Tuesday, March 15, 2011

Does Apple Synthesize Supply and Demand?

Who can avoid the inevitable lines outside the Apple store when they release a new product? It has been well established that if Steve Jobs had his hands on a product, the world wants it. Consequently, when my Dad and my brother woke up at 6 am to buy our Ipad 2 the day after it came out, I wondered why avid lovers of Apple products have a difficult time obtaining the latest gadgets. I realized the power of Supply and Demand. The idea of Supply and Demand indicates the relationship between the amount of product available and the number of people willing to pay for that product. These two factors, as a result, affect the actual price of the product. I started considering the reasons that Apple, an established company and without a doubt household name, would not have enough of a product to stock on shelves when there was a recent release. Was it that the approval process was too lengthy and Apple wants to start sales or is it, perhaps, does Apple wants to exude an air of exclusivity? There are many possibilities, but my theory is that Apple wants create a sense of adventure in obtaining a new product. Maybe, if a company releases an abundance of the new products, a sense of excitement and “buzz” goes away.

Regardless of the reason, I continue to love Apple as a company, and I will undoubtedly continue to be a face in the “day after release” new product line crowd.

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