Watch this video and revisit your concepts of demand and supply. What particular trait of demand/supply is highlighted in this video? (hint: it is one of the determinants)
Please have your groups' responses for the following questions down in the comments latest by 12pm on Monday (11th April).
Discussion Questions:
- Apple is a dominant producer in the market for smart phones. How do they maintain this position?
- How are consumers' demand manipulated by Apple's marketing strategies?
- How does Apple affect supply of smart phones and what impact does this have on the Market Equilibrium?
DuckWeed
ReplyDelete1. perfect touch-screen technology; strong base supported by the popularity of Ipod products; consumers' frenzy about Apple.
2. keep updating generations pf products; Apple always stands against mainstream market (eg.apple VS Windows) therefore no substitues; "once an Apple, Apple for all", Apple has its own hardwares and softwares from MacBook to Ipod, from Mac OS to IOS. Apple doesnt accept others therefore consumers do the same.
3. Popularity of Iphone causes other suppliers to produce more touchscreen smart phones. Some suppliers may also choose to give up this market as they cannot compete with apple and shift their focus on other parts of market.
Generally, touchscreen phones are more expensive than the normals. Hence, the frenzy for touchscreen phones causes the equilibrium price to increase.
1.and 2.
ReplyDeleteApple has dominated the market for smart phones since the launch of Iphone in 2006 . Apple can do this because 1. it has a strategic marketing campaign and 2. its product proves unrivaled by other competitors . This has changed consumers' preference as they are manipulated into thinking that Iphone is the best choice .
Apple is also excellent in responding to users' capricious tastes . It vast , constantly upgraded apps is a big attration to consumers.
Other competitors like Nokia and Samsung lack a comprehensive strategy to compete with Apple in the apps sector .
AS a result , many consumers become loyal to Apple product . Despite having few , revolutionary upgrade in hardware recently, sale of iphones is always on the rise , showing that users are fiercely attached to IPhone .
Therefore , it is no surprise that Apple has been the dominant smart phone producer since 2006 .
3. The domination of Apple in the Smart phone market is a big obstacle to other producers . Nokia has lost 40% of its market to Apple since 2006 . AS many firms are driven out of business , the supply for smart phones decreases . This shortage creates a upward pressure on price equilibrium which increases .
Marx
ReplyDelete1 + 2.Apple has dominated the scene for smart phones since its release. This is largely due to its ergonomic design as well as its user friendly interface that provides a hassle-free experience. In addition, it boasts one of the fastest processing speeds of a phone which further entices speed-crazy society to buy the phone. However, aside from the appeal of the phone itself, apple also practices planned obsolescence (ie not putting a flash for iphone 3gs but in iphone 4) which spurs consumers to trade in or purchase its new iphone 4, thus increasing revenue. Furthermore, components within the iphone are non-modifiable and should a component fail, the phone either has to be sent to apple to be repaired or a new phone has to be purchased. This creates more revenue for apple as this limits the way other firms can affect the sales of the iphone.
3. By dominating the smart phone industry, apple has caused a drop supply for other smart phones made by companies such as (nokia, htc etc) as they anticipate a surplus in stocks. This, together with the increasing demand for the iphone has created an upward pressure on the market equilibrium for smart phones in general as there are also many consumers who will choose switch to substitutes of the iphone as the price gradually increases at an exponential rate.
3) Same as the above three groups. XD
ReplyDelete