¶ … Apple Inc. Supply and Demand Apple is a U.S. multinational company that specializes in manufacturing and marketing of electronic products. Top Apple brands include iPhone, iPod, Apple Computer, and iPad. Globally, Apple is ranked as the second largest global electronic company with over $215.6 Billion revenue at the end of the 2016 fiscal year. Apart from the company superior financial performances, Apple has enjoyed high demand for its products globally based on the stylish method employed in designing the products. The iPhone is one of the major products of Apple Inc., and the company has recorded superior demand for the product since the product has been launched.

The objective of the paper is to investigate the supply and demand for the iPhone.

Supply and Demand for iPhone

The theory of supply and demand illustrates the quantity demanded versus the quantity supplied in the market. (Mankiw, 2007). The study discusses the supply and demand for iPhone which is one of Apple's major products. The study explores the law of demand and supply for the iPhone, and its elasticity of demand.

Demand and Supply: The law of demand illustrates the quantity of a product demanded in a given market....

Apples operate in a global market and iPhone 7 is one of the latest products that the company has released. Since the company has released the product, the demand for the product outstrips the supply. However, the law of demand and supply argues that the supply must equal to the demand for the market to reach the equilibrium. In the case of iPhone 7, Apple is unable to meet the demand for its product at its retail and online stores around the world.
Fig 1: Supply and Demand of iPhone

As being revealed in Fig 1, the Point A is where the market has reached its equilibrium. When demand is higher than the product supplied, there is a shortage in the market. However, when there is short of iPhone in the official market, the black market will increase their price creating another equilibrium price. When the iPhone 5 was sold in China, the black market started selling the same product at an unreasonable high price.

Trends in Demand and Their impact on the Firm and Industry

Apple has enjoyed an increase in the demand for the iPhone for the past 10 years between 2007 and 2016. In 2007, Apple recorded sales of 270,000 iPhone however, the sales increased to over 74 million units in 2016. In the first quarter of 2017, the sales of the iPhone has increased to 78 million units. An increase in the sales of the iPhone has led to an increase in the demand for smartphone globally (Statista, 2017) because consumers who cannot afford to buy the iPhone demand for another model of smartphone leading to an…