IPhone Demand Outstrips Supply in China By: Haodi Zhang.

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Presentation transcript:

iPhone Demand Outstrips Supply in China By: Haodi Zhang

Graph The Shift in Quantity Demanded and Supplied in Response to the change in Price

Quantity Supplied vs. Quantity Demand D Quantity Demand (Preorders) Supply (iPhone) D 1:5

Stakeholders Winner Loser Unknown Consumer (Without Phone) Apple China Mobile China Telecom China Unicom Manufacturer Seller 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

Problem O 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 Grid ChoiceiPhone or not (3) 3G network (2) Readily available (2) Total iPhone , -2 Other Smartpho ne , -3 Normal Phone , -5

Graph The Shift in Quantity Demanded and Supplied in Response to the change in Price

SIM cards in China

Conclusion O 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