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Apple Has Not Made Enough Iphone 7's Analysis

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Commentary on Apple Has Not Made Enough iPhone 7’s Technology is the fastest growing development that the 21st century has seen thus far. It was only 40 year ago that cellular telephones were invented and now,a phone can have the same processing speed as a computer. As the population increases and the price of telecommunication decreases, the demand of phones rise which causes companies to continue producing more units every year. Though as time goes on, companies experience successes and failures responding to supply and demand which end up influencing production of the following products. Alex Webb and Mark Gurman’s article Apple Has Not Made Enough iPhone 7’s, discusses the relationship between supply and demand when a shortage occurs. …show more content…

Generally, when companies see that the consumption data of their latest product showed a greater supply compared to demand, they decrease the supply they will produce for the next product. This is to avoid a surplus: where the supply is higher than the demand. Apple used the same solution after the iPhone 6s surplus when producing the iPhone 7. As previously mentioned, the new jet black color introduced this year and was sold out in pre orders (Gurman, Webb). This shows the change in demand due to a change in customer taste. Color is large aspect of a consumer decision to purchase an cellular device therefore, when Apple came out with the new jet black color, it influenced the consumers to buy that version. Referring back to the graph, a decrease in demand was caused because of a shift of consumer preferences.. From the iPhone 6 to 6s, Apple had added a 3D touch, which they thought many would be intrigued by. Though on the contrary, just led to a reduction in units sold. In all, this shows the importance of customer preferences because once the company keeps the customer satisfied, the customer stays loyal to the company. Therefore customer preference, is also a key point of differentiation that helps you to attract new customers in competitive business environments. Lastly, an implication of increase in demand is explained through the economic concept of equilibrium price. The market price of the iPhone 7 was elevated by virtue of the large development of demand. The theory generally states that the equilibrium point, the market price, is set at the point of intersection between the supply and demand line. Therefore implying that as the demand rose, so did the market price for the iPhone 7. To put in perspective, the iPhone 16gb is the same price as the iPhone 6s 128gb being

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