Apple iPhone: Demand and Supply

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Market condition is determined by the ratio of supply and demand that helps to establish equilibrium in the market. They are interdependent elements of the market mechanism, where demand is conditioned by the needs of consumers, and supply is a combination of goods offered by manufacturers. The ratio between them is inversely proportional, determining the corresponding changes in the level of prices for goods. A modification in the relationship between supply and demand creates fluctuations in market prices around the so-called equilibrium price. These fluctuations establish the price level at which the balance of supply and demand and, ultimately, the balance of production and consumption is ensured. This paper aims to analyze the law of supply and demand on the example of the Apple iPhone market.

Main body

Apple is a leader in the global market, and with the advent of each new model, the demand for its products significantly increases. It is linked with the income level of potential consumers, the price at which they are presented on the market, and the preferences of buyers (Giachetti, 2017). Apple iPhones are associated with quality and convenience, and most users note the incredible simplicity and usability of the software offered by the company. Apple iPhones are particularly user-oriented, which is achieved through the use of various software services. Apple has tightened its process compliance and performance requirements to deliver the right supply with the right quality. Currently, the company is actively investing in new production technologies, such as milling machines, test stands, and lasers.

The next demand factor is advertising created by the brand name and the company’s reputation. Besides, consumer expectations play an important role since the company keeps the innovations in secret, thus heating consumer interest in a new product (Moon, 2018). Purchase frequency is also an important factor that affects demand volume. Those who prefer the iPhone have the opportunity to choose an earlier model, but it will most likely be expensive as well. Its average service life is 2-3 years; however, as a rule, the gadget is updated every year for a variety of reasons (Giachetti, 2017). Apple launches a new iPhone every year, with a tendency to slightly reduce the time between new models entering the market. This helps the company reduce its costs and maintain the demand for its product. However, Apple does not rely solely on customer loyalty and tries to be more flexible and respond more quickly to market demands.

The supply of iPhones meets its high demand since the data on the total sales of the company’s products show that production manages to satisfy the ever-growing consumer demand. The supply-demand ratio has been in equilibrium since the sale of the first models. Thus, the ratio of supply and demand indicators on the product market is rather unusual: when the price rises, demand not only does not decrease but also equalizes with supply (Moon, 2018). The Apple iPhone market has been very popular since its establishment. It covers millions of consumers while satisfying their needs from year to year. Demands are increasing, despite rising prices, and the production manages to keep supply volumes in equilibrium with demand.

The iPhones market is subject to the law of demand: at a higher price, more products are sold. Nevertheless, even in periods of price decline, the supply volume does not decrease (Moon, 2018). The reason for this is the infinitely growing demand for the company’s products. With a constantly growing demand for products, the company maintains the volume of supply, keeping the law of supply and demand in equilibrium. There is no deficit in the market for these smartphones leading to an increase in its price, and there is no excess that would cause its decrease.

The volume of supply and demand is influenced by a large number of factors, such as price, quality, and the level of consumer income. Therefore, it is difficult to anticipate any changes in the future, especially given the current economic situation in the world. However, knowing what the correlation of laws of supply and demand on the smartphone market is, several forecasts can be made. Even if prices increase, there is a high probability that demand and supply will grow as well (Hong, 2020). With the release of new models, older ones are reduced in price, which also increases the overall demand for the company’s products. This proves the ever-growing number of sold items every year.

The indicators of supply and demand in the market of goods will not decrease soon. Firstly, the company is trying to improve the characteristics of the product and its quality with the release of new models. Secondly, a huge number of users recognize the iOS operating system as perfect and are not going to change it (Hong, 2020). Changes in the tastes, habits, fashion, preferences, and desires of consumers also lead to an increase in demand and supply indicators on the market of Apple products.


To sum up, the demand in the Apple iPhone market has several characteristics: firstly, it covers a large number of consumers around the world, and secondly, it heats consumer interest and launches a new model once a year. The demand for this product is also associated with the level of income of buyers and the financial situation in the world, especially concerning sales outside the United States. The indicators of supply and demand on the product market coincide without forming an excess or deficit. There is no worthy competitor around the world able to change the indicators of the volume of supply and demand for Apple iPhones. The demand for this product is constantly growing, so there will not be a decrease in these indicators.


Giachetti, C. (2017). Smartphone start-ups: Navigating the iPhone revolution. Springer.

Hong, B. (2020). A demand and supply game exploring global supply chains. The Journal of Economic Education, 51(1), 42-51.

Moon, M. A. (2018). Demand and supply integration: The key to world-class demand forecasting. Walter de Gruyter GmbH & Co KG.

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