How the iPhona Changed Modern Economics Essay Example | Topics and Well Written Essays - 1500 words

How the iPhona Changed Modern Economics - Essay Example According to the company, an estimated 200,000 iPhones were pre ordered the very day that the phone went on sale in the country and another 400,000 were sold on that day. The company was able to attract so many buyers because of the popularity that the phone had gained over the Chinese market because of the sale of its previous model, which had further excited a wider consumer base. Even though the phones are more expensive, they offer better features as well as data services which have attracted.In economic terms, it is clear and evident that this particular phone has appealed a great deal to at least half of the Chinese market because more and more people have bought it at the price at which it was launched. The iPad was also released in China and went on sale at a fast pace as well. However, the crux of the matter remained that the iPhone’s demand exceeded the supply that the company was able to give to the people. This goes to show that there was an extension of demand in the particular commodity at the same or even higher price. Since the iPhone 4 was costlier than the previous version, an extension (and not just an increase) in demand can be noticed here in economic terms which means that there is movement along the demand curve.As per the article, â€Å"As of the second quarter, Apple was the fifth-largest smart phone vendor in China with 7.1% of shipments, according to Beijing research firm Analysys International. Nokia Corp. had the largest share with 26.7%.†Ã‚