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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