March 13, 2012

Cost of Apple Company is more than Poland?

Last week one sentence was so famous that total cost of Apple company is more than Poland.Total cost of Apple is more than $500 billion and this amount is more than the Poland country National Income.  Is it really possible that the cost of a technology company is more than a country?




This sentence was used by American TV channel CNN and then it spread in all over the world media.At  its looks like joke but when we see the figure then it is clear that Apple cost is more than Poland.Apple total cost is $506 billion and the Poland total production is $470 billion.So according to this figure Apple is world 20th economy like a country.This is not true and the comparison of a company and a country is not possible it is same like that Apple and orange.London School of Economics professor said that it is possible to compare a company with a country but in right way.He said that we have to calculate the future income of Poland and the interest on this income should also be calculated.He said that in this method income of Poland will increase five time and it will be $2.5 trillion which is more than Apple.

There is also another way to compare Apple and Poland. He said Apple added value should be calculate and then compare the Poland national income.According to Finance Times Value added mean, price increased in result of improvement made in that commodity.According to professor we have to calculate the all sales of Apple and then deduct the amount of those products which Apple did not manufacture. This will be the real value or cost of Apple in front of Poland National Income. After this calculation Apple number will be decreased from 20th world economy to 56th world economy which is equal to Vietnam and Bangladesh.

He said this is  fact that Apple is a big company but is this company power is same like a country ofcourse not.

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