Essays on apple iphone price elasticity of demand

Both the elasticity of demand and supply will influence the pricing strategies and profitability of the company.... Income elasticity of demand is the main elasticity that affects the sales of the IPhone.... Thus, technology is the main aspect that influences the company's elasticity of demand and supply.... The company's products will also be subject to price elasticity of supply.... price elasticity of supply measures changes in the supply of a product in relation to changes in prices....

The paper "price elasticity of demand" highlights that a negative coefficient on the other hand shows that the items may be inferior.... When a competitor reduces prices of its prices, rival organization will have to consider the calculation of cross-price elasticity of demand in estimating the impact of this price change on the demand for its products.... ractical application of price elasticity of demand ... he price elasticity of demand is widely used by commercial firms in determine and monitoring the performance of products in the market....

Since a pure monopoly does not have price elasticity, it is normal for any firm that has monopoly power to have its demand curve that is slowing downwards (Mankiw 2007).... The paper "Economic Analysis of the apple iphone" argues the market structure of the apple iphone within the market could affect its products' market price.... Since the contract between apple iphone and O2 has already ended, it is possible for an oligopolistic market to be created in the near future....

rice elasticity of demand for Apple's Products ... rice elasticity of demand for the 32-gigabyte iPad is ep= P/ (MC – P) ... rice elasticity of demand for the 16-gigabyte iPad is ep= P/ (MC – P) ... rice elasticity of demand for the 64-gigabyte iPad is ep= P/ (MC – P) ... Apple iPad has greater elasticity in absolute term as noted by Robert Hansen based on his comparison between iPhone 3G with price elasticity of -1....

The price elasticity of demand is a measure that tells how likely is a consumer to demand a particular good as its price changes.... he elasticity of demand comes into play when the writer mentions that many people are turning their backs towards iPhone 4 because of the recent controversy that surrounds.... The price elasticity of supply is the same concept extended to the supply side of the market.... This gigantic in demand can be explained by the bandwagon effect of demand, as explained in Economics....

It can focus on income elasticity, price elasticity of demand and cross-elasticity. ... ross- price elasticity of demand: If a substitute brand, for example, Nokia reduces the price of its products, consumers are likely to buy Nokia due to the reduction in process.... rice elasticity of demand: consumers are very sensitive to the price of a product and there is an indirect relationship between the quantity demanded and the price.... ncome elasticity of demand: As for Samsung, with a rise in income, the consumers will move to superior substitutes like Apple....

This is also especially important because the firms launches a new version of its products very often and therefore it is important for the firm to use the elasticity of demand in order to clear the stock for the upcoming new products.... However, this is not a long term plan because research has shown that as more and more firms transfer their labor to China and India, the cost of labor in these places is increasing to fulfill the laws of demand and supply (for labor)....

price elasticity of demand refers to the responsive of quantity of goods demanded to a change in price.... It is apparent that the price elasticity of demand is inelastic because of brand loyalty.... rice elasticity of demand ... price elasticity of product has a significant influence on the pricing strategy that an organization is likely to use.... As a result, the company employs premium-pricing strategy, which means the price elasticity of Apple products is inelastic....

rice elasticity of demand ... ncome elasticity of demand ... ross elasticity of demand ... Apple's iPhone has cross elasticity of demand due to the presence of any substitutes in the market.... The reason for the cross elasticity of demand is because an increase in the price renders the iPhone unaffordable to many people yet they there is necessity for the device.... This paper will seek to analyze the elasticity of the product in terms of demand elasticity, income elasticity, and cross elasticity....

From the summary output, the coefficient have been considered and further analyzed for forecasting the sales of apple iphone 6 after six months of the launch. ... igure 3: Sales forecast of apple iphone 6 ... The above figure clearly indicates that sales of Apple's iPhone category have increased manifolds in past few quarters, owing to an increased demand among youths and professionals.... The demand of iPhones has constantly increased with the launch of upgraded models, which are supported with enhanced operating system, designs and available applications....

The company grew to become one of the leading smartphone makers in the world, lacking behind only Apple's iphone, Android phones and Windows-based phones.... The paper "Research in Motion - Blackberry Smartphones" highlights that there are several external pressures as well that affect the sales, hence, the market share of Blackberry....

The price elasticity of demand of iPhone5S would vary depending on the geographical location.... rice Trend, Reason for Price Fluctuation, demand Elasticity and Substitutes 9 ... rice Trend, Reason for Price Fluctuation, demand Elasticity and Substitutes ... where the average income of a person is higher would have an inelastic demand as compared to developing country like, Malaysia, where it would be elastic.... Therefore, if the price of the iPhone is decreased in emerging countries due to its high popularity, the demand would increase (Ramirez, 2015)....

The price of the products is shown by OP and this is dictated by the demand curve AR.... The slope of the MR is twice the slope of the demand curve D.... The average total cost represented by ATC is a tangent to the demand curve at point O.... The reason is that the demand curve shifts to the left but the process moves slowly till economic profits are zero (Arnold 2011).... Close substitute products have greater unity of close elasticity....

actors that will affect Total Revenue price elasticity of demand price elasticity of demand and the total revenue of the company are strongly interrelated issues.... The factors that will affect demand, supply, and prices of that productThe demand, supply and prices of the product, such as apple iphone 6 or a newer model of device depend on a set of factors, including: the preferences of consumers, degree of innovation of device and product life cycle, change in income levels, cost of production, competition, etc....

he price elasticity of demand defines the relationship between price and quantity demanded. ... hereas, the cross-price elasticity of demand show the relationship between two related commodity ... he time horizon for a consumer or the time taken for analysis will also affect price elasticity of demand.... The author of this paper "elasticity of demand and Cross-Price Elasticity" examines the elasticity of demand as the relation between any change and variation in the prices of goods or services that would ultimately affect the quantity demand of those particular goods or services....

This research paper will also analyze the price elasticity of demand and supply of the selected products.... This paper will use the demand and supply analysis model and concepts to evaluate the selected Apple Inc product.... The data collected from the selected Apple store will also be used to calculate the regression analysis, which be used to estimate the forecasted sales and demand for the Ipads.... The data collected from the selected Apple store will also be used to calculate the regression analysis, which be used to estimate the forecasted sales and demand for the Ipads....

Factors affecting Total Revenue (TR)price elasticity of demand: price elasticity of demand MacBook is low.... However, price elasticity in the lower segment of market, which represents the students or teenagers who use it for general or recreation purpose and for showing status, is high which may result in fall of TR.... The success of business organizations and their products depends on various factors in the market such as demand and supply, prices of the products, competitive intensity, the threat of substitution, etc....

This implies that it has income elasticity of demand.... Analyzing the cross price elasticity of the device, we realize that Blackberry phones are highly differentiated and serve a niche market.... lackberry phones have very low price elasticity.... he demand for Blackberry phone has significantly increased because most businesses have adopted enterprise technologies and there is a growing concern of employees who want to gain access to corporate data securely while out of office....

price elasticity measures the changes in quantity demanded due to change in prices, whereas income elasticity measures the changes in demand due to changes in consumer income.... The overall demand therefore is considered as dual in nature as the firms not only have to focus on the demand from the consumers but also depend upon the likely reactions of other firms in the market also. ... he above curve shows a kinked demand curve for a firm working in oligopoly market indicating that if a firm increases the prices and other players in the market don't follow the move, there will be larger substitution effect....

It also reduces price elasticity of demand.... Business Strategy Report - apple iphone 6/6+ Case study ... apple iphone 6 or 6+ in the market with different innovative features.... apple iphone 6 is power efficient with HD quality display.... In this regard, Apple perceives the demand of the consumers and supplies iPhone 6 based on the needs of the customers (Zemsky & Audner, n.... Quality specifications of Apple have enlarged the demand of the products such iPhone 6....

The product, therefore, experiences complete elastic kind of demand.... Elastic kind of demand has very little or no effect on, especially price of luxuries such as Samsung galaxy S4.... Laws of supply and demand have affecting production and pricing of Samsung Galaxy S4 The first law of demand and supply, states that, at high market prices, more is supplied and at low market price less is supplied.... However, the company has broken the rule of demand and supply that states that at high price, fewer goods are bought (Tidd, 1997)....

igure 2: Graph depicting demand elasticity of new products by Apple Inc. ... take decisions regarding the production levels of the electronic goods manufactured by the company depending on the demand conditions of the customers.... has introduced the new range of computers in the years 2009 and the demand was highly elastic to the price (Pollock and Williams, 2009).... Before the introduction of the MacBook Wheel the demand curve was flatter and after the introduction of the new range of computers there evolved a steeper demand curve and the company earned a higher profit (Angulo, 2009; Gillespie and Dietz, 2009). ...

Assuming a price elasticity of demand equal to one for the main search engines and digital communication firms, still Apple iTunes has successively attracted more customers than others by integrating a host of free services that span across seamlessly through connected links to such sites as financial services and share market information. ... The digital music market segment is ruled by the same economic principles but its qualitative shift has brought about a highly articulate population of consumers whose demand for the product at a given time is determined not only by the price and income but also by cross elasticity of demand based on comparative competitor advantage....

The demand cross price elasticity of two unrelated products is either zero or near to zero, for example, the increase in demand of water will have no impact over the demand of shoes.... But when the nature of products is differentiated then the cross price elasticity has significantly positive results (Barrows, 2009:110).... The demand curve for Smartphones is expected to move leftwards because of the highly monopolistic competition which allows a great number of new entrants into the market without any restrictions....

This implies that it has income elasticity of demand.... Analyzing the cross price elasticity of the device, we realize that Blackberry phones are highly differentiated and serve a niche market.... Blackberry phones have very low price elasticity.... The demand for smartphones is on the rise and Research In Motion Company can take advantage of this to keep producing products.... The demand for Blackberry phone has significantly increased because most businesses have adopted enterprise technologies and there is a growing concern of employees who want to gain access to corporate data securely while out of office....

Secondly, for different groups of consumers it is necessary to have different price elasticity.... For example, assume that all consumer groups have the same price elasticity then ceteris paribus; monopoly firm does not have an incentive to apply PD as the profit will be the same as a firm would have applied single price strategy.... For example, if a firm is a price taker and its operates in perfectly competitive market it cannot price discriminate as demand curve is perfectly elastic, therefore there is no consumer surplus to capture, whereas if a firm is a monopoly it has a downward sloping demand curve therefore, there are some consumers who are willing to pay more than the uniform price....

Apple has found a way to determine the price elasticity of its product based on perceived demand in the markets that it serves.... The negative elasticity of the iPad product has certainly contributed to Apple's bottom line by allowing them to meet the demands of a growing market by providing a quality product at a pricing point that enables them to achieve maximum profitability. ... price elasticity is at play here, when consider Apple's ability to operate at such a high level and retain high profits....

At the same time, there is a heavy reliance on group affiliation and group membership in China that continues to feed growing consumption demand ratios for mobile phone products as a means to stay connected with other Chinese family members and peer acquaintances.... There is also a growing demand for mobile services in the business environment for executives and generic employees alike, representing a whole different market segment other than just the middle class Chinese buyer....

There are a number of demand factors affecting the digital music markets online.... he level of demand in the market is determined by the income variable of buyers.... Equilibrium price is determined more or less by some of the same above factors in addition to the level of supply and the elasticity of supply.... The author discusses the factors of supply and demand facing the industry and shows the issues which these raise for management....

However, it has not taken into account the elasticity of the consumers' demands.... Since most of the mobile phone firms use similar key parts and components from a famous and sole supplier, their demand increased rapidly resulting in the shortage of a good supplier.... Its closed ecosystem strategy helps it to settle with large discounts on the main component in the event of high demand.... Fluctuating consumer demand puts burden over supply of items....

However, with the introduction of the iphone and other smartphones, Nokia was unable to retain its position.... okia, recently, underwent a change in operations and management but despite this Nokia is still leading after Samsung and apple.... The smartphone market has recently seen an increase in competition as even non-mobile companies like apple have launched their products and have even succeeded to a great extent....

These economic theories are those of price elasticity of demand, and supply-and-demand theory.... price elasticity of demand is one concept that can be related to the general issue, which is the traditional retail CD market, and how it has responded to the new market of people downloading songs over the internet.... The basic item for consideration in this relationship, in terms of price elasticity of demand, is the song.... And the demand for the product or song is called inelasatic, through price elasticity of demand theory, if a customer is willing to pay a premium for the song....

This paper shows how Nokia can develop a marketing plan by implementing their past strategies, which the company has already applied.... The aim of the marketing plan is to develop an environment friendly mobile phone which Nokia is going to launch in their existing markets.... ... ... ... The aim of the marketing plan is to develop an environment friendly mobile phone which Nokia is going to launch in their existing markets....

There are a number of demand factors affecting the digital music markets online.... he level of demand in the market is determined by the income variable of buyers.... Equilibrium price is determined more or less by some of the same above factors in addition to the level of supply and the elasticity of supply.... Surveys have proven that over the years the demand for digital music has increased by manifolds.... The popularity of iPod and Apple Mac are subject to demand....

It was seen that the as we move along the product life cycle of iPad, the price elasticity of demand was low.... he success of this pricing strategy is dependent on the inelasticity of demand for the product by the market segment or by the market as a whole.... Later when the demand falls a little then the prices are lowered and the late adopters then accept the product. ... Such high prices can be enjoyed by a company when the demand is relatively inelastic....

It is widely known for its unique market success and its share price has recently been gaining sufficient growth in the market.... The paper "apple as the Largest Technology Company" highlights that apple's technology, innovation, retail marketing, brand loyalty, greater investment in R&D, increasing share in the market have in fact helped the company become very successful in its marketing landscape.... apple Inc has become the world's largest technology company....

However, with the introduction of the iphone and other smart phones, Nokia was unable to retain its position.... Nokia, recently, underwent a change in operations and management but despite this Nokia is still leading after Samsung and apple.... Nokia is a company that is known and respected throughout the world....

The sale of BlackBerry determinants focuses on the price mechanism of demand and supply.... The issue at hand will involve the elasticity of various parameters such as demand, supply, income, substitution and the factors of production.... The elasticity of either the demand or supply will communicate many things. ... A paper "BlackBerry: Understanding Economic and Political Performance" points out that the demand influence emanates from issues such as the user compatibility, the originality of data and the ability to prompt anyone in the case of loss or emergency....

The prime purpose of the paper "The Factors That Affect apple Brand Strategy" is an attempt to elucidate on the concepts of Value Addition and Branding in today's competitive, highly unpredictable, unstructured, unclear, and unstable business environment.... The research moves on with a Case Study on apple Incorporation after which the author will discuss appropriate findings and analyze the scope of Research Questions.... Finally, the paper will discuss Research Limitations, Suggestions / Recommendations to strategic planners of apple Company and will end this research project by providing conclusions, which will be drawn from the current use of brand strategies, their scope, and workability in future....

Some of these factors include economic downturn, recession, the willingness of the people to buy the game, household income, business cycle, and the elasticity of demand.... Some of these factors include economic downturn, recession, the willingness of the people to buy the game, household income, business cycle, and the elasticity of demand.... However, due to a variety of other games, Anki drive will be affected by the elasticity of demand....

It was seen that the as we move along the product life cycle of iPad, the price elasticity of demand was low.... Generic Graphic The success of this pricing strategy is dependent on the inelasticity of demand for the product by the market segment or by the market as a whole.... Later when the demand falls a little then the prices are lowered and the late adopters then accept the product.... Such high prices can be enjoyed by a company when the demand is relatively inelastic....

hat factors determine the price elasticity of demand?... he factors affecting price elasticity of demand are:The cost of switching between products-If there are switching costs the elasticity of demand is less.... he degree of necessity of the product or service- Necessity goods and services tend to have low price elasticity of demand.... Luxuries have high price elasticity of demand.... eriod for change- if the period allowed for change is small the price elasticity of demand is low but in the long run it is high due to the increase in time that is allowed for change....

he income elasticity of Glass Phone is very high.... The idea of Glass Phone was developed by the huge spending and expansion of mobile phone products and the demand for innovative features of expensive mobile phones within people.... The idea of Glass Phone was developed by the huge spending and expansion of mobile phone products and demand of innovative features of expensive mobile phone within people.... s demand for the product sensitive to recession?...

Apple has found a way to determine the price elasticity of its product based on perceived demand in the markets that it serves.... The negative elasticity of the iPad product has certainly contributed to Apple's bottom line by allowing them to meet the demands of a growing market by providing a quality product at a pricing point that enables them to achieve maximum profitability.... price elasticity is at play here, when consider Apple's ability to operate at such a high level and retain high profits....

price elasticity of demand (PED) is the sensitivity of quantity demanded.... The company should estimate the demand and costs associated with alternative prices and choose the price that produces maximum current profits, cash flow, or rate of return on investment.... However as the product matures in the market and if the company is pursuing to keep the product in the market, it would be recommended to utilize the market-skimming pricing strategy as a sufficient number of customers would have a high current demand and high price communicates the image of a superior product....

Hence, Sony's success comes from due to the ability of the company to produce products that are able to meet the needs of their customers without financial constraints as their quality dictates the price (Ferrell & Hartline, 2011).... Sony strategic management and leadership Name Institution Course Introduction Sony International Corporation is a Japanese multinational company with its headquarters in Tokyo Japan....

The current economic situation in Europe has put a dent in the consumption level for all kinds of products including apple iphone and iPad devices.... In absence of substitutes the monopoly firm can charge high price for its product depending on the product's demand elasticity.... Since UK has a free market system, the government adopts the approach to ensure that market conditions are capable of making efficient use of scarce resources, and the price mechanism is controlled by demand and supply forces....

elasticity of demand is also high.... demand for phones is highly sensitive in relation to the economy.... Lastly, mobile phone manufacturers are trying to cope with the rising demand for Wireless Local Loop (WLL) technology.... In addition, there are price cuts for trade-in of products.... They have a good price range and are accessible to people from different social classes (Adam, 2010).... This is a source of concern, especially considering that with difficult economic times, the sensitivity of buyers to price is likely to be greater (Mimoun, 2009). ...

Change of demand and Profit Maximazation Name Professor Institution Course Date Executive Summary There is a close relationship in change of demand and the overall profit objective.... Change in demand can be instigated by natural market factors or voluntary actions by corporations' tech stock exchange companies being close examples.... The discussion will further analyze two strategies of how multinational corporations attempt to maximize profits by utilizing increased demand....

Although, price elasticity may be high because of the modification in customer behaviour and the preferences, as well as the lowered purchasing power of the consumers, makes buyers a threat. ... Nevertheless, the organization with vast experience such as apple iphone, which also in the same field as Nokia have the ability to transfer knowledge and hence not deterred by the huge cost required operating efficiently.... Since suppliers are influenced by the demand of the consumer, their power becomes medium....