Apple Inc. Elasticity of Demand Cross Elasticity

Introduction: Apple, Inc. is an electronics and software company based in California, USA. Originally known as Apple Computer, the company is familiar to most people as innovators of the personal computer as it is known today. Apple Computer had introduced many of the now-commonplace features of personal computers, including the GUI, the mouse, the floppy disk drive, and color graphics. Apple Computer s Macintosh line of PC s had brought numerous software and hardware components within reach of the average home consumer, often in a stylish case and with an emphasis on usability. The restructured company, now called simply Apple, designs, markets, and sells not only personal computers but also consumer electronics in the form of†¦show more content†¦These three multinationals form the core of Samsung Group and reflect its name. Taking the Samsung Galaxy Note as a substitute product as it is classified as the world 2nd best cell phone . Samsung says it has sold over 2 million Galaxy Note superphones globally. Now, it’s only fair to remember that this number includes international sales, so even though the Note only became available on February 19 here in the States, it’s been on Asian shelves since October and U.K. shelves since November. Let’s put this in perspective. Apple sold twice that many (4 million) units of the iPhone 4S in its first weekend on the market. Samsung sold 3 million units of the Galaxy S II after 55 days on the market. So, when measured against these flagship smash hits, it’s hard to call the Note a mega-success. The galaxy note lowest price was $249.99 amp; the average price was $274.99 , While the highest price it reached was $529.99 . Elasticity of Demand amp; Cross Elasticity Elasticity of demand: Qd1 = 2,500,000 Qd2 = 7,000,000 P1 = #599 P2 = #299 % Qd = Q2 – Q1 / Q2 + Q1 /2 = 7,000,000 – 2,500,000 / 9,500,000 / 2 = 0.947 % P = P2 – P1 / P2 = P1 / 2 = 299 – 599 / 898 / 2 = 0.668 Ed = % Qd / % P = 0.947 / 0.668 = 1.417 * Product is elastic as the Ed is greater than 1 . Cross ElasticityShow MoreRelatedApple Inc. : The Smart Phone Market1415 Words   |  6 PagesApple Inc. entered the smart phone market in 2007 with the launch of a basic 4GB and 8GB iPhone. Since that time, the iPhone has revolutionized the smart phone market and redefined the idea of meeting consumer demands. Apple has been introduced a new model of its successful iPhone each year and consistently achieves higher market share than its competition. This essay examines the Apple iPhone from an economic perspective. 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