1. iPhone Demand Outstrips Supply in China By: Haodi Zhang

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

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

4. Stakeholders Winner Loser Unknown Consumer (Without Phone) Apple China Mobile China Telecom China Unicom Manufacturer Seller on Internet Consumer (With Phone)

5. 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

6. 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

7. Alternatives

8. Candy Bar Grid ChoiceiPhone or not (3) 3G network (2) Readily available (2) Total iPhone 4+3+2-2+5, -2 Other Smartpho ne -3+2 +4, -3 Normal Phone -3-2+2+2, -5

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

10. SIM cards in China

11. 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