iPhone Demand Outstrips Supply in

ChinaBy: Haodi Zhang

GraphThe Shift in Quantity Demanded and Supplied in Response to the change in Price 

Quantity Supplied vs. Quantity Demand

D

Quantity Demand

(Preorders)

Supply (iPhone)

D1:5

Stakeholders

Winner

Loser

Unknown

Consumer

(Without Phone)

AppleChina Mobile

China TelecomChina Unicom

ManufacturerSeller on

Internet

Consumer

(With Phone)

Why is the Demand so High?

O People are making more money in China so they want a better phone

O iPhone has good 3G connection

O A person can buy many of it, and sell it for a higher price

ProblemO The quantity supplied of the iPhone

is not catching up to the consumer, and consumer’s can substitute iPhone with other phones.Competition

Alternatives

Candy Bar GridChoice iPhone

or not (3)

3G network (2)

Readily available (2)

Total

iPhone 4 +3 +2 -2 +5, -2Other Smartphone

-3 +2 +2 +4, -3

Normal Phone

-3 -2 +2 +2, -5

GraphThe Shift in Quantity Demanded and Supplied in Response to the change in Price 

SIM cards in China

ConclusionO The suppliers needs to increase the

supply

O They should open more retail stores

O In conclusion, if they follow their plan, it will be fine