Apple Inc. Demand and Supply Analysis

Supply and demand analysis of Apple Inc. products The concept of supply and demand are closely related and need to b well understood in order for any business or company to progress since they determine whether a company will make profits at the end of the financial year or make losses. There ae several factors that influence or affect the supply and demand of products in the market, some of which are price related and others not related to price.

This paper will hence look into various factors that influence the demand and supply of the Apple products and how the interaction helps shape the future of the organization in terms of quantity produced and the changes in their products and innovation. The two non-price variables that affect the demand for the Apple products are customer income and the geographical region. The Apple products are often priced for a given group of income and often target the high earners as opposed to the low earning groups.

Apple uses the premium pricing strategy that helps them to define their customer base and in most cases drive up sales (Nielson S., 2014). The premium pricing strategy helps Apple concentrate on the high earning population and monopolize this market as the customers keep buying their products for the pride of belonging to a select class. This hence drives up the quantity demanded in order for them to satisfy this class as the monopoly. The demography of location or the geographical location of their stores also affects the quantity of demand.

Apple has its stores located in selected busy upmarket malls and their outlets are predominant in countries that have the economic muscle to provide the market for the premium priced goods. In developing countries, Apple minimizes its outlets with just one or two outlets at the economic hub in those countries. These geographical locations of their outlets are often tailored to meet the exact demand that there is hence the quantity of demand rarely exceeds the supply.

The two major non-price factors that affect the supply of Apple products are the competitor prices and the goodwill that their products have in most of the markets that they have been supplying over the years. Over the years, there have been competitors like the Samsung and the HTC brands that have posed a real challenge to iPhone and other products of Apple. This threat comes in both the level of technology and the price of the competitor goods.

This makes the other competitors to be able to supply in greater quantities than Apple in the low end market which, unfortunately to Apple, is open to both high end and the low end earners. The goodwill that most of the Apple products have bearing their high quality and the distinction in terms of class created makes them to have a potentially high supply ability within most geographical regions that Apple has operated in, as dictated by the demand (Amadeo K., 2015).

Bearing the successful sale of the iPhone 4, Apple looks at a prospect of having even better sales with the iPhone 6 and other products. This is because of the demand elasticity which is considered to be elastic among the customers who view Apple products as a necessity that need to be owned without a possibility of substitutes. This caliber of customers constitutes the majority of the client base of Apple.

This means that there high demand will continue to be experienced by Apple as it has always been the case with the demand outstripping the supply of their products like the iPhone 5 and iPhone 6 (Hughes N., 2014). The industry that Apple operates in is currently dependent on the level of information technology and inventions that help shape it.

The players in this computer and mobile phone technology plus the software accompanying these items have heavily invested in the research and inventions hence there are some external factors that Apple has to keep an eye on in order to remain competitive and safe for the future. One direction that has to be central in Apple consideration is the evolution of technology which has been their stronghold that helps them attract the high demand that they have.

There is need to extensively research on the new levels of technology that the competitors may come up with so that they are not caught up in the level field of the market, since one of the central reasons why people love Apple products is because of their great lead in technology above the rest of the market that is left to copy and try to catch up. The other external factor that Apple has to keep an eye on is the issue of budding potential markets.