  third-party  goods,  including,  but  not  limited  to,  the  determination  of 
whether it can decide the price of the product; 

For  third-party  apps  distributed  via  the  App  Store, the Mac App Store, the TV App Store 

and  the  Watch  App  Store  and  some  consumer  products  sold  through  other  digital  content stores 
of  the  Company,  the  Company  can  not  gain  ownership  of the software until transferring it to the 
user. Accordingly, the Organization pays for those revenue on a net basis by considering only the 
Commission it retails on Net Sales Facilities. 

The  Corporation  has  opted  to  report net income from taxes received from consumers that 

are  remitted  to  government  officials,  with  the  taxes  collected  reported  in  other current liabilities 
until  they  have  been  remitted  to  the  applicable  government  authority.  Thus,  our  problem 
statement  is  iPhone  net  sales  decreased  during  2019  compared  to  2018  due  primarily  to  lower 
iPhone unit sales that caused decreased towards revenue.  

   

7 
4.0 APPLICATION

Apple Inc.’s revenue during 2019 has decreased because of iPhone net sales decreased during
2019 compared to 2018 from 265,595 to 260,174 due primarily to lower iPhone unit sales. Apple
Inc. sold iPhones starting at 1099$ for iPhone 11 pro max since it was released in 2019. Thus,
how many units of iPhone 11 pro max must Apple sell so that the revenue will become 270,000$
and Apple won’t have to deal with the decreasing of revenue during 2019.

Price per unit of iPhone is: 1099$

Manufacturing cost: 490.50$

Fixed cost: 89718$

Let x – be the number of iPhones that Apple has to sell.

Cost Price = fixed cost + variable cost x (number of units)

Selling Price = Number of units x price per unit

Also:

Selling Price = Cost Price + Profit ……….1

Cost Price = 89718 + 490.50x

Selling Price = 1099x using all these in…1

Profit = 270,000

   

8 
1099x = 89718 + 490.50x + 270000

1099x – 490.50x = 89718+ 270000

608.5x = 359718

X = 591.155

X ​≈ 592

Thus, Apple has to sell 592 units to earn 270,000$ profit.

   

9 
5.0 IMPLICATION 

Apple Inc. is using application of equations and inequalities to solve their problem which
is Apple Inc.’s revenue during 2019 has decreased because of iPhone net sales decreased during
2019 compared to 2018 due primarily to lower iPhone unit sales. The equation and inequalities
can be defined as mathematical sentences formed by relating two expressions to each other. In an
equation the two expressions are deemed equal which is shown by the symbol =.

There are some advantages of using. Firstly, equations and inequalities are faster and
better than basic math. For example, Apple companies need to solve their problem of iPhone net
sales decreasing during 2019 compared to 2018 due primarily to lower iPhone unit sales. Next,
the advantage of using equations and inequalities is it can be useful for the business because it
also helps in financial decisions.

However, the important thing is getting strategic planning to improve the business such
as Apple making a decision on how to gain profit by selling their product or they need to do
something new that will get high response from customers. So, the right proposal will be taken
with good action to ensure the business is more advanced in the future.

Lastly, algebra helps to get the best deals. It helps to understand better how to manage a
big and important financial situation for the company. The fact is without algebra it might be
difficult to understand how to know the right interest rate because they have their own investors
since it is important and quite a big role in a business. For use. Apple is one of the biggest
companies which many of the investors like to join.

   

10 
6.0 CONCLUSION 

In  conclusion,  Apple  Inc.  can  solve  the  problem  personally  effectively  by  applying 
equations and inequalities in the calculation. Based on the annual report, Apple has to sell 592
units iPhone 11 pro max to earn 270,000$ profit.

Apple must be concerned about why the iPhone sales dropped in 2019 because of some
reasons like iPhones prices are too expensive and the price is not reasonable with what the phone
provided that makes people stop buying iPhones.

Not only that, the battery health of the iPhone dropped easily too. People need to change
the battery of their iPhone once in a year to make sure that their iPhones can work perfectly and
the battery doesn’t drain fast. This makes consumers change from iPhone to android because no
one ever wanted to charge their phone 4 times a day to make sure they can use their phone and
doesn’t thave to bring the powerbank.

Next, consumers are always waiting for Apple Inc. to produce a better phone with better
performance and battery life. People kept on postponing their desire to buy the new iPhone
because they wanted something that was worth their money like new features on the iPhone
which has been on Android for a long time ago.

Some consumers also thought that the iPhone is quite hard to use because the IOS
interfaces are harder to use rather than Android. Especially among older people they tend to want
something that is easier for them to use because the IOS interface requires a lot of effort to use.

The biggest factor that iPhone users hate is iPhone cosmetics issues. People bought
iPhones with high prices but they turned out to get a product that has scratches on the camera and
the body of an iPhones. This happened to a lot of people. People don’t want to spend a lot of
their money on something that is not even worth their money and this problem doesn’t cover
with the warranty.

   

11 
 Apple Inc. really needs to look forward to these problems because these factors are
bringing the decrease towards iPhone sales which lead to the decreasing of revenues. Apple has
to find a way on how to solve these factors because it leads to why people don’t want to buy an
iPhone.

   

12 
 7.0 REFERENCES 

Ann  Brashares,  "Steve  Jobs  Thinks  Different."  Brookfield,  CT:  Twenty-First  Century  Books, 
2001. pp. 15-16. 

Rawlinson,  N.  (2017,  April  25).  Apple  was  41  years  old  in April, here's some history. Retrieved 
December  27,  2020,  from 
https://www.macworld.co.uk/feature/history-of-apple-steve-jobs-mac-3606104/ 

Brown,  R.  (2020,  August  29).  The  Cost  of  Making  an  iPhone.  Retrieved  December  28,  2020, 
from ​https://www.investopedia.com/financial-edge/0912/the-cost-of-making-an-iphone.aspx 

Apple  Inc.  (n.d.).  Retrieved  December  27,  2020,  from 

https://www.annualreports.com/Company/apple-inc 

Apple. (n.d.). Retrieved December 27, 2020, from ​https://www.apple.com/ 

Rawlinson,  N.  (2017,  April  25).  Apple  was  41  years  old  in April, here's some history. Retrieved 
December  27,  2020,  from 
https://www.macworld.co.uk/feature/history-of-apple-steve-jobs-mac-3606104/ 

Snowden,  W.,  &  Editor,  H.  (2019,  October  17).  Here's  How  Much  It  Costs  Apple  to  Make  an 
iPhone  Pro  Max.  Retrieved  December  28,  2020,  from 
https://www.highsnobiety.com/p/how-much-apple-iphone-cost-to-make/ 

   

13