Supply and Demand

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Supply and demand can reflect the ebb and flow of a product’s popularity as well as the cyclical nature of its economic impact overall.  One notable example of this phenomenon in action is the Apple iPhone.  Essentially, the projected growth in popularity of this product, in conjunction with the success of its previous sales, would effectively lay the groundwork for an adequate supply of iPhones to be available to satisfy customer demands.  However, this strategy can backfire if sales fall short of the anticipated demand (which has happened) or, conversely, if demand exceeds the produced products on hand.  Seitz (2017) presented the fact that the latest model for this phone was strong upon its initial inception (para. 1), whereas O’Hara (2018) painted a less optimistic picture for this scenario given the increasing demand for the newer form of this model due to factors such as pricing, marketing, appearance, and enhanced functionalities (para. 2).  

To be sure, investors had a solid stake in this product given its reputation and previous track record for sales; Niu (2018) observed that pre-orders for the latest model were selling at a brisk pace, and store inventories were selling out on the official product’s launch day (para. 3). These examples illustrate the principles of supply and demand in action, as a rise in demand for a product would subsequently lead to a corresponding need to build supplies to match it accordingly.  This notion is echoed by Jones (2017) who states that “Apple’s financial results and to a large degree its stock price is dependent on how well iPhones sell…Apple’s stock had been slightly underperforming the markets over the past few weeks but as of this morning made an all-time high as has the Dow Industrials, S&P 500 and the NASDAQ” (para. 4).  Thus, the fluctuations present in sales for this product present a clear example of how supply and demand can function in a real-world context, and how such principles may influence production or reduction of a given item as needed based on these results and numbers.


Jones, C. (2017). iPhone X supply catching up to demand. Retrieved from

Niu, E. (2018). Demand for Apple's new $1,100 phone appears strong -- The Motley Fool. Retrieved from

O'Hara, A. (2018). Another Apple supplier slashes revenue forecast, prompts speculation of weak iPhone demand. Retrieved from

Seitz, P. (2017). Apple iPhone X demand strong, but supply is a growing concern | Investor's Business Daily. Retrieved from