Microeconomics Article Summary Assignment Essay Example | Topics and Well Written Essays - 750 words

Microeconomics Article Summary grant - Essay ExamplePrior to the fall in cover price were speculations by three investment trust exchange experts that offered lower values for the communitys prices. Further speculations noted that the set prices for the newly launched handsets were not as low as orchard apple tree claimed, with concerns that such a price level could not rend customers into purchasing the merchandise. iPhone 5S and iPhone 5C were the launched products that yielded the change in stock prices and the company was to stop sales of its previous model of iPhone 5 (Woollaston 1). Another major aspect of the member is claim of dishonesty against orchard apple tree as critics noted that go the company presented the product at a cheaper price of $ 99 value, the company did not disclose that this was a contract term with undisclosed monthly payment. importantland China is one of the major grocery stores for Apple but the soaring price that equals Chinese monthly avera ge salaries may limit the company and its products popularity in the country. Existence of other major competitors, such as Samsung, in the Chinese market is another terror to the new product launch and its price because they contributed to loss in market control in China to firms like Huawei, Lenovo, and Coopland. The new launch also failed to capture immediate interest in the United res publica because no companies offered contracts. Besides inability to capture new markets, Apple has lost market control to Samsung. Apple has also reported reduced profit margin in its second quarter though its make do price has been fluctuating. The major concern to the companys trends, as the author reports, is its inability or neglect of desire to offer affordable products to its customers (Woollaston 1). Relationship between the article and course concepts Key to the articles theme is the change in stock price of Apple following announcement of its new products, iPhone 5S and iPhone 5c and the main factor to the shift in stock prices is speculations by brokers and investors perception of Apples pricing dodging and potential market control. These factors relate to the course concepts of demand and supply with focus on demand for Apples stock. Demand is one of the factors that affect price and increase in demand, with other factors kept constant, leads to increase in a commoditys prices while decrease in demand identifies with fall in prices. This explains the fall in price of Apples shares following announcement of release of the new product and suggest that investors lost interest in the company. Claims by investors that the company is not keen on oblation competitive prices confirm this. Another major theme in the article that relates it to the course concepts of microeconomics is the demand for the companys products into its market control and its profitability. Microeconomic principles of demand provides that price of complementary color and supplementary produ cts, peoples income, competition, and expectations dictates demand of a commodity and the article identifies all these factors. Apples share is a complementary commodity to the companys product and this is evident as announcement of iPhone prices leads to reduction in share price. Prices of other phone models that are relatively cheaper have also led to un-competitiveness of Apple towards lost market control and poor profitability. Other factors to demand, based on the course concepts, are also applicable to the article and people