iPhone Demand Outstrips Supply in China
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Transcript of iPhone Demand Outstrips Supply in China
iPhone Demand Outstrips Supply in
ChinaBy: Haodi Zhang
GraphThe Shift in Quantity Demanded and Supplied in Response to the change in Price
Quantity Supplied vs. Quantity Demand
D
Quantity Demand
(Preorders)
Supply (iPhone)
D1:5
Stakeholders
Winner
Loser
Unknown
Consumer
(Without Phone)
AppleChina Mobile
China TelecomChina Unicom
ManufacturerSeller on
Internet
Consumer
(With Phone)
Why is the Demand so High?
O People are making more money in China so they want a better phone
O iPhone has good 3G connection
O A person can buy many of it, and sell it for a higher price
ProblemO The quantity supplied of the iPhone
is not catching up to the consumer, and consumer’s can substitute iPhone with other phones.Competition
Alternatives
Candy Bar GridChoice iPhone
or not (3)
3G network (2)
Readily available (2)
Total
iPhone 4 +3 +2 -2 +5, -2Other Smartphone
-3 +2 +2 +4, -3
Normal Phone
-3 -2 +2 +2, -5
GraphThe Shift in Quantity Demanded and Supplied in Response to the change in Price
SIM cards in China
ConclusionO The suppliers needs to increase the
supply
O They should open more retail stores
O In conclusion, if they follow their plan, it will be fine