While the iPhone 4S is being trashed by most people, AT&T has reported that they have sold over 200,000 in 12 hours and even calling it the most successful iPhone launch ever. Apple's preorder supply ran out in less than a day. So if so many people are disappointed with this release and the iPhone 5 rumored to be out in just 8 months, I am very surprised at just how well the iPhone 4S is doing. I have preordered one just because iPhone 3GS's battery is messed up and has been dying after using it for only 10-20 minutes. This is not a widespread problem so is the 4S selling so well because of Steve Jobb's death, or that the iPhone 4S is truly the bes smart phone out there? Or could it be that sales will even out as customers are afraid supply might be scarce, or is it because the novelty of the product?
http://www.usatoday.com/tech/news/story/2011-10-08/apple-iphone-pre-orders/50706650/1
3 comments:
Though people have seemed to be disappointed in release of the new iphone 4s instead of the iphone 5, as we have seen the sales of the phone have not stopped. As was stated, the iphone 4s presale supply has long run out. This excess in demand is a perfect example of the effects of the equilibrium price. The disappearance of the 4s off the shelves with in the release day indicates that the price of the new iphone is below equilibrium. This must be taken into account by apple and they must consider the two choices that they have. They can either take the risk of creating an excess supply by raise the price, or they can keep the price the same and loose potential revenue. I will be interested to see the choices Apple makes in the future.
Apple was rumored to hold back supply of the iPhone 4S to increase demand. If somebody saw that a store had an iPhone 4S on sale they would definitely buy it because they wouldn't have as much time to evaluate their opportunity risk. This happened to me with the Wii when it came out in 2006. I was thinking about getting a PS3 instead, but anytime I passed by a Game Stop or Best Buy I would asked if they had any Wiis in stock. After about two weeks I walked into a Game Stop, and asked if they had any Wiis and I already assumed the cashier would say no so I almost started walking off before he answered. He surprisingly said "yes" so I quickly bought it and ran out of there. Looking back on that I really should have bought the PS3 instead but the rarity of the Wii got me.
Just because the consumers demand was not met with the "new" iPhone not being the iPhone 5, but only the 4S, the demand for a new innovation that is so culturally popular would leave them waiting in line for 3 or more hours just to buy it. Along with the below equilibrium price of this product, the change in prices of all the other iphones have lowered immensely... for example, the iphone 3GS is now free if you buy a two-year contract with it... though it has the label of being free it still comes with some fees. However, could this maybe create somewhat of an equal balance for the iPhone 4S?
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