Supply and demand and cell phones

The face of my cell phone has been cracked for about a year and a half now. Instead, Waltzing Matilda is my standard of choice.

Supply and demand and cell phones

Supply and Demand iPhone: On its first day of pre-ordering, Apple managed to get over 2 million purchase, which is 1.

Smartphones to remain the biggest sales driver in consumer electronics

Meanwhile, 4 million iPhone 4S was sold in the first three days after its launching. These figures clearly show that there is a robust demand for iPhone.

Unpleasantly, the opening-weekend sale of iPhone 5 has tarnished the image of Apple. It is not due to the lack of upgraded features of iPhone 5 - it is because of its supply and demand. Apple was deprecated by analysts who downgraded Apple because of the shortage of iPhone supply.

The analysts expected that more than 10 million iPhone 5 would be sold. However, it only reached 5 million units of sales. Apple also insisted that the demand for iPhone 5 was actually exceeded its supply, otherwise Apple could have generated more sales volume.

Demand and supply for iPhone 5 during its launching Based on Graph 1, the quantity demanded for iPhone 5 exceeds the quantity supplied by Apple; therefore there is a shortage of supply.

Supply and Demand (in that order): Price Discrimination -- An Example from the Cell Phone Industry

Apple could actually make more sales because the quantity demanded is expected to be 10 million units. If Apple managed to supply 10 million units of iPhone 5 to meet the future demand from consumers, Apple can maximize its profit at the equilibrium point where efficiency takes place; neither overproduction nor underproduction.


Not more than a month after iPhone 5 was launched, Apple confronted with another issue relating its outsourced assembly operation in China. Foxconn is an electronic firm that outsources work for Apple and manufactured the iPhone 5 for Apple.

It is reported that thousands of the factory workers involved in a dispute over the strict quality control and being forced to work on a holiday. They went on strike because the new quality demands imposed on iPhone was difficult to be met and they were under pressure.

As to this matter, Foxconn claimed that this strike has not led to halted production of iPhone 5 and has nothing to do with the recent shortage of supply of iPhone 5.

Supply and demand and cell phones

Whatever controversy points to Apple, would it affect Apple tremendously? In my opinion, the issue on the workers strike is not a big matter to Apple because iPhone has become a leading smartphone in the market, especially in the U.

Why do many people choose iPhone over other smartphones? The main attributions to this are the product quality, price and brand. While many Android phones emerge into the market, still many phone users believe that iOS applications be the best.

It is a worth buying phone because of its high quality.

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Because of this, Apple can charge a higher price for its iPhone and thus makes greater profit margin. People buy iPhone as a status symbol. All these area have differentiated iPhone from its close substitute, but not a perfect substitute. So, when its price increase, the quantity demanded for iPhone decreases but it does not necessarily decrease to zero unless the price rises by a large enough amounts.

When consumers switch to its substitutes, the demand curve for iPhone will shift to the left, but not very significant i.

Supply and demand in the cell phone, Business Economics

Based on Graph 2, as consumers turn to alternative smartphones, the demand curve D1 shift to D2. Substitution effect As iPhone has the product differentiation over its rivals who run on Android systems for their smartphones, Apple can generate high sales.

Since iPhone is in monopolistic competition, iPhone makes a short-run output and price decision just like a monopoly firm does. Refer to Graph 3 Graph 4: Zero economic profit However, iPhone is not going to gain economic profit for long.Supply and demand are market forces that determine the price of a product.

An example is when customers are willing to buy 20 pounds of strawberries for $2 but can buy 30 pounds if the price falls to $1, or when a company offers 5, units of cell phones for .

Nottingham University Business School Undergraduate Programmes Business Economics A (N UK) (AUT ) “The number of owners of mobile phones has grown rapidly and hence the demand for mobile phones has also grown rapidly.

Economics Demand and Supply For IPhone Introduction. Apple Inc. was rated as the most admired company in the world from by Forbes magazine for its smart phone, “The iPhone”.

Analysis of the demand and supply of IPhones smart phones in relation to change in market factors. * Another company starts producing cell phones, and now there are 3 producers in the market. * People think the price of cell phones will go up in the future.

May 31,  · Price Discrimination -- An Example from the Cell Phone Industry The major cell phone carriers charge iphone users approx $90 per month for cellular and data services on an iphone.

At least one pre-paid carrier offers cellular and data services for iphone owners at $45 per month ($50 with taxes, or about $42 with taxes if prepaying one year).Author: Casey B.

Supply and demand and cell phones

Mulligan. Supply Risk, Scarcity, and Cellphones and so its supply is entirely dependent on the demand for those other metals.

cell phones minerals the data. Comments.

Guns, Money and Cell Phones — Global Issues