Iphone Demand and Supply Research Paper Example | Topics and Well Written Essays - 750 words

I scream Demand and Supply - Research Paper drillThe entire process includes a transaction and involves the exchange of goods and services for money. This paper helps to discuss and provide an insight into how demand and leave has changed the world in the present modern era with the help of electronics, in specific, the iPhone. This call off has become a phenomenon in the world today, however a news article talks around how the demand outstrips the supply in chinaware for this particular commodity and how that has affected the people at a micro economical level in the country. China Unicom Ltd. Said that it was not being able to congruous the demand for iPhones in China with an equal level of supply because of the excess in quantity that has been demanded by the people there. The iPhone is no longer a good that falls under the category of luxury goods because this in truth fact that its demand is growing day by day, shows that the people are easily able to abide the same and want to purchase it at the price that it has launched at. According to the company, an estimated 200,000 iPhones were pre ordered the very day that the phone went on sale in the country (from the USA) and another 400,000 were sold on that day. The company was able to pull back so many buyers because of the popularity that the phone had gained over the Chinese merchandise because of the sale of its previous model, which had further demented a wider consumer base. Even though the phones are more expensive, they offer better features as well as data services which have attracted such a wide consumer base. In economic terms, it is clear and spare that this particular phone has appealed a great deal to at least half of the Chinese market because more and more people have bought it at the price at which it was launched. The iPad was also released in China and went on sale at a fast pace as well. However, the crux of the matter remained that the iPhones demand exceeded the supply that the company was able to give to the people. This goes to show that there was an university extension of demand in the particular commodity at the same or even higher price. Since the iPhone 4 was costlier than the previous version, an extension (and not just an increase) in demand can be noticed here in economic terms which means that there is movement along the demand curve where the sale and purchase of iPhones in China are concerned. As per the article, As of the second quarter, Apple was the fifth-largest smart phone vendor in China with 7.1% of shipments, according to Beijing research firm Analysys International.NokiaCorp. had the largest share with 26.7%. this very statement helps in catch the kind of consumer base that Apple has created for itself in China and that even in deep cut pharynx competition, the company has been able to sustain its position in the Chinese market, which can be seen when the demand for the phones exceeded the supply level. In a nutshell, the conc epts of supply and demandcan be viewed with the help of understanding the