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Apple, in the past, has been notorious for setting high prices for its products. Its beautiful, expensive products were, however, sought after by many, yet with it's new product, the iPad mini, Apple is starting to make products that are not only highly-desirable, but at the same time, less-expensive. Apple products are price elastic because it is not a necessity and there are a myriad of substitutes. Apple is well aware of this information, and as a result, is lowering its prices to take advantage of price elasticity and the law of demand. As the title states, "Its all about price elasticity" and the iPad mini, with its reduced price will be competitive in the tablet market.

The increase demand for iPhone 5 causes the Apple shares to close at almost $700. The firm receives two million pre-orders. Most iPhones will be delivered to stores later this week, but some orders may be delayed. An estimate of up to 50-60 million iPhones could be sold by the end of the year. However, the soaring demand causes concerns for the firm, as they may not be enough products to meet the consumers' demands. This could potentially delay the delivery of the products. I chose this article, because I think it relates a lot to the idea of scarcity. Though it may not be the biggest concern that could affect people's lives tremendously (not as much of a concern as problems like shortage of food or water), but it tells us that mass resources can become scarce very easily as a result of high demand for it. This can easily connect to the fundamental concept of economics. That is supply and demand. As a result of high demand for the products, the quantity that can be supplied by the market may not satisfy the consumers' demand. This is also an example of human 'wants.' Most people don't need an iPhone, but because of their 'wants,' they want to get one for themselves. You can see that human wants are infinite and that resources are finite that will eventually become scarce. This could potentially add value to the iPhone 5 if the products become scarce. Bibliography "Economics Basics: Supply and Demand." Investopedia - Educating the World about Finance. N.p., n.d. Web. 18 Sept. 2012. .

Samsung and Apple are the most popular companies producing highly desired products, but it seems that Samsung has took the lead. The cross elasticity value of each respective smartphone is high and positive, making them close substitutes for one another. With the high cross elasticity value, the sales for each product is sensitive to one another, making the market fierce.

This article is very interesting, Andy. I find it amazing how blackberry has almost completely dropped off the face of this planet! Its all about samsung and apple now. Since the Iphone 5 came out, I am guessing that the demand for Samsung phones has dropped!

It is no surprise that Apple products are in high demand, and the new iPhone 5 is no exception. Demand is defined as the willingness and ability of a consumer to purchase a product. The demand curve is also sloped downwards, opposite that of a supply graph. However, in the case of Apple, the demand curve does not follow the norm. The New iPhone 5 reached a pre order sale of 2 million in the first 24 hours, while the iPhone 4S reached one million. The demand has gotten higher, yet the price has risen from $179 to $199. The course companion states that demand increases as a result of a price fall and the graph shifts to the right with an income increase, yet the iPhone manages to be not only the best selling iPhone, but the most expensive. I think the size of the population and the change in the age structure played a big role in the massive pre-order sales. The whole population did not necessarily increase, yet the population of smartphone users has increased. It was exciting and interesting to see how these regular news articles relate to what we have learned throughout the week.

I think we will see the change of the market of smartphone through the windows phone is about to start to pre-order. Windows phone is one of the biggest competitors of Iphone over the world. In this case, the supply of the smartphone increases. And I believe the demand or price of iphone is going to chance because of it, after people consider about the oppotunity cost of either buying iphone or windows phone.

Yes I do agree with you that the "windows fones" are going to create a huge competition with the apple iphone and i think this is a positive aspect to the phone market because now the iphone will probably not dominate the phone market anymore and it's price will drop, making it more availible to people. Also this is a positive aspect that there is competition because it will lower the prices of telephones in generally making it more availible to everyone. Adding to the competotion aspect, it will force the to companys to finance their reserch even more, to try and beat their opposition, which will improve the technology of telephones of our day!