Apple vs Samsung
Application of Microeconomics concepts
1. Apple: ‘We can't keep up with demand’
Global passion for Apple unabated as consumer demand outstrips supply across iPhone,iPad and iMac ranges, Apple says. As Apple announced record profits, chief executive Tim Cook confirmed that even supplies of older, cheaper models of the iPhone were not enough to satisfy demand, and that sales of iMacs fell primarily because the company could not make the new design fast enough. He added that iPad Mini demand, too, continued to outstrip supply as consumers flocked to the device that Apple’s Steve Jobs had said the company should never make. From this article we can infer that in the short run the supply curve of apple products is relatively inelastic due to supply constraints which include delay in assembling and manufacturing process. To complicate matters, Apple's largest contract manufacturer Foxconn
Technology closed a factory in the northern Chinese city of Taiyuan after a riot broke out among 2,000 employees. Foxconn did not confirm which plants supply Apple, but an employee told Reuters the Taiyuan plant is among those that assemble and make parts for Apple's iPhone 5.Apple referred questions on the factory to Foxconn. The California company also assembles its devices at factories run by Pegatron Corp.
On the parts side, Apple's key supplier for screens, Sharp Corp, has been struggling with high costs and scrambling to raise funds to pay debt. Sources had told Reuters the company's output of new iPhone displays had fallen behind schedule.
Thus the supply curve of Apple products would be as follows:
Supply curve of Apple Iphone in the short run
2. Increase in demand coupled with supply constraints
The early total for the iPhone 5 topped sales of the iPhone 4S, which sold more than 4 million units in its first weekend after Apple introduced it in October 2011. The numbers do not include units that have yet to be shipped or delivered to customers as Apple books sales
1. Apple: ‘We can't keep up with demand’
Global passion for Apple unabated as consumer demand outstrips supply across iPhone,iPad and iMac ranges, Apple says. As Apple announced record profits, chief executive Tim Cook confirmed that even supplies of older, cheaper models of the iPhone were not enough to satisfy demand, and that sales of iMacs fell primarily because the company could not make the new design fast enough. He added that iPad Mini demand, too, continued to outstrip supply as consumers flocked to the device that Apple’s Steve Jobs had said the company should never make. From this article we can infer that in the short run the supply curve of apple products is relatively inelastic due to supply constraints which include delay in assembling and manufacturing process. To complicate matters, Apple's largest contract manufacturer Foxconn
Technology closed a factory in the northern Chinese city of Taiyuan after a riot broke out among 2,000 employees. Foxconn did not confirm which plants supply Apple, but an employee told Reuters the Taiyuan plant is among those that assemble and make parts for Apple's iPhone 5.Apple referred questions on the factory to Foxconn. The California company also assembles its devices at factories run by Pegatron Corp.
On the parts side, Apple's key supplier for screens, Sharp Corp, has been struggling with high costs and scrambling to raise funds to pay debt. Sources had told Reuters the company's output of new iPhone displays had fallen behind schedule.
Thus the supply curve of Apple products would be as follows:
Supply curve of Apple Iphone in the short run
2. Increase in demand coupled with supply constraints
The early total for the iPhone 5 topped sales of the iPhone 4S, which sold more than 4 million units in its first weekend after Apple introduced it in October 2011. The numbers do not include units that have yet to be shipped or delivered to customers as Apple books sales