Change in the price of a commodity has an immense effect on both the products that are being sold and the company that is manufacturing them. An increase in the price can lead to customers choosing to shy away from the product, or get to attract a certain class of customers who would be interested in a product that they were not interested in before. Moreover, a decrease in the price of the product could have the same effect on the consumers. Some would be attracted to the product because of the new price, viewing it as something that they can finally afford. For others, they would detach themselves from the merchandise, considering it as cheap and no longer meant for people of their social class. It is for these reasons that it is important that a company goes through the effects that a change in the prices of the commodities would have. Should all be well, then the management could go ahead and alter the prices of the commodities (Byrne et al. 18). Apple Inc. is a company that has been successful in the recent past. It easily qualifies as the most successful technology company so far. It has a rich history and a rich heritage which people have come to take pride in, especially the people of America. At some point, it was the most profitable company given its ambition and the different initiatives that it …show more content…
It is a significant increase by any standard, and especially looking at the current cost of the Apple products in the market, a 10% increase is very high. Customer reaction should be something that should be foreseen. Should the customer take it wrongly, then the company, along with its reputation, could be at stake. This is why all the stakeholders involved ought to contribute to the issue and come to a consensus if there should be an increase or not (Cavalcanti