Friday 26 October 2012

The explode of apple products in the market

Main article : http://www.afterdawn.com/news/article.cfm/2009/09/09/ipod_market_share_at_73_8_percent_225_million_ipods_sold_more_games_for_touch_than_psp_nds_apple

 
Nowadays, the brands of apple products become famous and famous concomitant with the development of technology. Apple products are totally success in creating various types of goods, such as IPod Touch, IPhone, I-pad and Mac book. In these times, it could be said that the highest selling rate of branded electronic products are Apple. Besides, apple products are not as familiar as now. In the beginning, apple products only have few types of goods that began with the IPhone and followed by the revolutionary of apple, such as IPod. In the middle of the development apple products, the company is also facing increased competition from Android in general and Samsung in particular. This condition is totally encourages the company to be plotting a major feature overhaul for the next products. It truly brings the apple products into a greatly success. This also prompts the increase in demand of apple products in global market, especially for IPod Touch and IPhone. Both of IPod Touch and IPod referred the elasticity, substitution goods and superior goods.
The percentages of IPod Touch and IPhone market share reach a peak to 73,8 percent. After that, the number of selling IPod in market attains to 225 million. It clearly seems that the demand of IPod Touch and IPhone products increase significantly. Most of people use IPod Touch and IPhone, because when people use Apple product, they have already had the good perspective about the quality of product. They choice a product which is the best according their perception.
In addition, Apple products provide the newest main feature such as safari, passbook, safari, accessibility, face time, maps, and etc. Then the trendy application such as, e-books, e-tunes, key-notes, I-movies, I -photo are provided in apple products. Both of main features and application provide the confines and luxuries gadget for people. Today, mostly people love portable gadget such as IPod Touch and IPod, because both of them are handy goods. Beside of that, the design of apple exudes elegance in every product. Generally without realizing, people make rational choices by comparing benefits and costs in consuming one goods. In this cases, there are also have the opportunity cost between the buyers and sellers. That is the particular reason why the demand of Apple products, especially IPod Touch and IPhone increase rapidly in the market.
In the other hand, the supply of Apple products, especially IPod Touch and IPhone are increasing faster above the expectation, because it delivers an opportunity cost for seller. When the demand of IPod reaches a peak, seller has powered to dominate the market. It brings seller as a price maker. This situation is evidenced by the revolutionary of apple products which continuously release a new various type of apple products.  The effortless of apple companies in increase the quality of their products clearly seem by the evolutionary standard of apple products. Apple companies have combined the various types of apple products with the newest application which is followed by the other products. When the companies succeed in promoting IPod Touch and IPhone to the most of people, the level of demand will go up that cause the increasing of prices. Automatically, the quantity supplied of IPod Touch and IPhone will be rising. The success of  apple products in supplying IPod Touch and IPhone also based on the marketing strategic which is used by company to influence their products.  Moreover, the increase in supply of IPod and IPhone exactly drop off the prices.
Another case, an increase in demand of both of electronic gadget raises the price and an increase in supply lowers the price. As the articles mentioned that the rate of IPhone selling reaches a peak to 30.000.000 assuming the higher rate of benefit and advantages of this product rather than the other electronic product. The increase in sales rate is encouraged by the increase in demand of people in consuming the IPhone Touch and IPhone. It offers an advantage for sellers in apple companies. The first of advantage which is obtained by company is the rising of their income. So the rising of price in both of products are totally uncontrolled. This condition also strengthened with the competitive market between apple’s company and the other company. In confronting with this problem, seller must control the price by establishing a fix price or administer price.
In this case, the increase in demand of IPod and IPhone will create a shortage. In overcome this issue, the price of IPod and IPhone must be decreased. Besides, when the supply of both gadget increases, it will cause the falling of price and the quantity increases. The increasing of demand and supply will not always affect the advantages in the market.
To clear up the explanation, we can see in the graph of increase in both demand and supply:
The graph shows the original demand and supply at the sales rate of IPhone Touch and IPod The original equilibrium price is around $ 15.000.000 and the equilibrium quantity is 30 million of total sales rate. As we can see, when demand increases, the demand curve shifts rightward. The equilibrium price rises to $ 30.000.000 amount of total sales rate. There is an increasing of quantity supplied, but no change in supply. Next, when IPhone and IPod produce to a new luxury technology, the supply of sales rate increases. Otherwise, the price falls to around $ 10.000.000, but the increasing of quantity reaches into 10. Then, as we can see there is a surplus in the middle of equilibrium. When the supply increases, the supply curve shifts rightward. The equilibrium price falls around to $ 10.000.000 a sales and the quantity demanded increases to 16,5 million. There is a rising of quantity demand, but no change in demand. Beside of that, there is a surplus of around 10 million total sales rate at $ 20.000.000 a total sales rate. In this situation, the apple companies can’t force consumer to buy more than their expectation. Furthermore, this condition is such a power of company to lower the price and move it toward equilibrium price. Company has no choices, so they cut the price until the price falls toward its equilibrium. It could be affected into the declining of surplus, because it increases the quantity demanded and decreases the quantity supplied.
In the conclusion, to solve this issue, I thought government should make a regulation regarding the payment of tax in each producing or consuming apple products. The ultimate effect would be reduce the supply of IPod Touch and raise the price to consumer, ideally making the price equal to the full cost of production society.



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