Apple iphone 5 - Research Paper Example

In its early days of introduction unto the world market, the Apple iPhone 5 received so much patronage because of some feature qualities that the product had over other competitive products and other iPhones that had been introduced unto the market by the same company. But as it is now, there is decline in supply to meet increasing demand. Causes of the shift Basically, there is one running cause of the shift in supply of Apple iPhone 5 and this is directly linked with rate of production. Sources close to the company actually indicate that the Apple iPhone 5 is one of the most labor and skill intensive products that the company ever produces (Birks and Sinclair, 2010).

To this end, it actually requires the company so much time, cost, skill and resources to produce a single brand of the Apple iPhone 5. But as a company that wants to hold up to its reputation of quality and standard production of phones, the company is not in any way ready to compromise on the quality of products in the name of meeting its demand to produce as many pieces of the iPhone as the market pressure demands for. There are other causes that has to do with the presence of competition, that makes the company highly reserved on the need to keeping so much inventory when it cannot be perfectly guaranteed of the willingness of the market to opt for their product.

Effects of this change on Apple iphone 5 According to the law of demand and supply, decrease in supply subsequently leads to an increase or a rise in prices. This principle is likely to be the effect of the Apple iPhone 5 especially from the perspective of retailers from who consumers make direct purchases. For example once retailers have access to limited products and they are aware that consumers would compete for these few products they will increase prices so that those with the highest bid of purchase can own the product.

There could also be the negative effect whereby the increases in prices will make consumers opt for other competitor products; especially if they can be guaranteed to have similar features from those products. In the worse case scenario, the Apple iPhone 5 will loss its popularity and market share because consumers who may be frustrated with its absence on the market will loss interest in it. Effects within the market Operational Operational marketing is basically centered on the consumer whereby the consumer is expected to receive maximum customer satisfaction by meeting their needs and demands within the shortest time frame (De Cenzo and Robbins, 2011).

In a situation whereby there continue to be decline in supply for the Apple iPhone 5, it is very clear that the customer is not going to receive the needed satisfaction with prompt customer service. Subsequently, market operational is going to be affected negatively in the sense that there are going to be high levels of market dissatisfaction expressed among cunstomers. As it has been stressed already, this is likely to bring about the worse case scenario whereby the company may loss out on a number of customers.

Financial Effects The financial effects of the prevailing situation whereby there is shortage in the supply of Apple iPhone 5 could be viewed from two major perspectives, which also answers the question of whether the effects are long term or transitory. Indeed, on the short term basis where the demand for the product continues to be