Introductions
There has been increasing demand for Apple products. The products are from Apple Inc Company, a multinational entity that produces and distributes electronics, online services, and software. The services are essential since people have adopted technology and prefer using technology in their various activities. An example of a product is the iPhone. An iPhone is a smartphone that is a product of the Apple Inc. company in high demand due to its services to human beings. The phone combines a digital camera, iPod, cellular phone, and a computer interface that allows for easier usage for people. (Balbi & Magaudda, 2018) The first iPhone entered the market in 2007 that helped challenge the global technology sector to adopt mobile computing. Since communication is essential in day-to-day activities, people communicate using telephones. However, people require quality telephones that are long-lasting and adopt the latest technological inventions.
There are several reasons why the iPhone is preferred, such as the security of the user’s information. Compared to Android telephones, iPhones rarely get viruses since the phone has pre-installed applications that are the most important, minimizing the chances of viruses corrupting the user’s information (Balbi & Magaudda, 2018). Apple carefully selects the app developers that get access to the device, its developed, and the device’s applications. Also, the telephone has updated operating systems since IOS products are only developed by Apple Inc., hence always ensuring an updated operating system to prevent threats on the security of the user’s personal information.
Also, the phone is simple to use since every application in the phone is launched on the home screen even when the iPhone is upgraded to the latest model. The operating system works similarly and makes it easy to use. Also, since the phones have the highest prices, their value is seen in their services and advantages. The Apple phones are of high quality, giving the owners the benefit of having the product’s resale value (Balbi & Magaudda, 2018). The product has up-to-date versions, making it convenient for the users to enjoy the most complex technologies. Also, the phone gives parents the security of tracking their children to ensure their safety. All these services influence the cost of the phone since when the services are good, the value of a product increases respectively.
How Price of the iPhone has changed in the recent years
iPhone was first launched in 2007, and the prices have increased by 81% across the globe. The company introduces new flagships in the market that influences the rise in the cost of telephones. For example, the latest model, iPhone 13, costs at least $437 more in all the countries where the phone is available (Hadi, 2021). Also, different countries experience inflation that influences the $154 cost that they pay more than purchasing the first model. The iPhone price index informs the public of the original launch price of the flagship and the charges that the phone is to cost in all countries.
The rise in phone prices is due to inflation and the phone’s highly advanced components and software. Inflation varies from one country to another. The company has experienced changes due to the segmentation and pricing of iPhone products (Garcia-Swartz et al., 2019). The prices of iPhones help the new models get better services to the customers and incorporate the consumers’ needs to achieve satisfaction. The product is increasingly in high demand due to its quality and the model that gives the consumers a sense of satisfaction while using the phone. However, the Price of other models consequently drops when a new version enters the market. For example, the iPhone XR price is $179, lower than before (Garcia-Swartz et al., 2019). The phone is also expensive since they last longer and therefore the rise in the price of new products entering the market such as the iPhone 13 that costs $999. This is expensive compared to other models, but the price compensates for the services and prestige of the uses of the iPhone.
Factors influencing the demand for iPhone
There are different series of iPhones such as iPhone 3, iPhone 4, iPhone 5, iPhone 6, iPhone 7, iPhone 11 pro and iPhone 13. Apple Inc. The company has comprehensive coverage of customers worldwide and therefore the increase in branches worldwide. Since there are advancements in technology, other companies such as Samsung Company are the most significant competitors of iPhone products (Garcia-Swartz et al., 2019). Although existing companies compete with iPhone products, the demand for iPhones continues to increase. The first factor is the tastes and inferences of the consumers. The phones are specified in ways that attract the customers, such as through the quality of the camera, the phone’s storage space, the security to secure the user’s personal information, and the battery life of the phone (Hadi, 2021). Although past models do not have significant advancement, iPhone products are continuously updated to satisfy customers’ needs for high speeds and security phones. For example, while iPhone 11 had 64GB storage and 4GB ram, iPhone 13 had 6 GB ram and 256GB storage (Garcia-Swartz et al., 2019). The improvement in the specification increases the demand for the iPhone models.
Also, the phone model influences the demand for the product. Since the brand has a series of its products, the models are different. The model of every series is independent and has different features than the others. The latest brand in the market is the iPhone 13 Pro Max has better specifications than iPhone 11 (Garcia-Swartz et al., 2019). iPhone 13 is in high demand compared to the other series. Therefore, although the products are from the same company, their demand varies according to the phone model.
Additionally, the change in the price of the other products of competing companies influences the demand for the iPhone. As the main competitor of iPhone products, Samsung phones are frequently updated to match the specifications of iPhone products (Garcia-Swartz et al., 2019). Suppose Samsung offers a specific phone having lower cost and offering a customer the same iPhone. In that case, this reduces the demand for iPhone products since consumers will have options that meet the specifications of the iPhone series (Garcia-Swartz et al., 2019). However, when a new iPhone series is introduced into the iPhone 13 Pro Max market, the demand increases before Samsung launches the other product.
The income of customers also influences the demand for iPhone products. Due to its high prices, the iPhone series is considered to be purchased by high-income customers, limiting low-income employees from getting access to the prestigious product. Therefore, increasing the personal tax allowance for employees increases the demand for iPhones since a higher population will afford the product in the market (Garcia-Swartz et al., 2019). It is because the consumer’s income proportion increases. The high number of customers is influenced to purchase the iPhone products through advertisements, increasing the demand for the iPhone series.
Factors influencing the supply of iPhone
The supply of a product refers to the number of goods that a company produces and is available to the customers. The Price of related products influences the supply of iPhone products (Framinan, 2021). An increase in the prices of competing companies such as Samsung allows an increase in the supply of the iPhone series since the market has a gap for the needs of the consumers to be fulfilled. Similarly, when there are fewer products of Samsung, the company produces and supplies more since the consumers purchase Samsung products compared to iPhone products.
The level of income of consumers influences the supply of iPhone products. Since the iPhone series are expensive, only a few people in the employment sector afford to purchase the products. The high earning employees afford iPhone products compared to low earning workers. Also, there are countries such as the United States and Spain where the supply of iPhones is high due to the percentage of high earning workers in those countries. However, the supply of the iPhone series is low due to the high number of low-income earners (Framinan, 2021). Therefore, the number of high-income earners influences the supply of the iPhone series. Changes in technological advancement influence the supply of phones. When a new technology is added to the series, there will be increased demand that will influence the company to supply more products to satisfy the customers’ wants.
Additionally, government policies influence the supply of iPhone products. Since the company is a global enterprise, the supply of iPhones is in many parts of the words. Different nations have different tax policies that influence the supply of the iPhone series (Framinan, 2021). When the taxes are low, there is an increase in the supply since there are fewer costs incurred in the payment of excise duty, while in countries with high tax policies, the supply is low. Tax policies influence the Price of the iPhone phones since when the tax is lower, the Price of the phones is reasonably low, while when the taxes are high, the Price of the phone increases, reducing the purchasing power of the customers.
References
Balbi, G., & Magaudda, P. (2018). A history of digital media. https://doi.org/10.4324/9781315209630
Framinan, J. M. (2021). Introduction to supply chains. Modelling Supply Chain Dynamics, 1-13. https://doi.org/10.1007/978-3-030-79189-6_1
Garcia-Swartz, D. D., Muhamedagić, M., & Saenz, D. (2019). The role of prices and network effects in the growth of the iPhone platform. Technological Forecasting and Social Change, 147, 110-122. https://doi.org/10.1016/j.techfore.2019.06.020
Hadi, A. S. (2021). The influence of product attribute, promotion mix, distribution channel, and price toward repurchase intention on iPhone. Asian Management and Business Review, 1(2), 95-104. https://doi.org/10.20885/ambr.vol1.iss2.art2
