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

Microeconomics Article Summary Assignment - Essay Example forward to the fall in share price were speculations by three stock exchange experts that offered lower values for the companys prices. Further speculations noted that the solidification prices for the newly flinged handsets were not as low as Apple claimed, with concerns that such a price level could not attract customers into purchasing the overlap. iPh one(a) 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 article is claim of dishonesty against Apple as critics noted that while 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. China is one of the major markets for Apple but the high price that equals Chinese monthly average salaries may limit the company and its pro ducts popularity in the country. Existence of other major competitors, such as Samsung, in the Chinese market is another threat 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 use up in the United Kingdom because no companies offered contracts. Besides inability to capture new markets, Apple has lost market control to Samsung. Apple has also reported trim down profit margin in its second quarter though its share price has been fluctuating. The major concern to the companys trends, as the author reports, is its inability or lack of desire to offer affordable products to its customers (Woollaston 1). Relationship between the article and level 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 specula tions by brokers and investors perception of Apples pricing strategy and potential market control. These factors relate to the course concepts of lease 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 trade goods 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 offering 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 and supplementary products, peoples income, competition, and expectations dictates de mand 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 drop-off 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. otherwise factors to demand, based on the course concepts, are also applicable to the article and people