IPhone 4 in China 2010 by Annegret Liederbach. Current Situation Supply < Demand Income Effect...

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iPhone 4 in China 2010 by Annegret Liederbach

Transcript of IPhone 4 in China 2010 by Annegret Liederbach. Current Situation Supply < Demand Income Effect...

Page 1: IPhone 4 in China 2010 by Annegret Liederbach. Current Situation Supply < Demand Income Effect Increase in Purchasing Power Chinese are becoming richer.

iPhone 4 in China 2010by Annegret Liederbach

Page 2: IPhone 4 in China 2010 by Annegret Liederbach. Current Situation Supply < Demand Income Effect Increase in Purchasing Power Chinese are becoming richer.

Current Situation

• Supply < Demand

• Income Effect

• Increase in Purchasing Power

• Chinese are becoming richer

• Enormous Demand

• Market Size

• Consumer Taste/Preferences

• To be supplied soon

Page 3: IPhone 4 in China 2010 by Annegret Liederbach. Current Situation Supply < Demand Income Effect Increase in Purchasing Power Chinese are becoming richer.

Video

Page 4: IPhone 4 in China 2010 by Annegret Liederbach. Current Situation Supply < Demand Income Effect Increase in Purchasing Power Chinese are becoming richer.

GraphShift in Supply and Demand of iPhones in China (2009-

2010)D1: Demand Curve of iPhone 3GSD2: Demand Curve of iPhone 4S1: Supply Curve of iPhone 3GSS2 (Possible): Possible Supply Curve of iPhone 4E1: Market Equilibrium Price of iPhone 3GSE2: Market Equilibrium Price of iPhone 4E3 (Possible): Possible Market Equilibrium Price of iPhone 4

Page 5: IPhone 4 in China 2010 by Annegret Liederbach. Current Situation Supply < Demand Income Effect Increase in Purchasing Power Chinese are becoming richer.

Stakeholders: Both

Page 6: IPhone 4 in China 2010 by Annegret Liederbach. Current Situation Supply < Demand Income Effect Increase in Purchasing Power Chinese are becoming richer.

Stakeholders: Losers

Page 7: IPhone 4 in China 2010 by Annegret Liederbach. Current Situation Supply < Demand Income Effect Increase in Purchasing Power Chinese are becoming richer.

Stakeholders: Unknown

Page 8: IPhone 4 in China 2010 by Annegret Liederbach. Current Situation Supply < Demand Income Effect Increase in Purchasing Power Chinese are becoming richer.

Problem

Sup

ply

Dem

and

This is a problem.

Give me my phone!!

Page 9: IPhone 4 in China 2010 by Annegret Liederbach. Current Situation Supply < Demand Income Effect Increase in Purchasing Power Chinese are becoming richer.

Alternatives: Producers

vs.

Increase Production Speed Maintain Current Production Speed

Page 10: IPhone 4 in China 2010 by Annegret Liederbach. Current Situation Supply < Demand Income Effect Increase in Purchasing Power Chinese are becoming richer.

Alternatives: Consumer

vs.Supply in progress. Please

wait...

Wait for the iPhone 4 Buy a different phone

Use iPhone 4 with SIM Card

Page 11: IPhone 4 in China 2010 by Annegret Liederbach. Current Situation Supply < Demand Income Effect Increase in Purchasing Power Chinese are becoming richer.

Final Decision: Consumer

Pros

Get the benefits of iPhone 4

Good for increasing patience

Cons

Takes time

Wait for the iPhone 4

Final Decision: Producer

Increase Production Speed