Apple iPhone X Demand Strong, But Supply Is A Growing Concern.

5 min readDec 3, 2019

I am an introductory economic student and I want to try the economic model and graphs to understand about the latest news I came across related to the demand and supply of iPhone X.

Apple Company was founded on April 1,1976, by Steve Jobs, and Ronald Wayne as a business partnership. The company’s first product is the Apple I, a computer designed and hand-built entirely by Wozniak, and first shown to the public at the Home brew Computer Club.

THE RISE OF iPhone X..

iPhone X. iPhone X (pronounced “iPhone Ten”) is a new smartphone from Apple that the company announced on September 12, 2017. The iPhone X gets its name from being a limited-edition “exclusive” model for 2017 as well as from its debut coming on the tenth anniversary of the original Apple iPhone release.

MARKET SHARE OF iPhone X

Apple made an entry into the top 10 smartphone brands due to price cuts on XR along with good demand for its iPhone X.

WORLDWIDE UNIT SALES OF iPhone

DETERMINANTS THAT AFFECT THE DEMAND AND UNIT SALES OF iPhone ARE:-

Ø Buyers taste and preferences.

Ø Consumers could also get bored with a certain brand and hence switch to Apple.

Ø A change in income levels.

Ø Popularity of the brand.

HOW DEMAND AND SUPPLY CURVE OF iPhone X AFFECTS.

DEMAND FOR iPhone X INCREASES DRASTICALLY-

Since the launch, of the iPhone, it is evident that the demand of the product has been increasing, and there is fear that the latter may be overlapping the supply of the product. According to the laws of demand and supply, this behavior can be seen as a positive demand shift.

In definition, it is a point where the demand of a product increases. Increase in demand may occur during holiday seasons, or when a product becomes more popular in a market. The law of demand states that when the value of either a good or service is low, then the demand is high.

However, when the price of a commodity is high, then the demand of that product decreases. On the other hand, when the price of a commodity is high, then the supply of that commodity is high, and when the price is low, the supply is also low. This falls under the supply law. When there is a shift in demand, either negatively or positively, there will be a definite need for change in price and quantity of thee product to have a balanced equilibrium point. In other words, when if the consumers for a particular product increase, there should be an increase in supply of that product.

**MORE DEMAND AND LESS SUPPLY OF iPhone X**

SUPPLY OF iPhone X GOES DOWN DRASTICALLY.

Apple’s new iPhone XS and XS Max saw lower sales in the Indian market with several large retailers across the country saying they are for the first time left with little less than half the stock supplied to them after the first weekend sales.

This is in stark contrast to earlier years when demand would be much higher than supplies with Indian shoppers queuing up outside stores to grab the new iPhone. Apple had imported about a lacs units of the new iPhone's, expanded availability to more stores and more markets to ensure high sales momentum at launch but fail drastically due to non-supply of iPhone in the market on time.

**Apple iPhone X’s supply is the biggest concern of growth**

Due to non availability of supplies of iPhone X demand decreases in the short span of time which leads to the loss of market share to APPLE.

Elasticity or In-elasticity of Demand of a iPhone X

In the question of elasticity or in-elasticity of demand of a product, Apple’s iPhone should be easy to analyse. In the first place, elasticity in demand of product relies on several factors which include, accessibility or availability of products that can substitute the basic commodity, income of the consumer which enables him to consume the good and time that a consumer may use to stop using a particular commodity.

In the case of Apple’s products, the iPhone is an elastic product on demand. This is because the product is in a competitive market whereby consumers may opt to use other smart phones with similar applications. So, if the price of the iPhone goes high beyond the consumer’s meet, then, it is very easy for them to look for substitute products. At the same time, if the supply of the product is low, then the sale of the product would not be successful because consumers may opt to look for alternative products.

According to the economics theory of pricing and revenue, it is only logical that if the prices of a product increase, then the revenue should increase. With the improvement in technology, Apple has been able to produce high quality product which have quite a show of demand.

ELASTIC DEMAND OF iPhone X DUE TO LESS SUPPLY AND ITS COMPETITOR SUBSTITUTES.

**CHANGES IN DEMAND AND SUPPLY OF iPhone X AND ITS SUBSTITUTES**.

Conclusion

In my opinion, Apple may have success in increasing prices of some of its products, which is an, eventual gain in the company. In the law of demand and supply, the company seeks to reach different markets with different products and at varied prices, which in my opinion, seem to stabilize the supply and demand equilibrium and also company should be more focused on supply instead of price hike.