Too many demand not enough supply

Annual sales for Apple iPhone has increased tremendously since the release of the first official iPhone.

This is due to the popularity iPhones receive fro various people and the new changes that apple make to each new phone that is produced. Since the demand for iPhones were extremely high, apple has increased the price for iPhones over the years that got, so high that the demand for the phone decreased, and customers would start to look else were for a phone. Since apple experience they drop of sales it was not expected that the demand for the new edition of the iPhone would be so big, so now apple is facing a shortage due to a high demand of their product and enough supply.

The price for the new iPhone 7 range from $649-$749 due to the difficulties of the new features apple has added to the product. Given this, apple was not expecting to have suck a high demand for this product. Phone companies has requested more of the product given that the demand for the new model was four times as high for the demand of the old models.

2 Comments »

  1. meederh Said,

    November 19, 2016 @ 2:00 am

    This is interesting. Do you think Apple usually has a shortage in phones? So they raised the price because of this? Interesting

  2. wenx Said,

    December 1, 2016 @ 4:50 am

    I want to relate the high demand to the relatively high opportunity cost of the iPhone holders. Apple have a great system of transferring the information from one iPhone to another. If an iPhone holder change their phone to Samsung, the opportunity cost of transferring all the contact and all the photos would be very high. The time wasted would not be worth the money that a samsung phone would save. Therefore the opportunity cost can be related to the high demand of iPhones.

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