Thursday, November 4, 2010

Supply and Demand of IPhone 4 could hurt Apple

Article
http://www.edn.com/article/509611-iPhone_4_supply_and_demand_issues_could_hurt_Apple_brand.php

Summary
     Apple had only recorded 600,000 iPhone 4s for the pre-order which could mean trouble for their sales. This prompted Apple as well as its carrier AT&T to delay pre-ordering dates after just one day from June 14 to July 2 and then to July 14. The problem with this is that there are many competitors on the market which consumers could turn to easily. Apple is the third smart phone player on the market behind Nokia Corp and RIM and although North American consumers don't have many alternatives other regions in the world have many other options. Apple has many loyal fans but this mistake with their supply and demand will definately hurt their sales in the long run.


Connections
     The article addresses a mistake Apple had made with their supply and demand extending the pre-order date of their new iPhone 4. Although the iPhone 4 is highly sought after this will greatly effect their sales because many consumers will not be patient enough to wait for the release of the iPhone especially with so many alternatives on the market. The sales have been great but the problem is that there is simply too much competition and substitutes that are just as attractive as the iPhone 4. What Apple should do is increase their supply next time around because they have a product that will always sell.


Reflections
     I am not a iPhone4 user or a loyal fan of Apple and this would probably deter me from purchasing an iPhone4 simply because of the availability. There are many other phones on the market that appeal to me with cheaper price tags and similar capabilities. I am sure many other consumers feel this way and will simply purchase what is at hand as long as the product can satisfy their needs. However a large percentage of their phones will still be bought by their avid fans who are willing to spend big money on anything with an apple label.

2 comments:

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  2. I definitely get what you're saying. With so many places sold out of iphone 4's, people have had to turn away from apple and go with other products. With the launch of the Blackberry Torch from RIM and it being compared so much to the iphone 4, it would be interesting to see how much have sales increased for that item.

    -m. jiu

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