Iphone 6

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EQUILIBRIUM POINT

Market are not always stable. As we discussed earlier, the selling price may depends on other factors, such as the cost of transportation and promotion. In fact, we might easily expect the selling price to fluctuate year-to-year. However, regardless of these fluctuation, there will be an approximate price - the ‘equilibrium point ’ which shows a equilibrium price. At this equilibrium price, the quantity of goods that buyers are willing and able to purchase coincides with the quantity that sellers are willing and able to sell. This means that the equilibrium price is the optimum selling price for iPhone 6. In other to obtain this figure, we introduce a pair of simultaneous equations to solve it and then we have:

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The answer above represents the optimum selling price is £590.91 and the number of units sold is 12.73 million which is lower than the sales target of 20 million units.

REVENUE

If we consider that the figure above were correct, then we can calculate how much revenue Apple could make by using the following equation:

Revenue = The number of units sold × The selling price

= £590.91 × 12.73 million

= £7.52 billion

To accomplish the goal

Because iPhone 6 just released in September, we could not find the specific data of the number of units sold. Nevertheless, from the independent research, we found that the real selling price is £539 for iPhone 6(16GB); figures from the website of Apple, 23nd October 2014, accessed online:

http://store.apple.com/uk/buy-iphone/iphone6/4.7-inch-display-16gb-space-grey-unlocked

In accordance with the figure of £539, we can easily find the our calculated selling price is higher than the real one which may mean Apple want to sell more product to hit their sales goal by using the lower price. From another independent research, we found that Apple used several ways to promote iPhone 6, such as the advertisement which uploaded on YouTube; sources from the website of YouTube, 23nd October 2014, accessed online:

http://www.youtube.com/watch?v=PbmT4AyOOZw