Chapter 2 Supply & Demand

http://www.edn.com/article/509611-iPhone_4_supply_and_demand_issues_could_hurt_Apple_brand.php

Summary
                It seems that the supply and demands for iPhone 4 is substantially increasing everyday. Accoring to the reports from a company called "iSuppli", predicted that Apple will have issues with supply and demands and it could come back to bite them. Obviously, if this issue occurs than consumers will just go buy other smart-phones instead.
                Apple recorded 600,000 units for the iPhone 4 on the first day of pre-odering.They literally had to stop the pre-orders after just one day. What's even more frustrating is that, Apple has kept pushing back the release date and causing more aggravation towards consumers. Consumers are questioning Apples supply-chain management capability, have begun to leaned towards substitute products (nokia, blackberry, etc). Probably the reason why Apple has been pushing back the date was because they attempted to fix the antenna issue which, causes poor receptions and dropped calls.
                iSuppli stated that Apple will ship approximately 21.7 million iPhone 4s in 2010 which is... a lot. As of today the iPhone is in rank third in smart-phone player, ranking barely below Nokia and Blackberry. iSuppli also noted that, "With threats coming from every corner of the market, Can Apple afford another slip in its supply chain management?"

Connection
                This article relates to what we have discussed about supply and demands. In order for Apple to stay in the competition they need to focus more on consumer needs. If they don't change this behaviour then eventually Nokia and Blackberry will take over the smart-phone competition. I'm sure Apple has no problems producing more iPhones but they're sure smart to make 21.7 million iPhone 4s. Other countries are also demanding for this product as well, in fact there are so many demands, I don't think Apple can keep up.
                It's definitely a consumer behaviour problem and tastes / preferences. However, there are substitute products (again, other smart-phones such as Blackberry and Nokia) but thing is, I personally think Apple "does not care". If Apple does not comply to the demands, they will have to think of a proper solution. I do understand that there are many choices they can do but it may be risk-taking, do they want to increase prices on iPhones or should they produce even more iPhone 4s?

Reflection
                First, the factors in this case are definitely taste and preferences and substitute products. Can Apple attend to consumer behaviour needs? Probably the main reason why is because they don't want to waste so much production cost. Can or cannot meet the demands? I'm positive Apple can meet the demands but again, there is just too much competition out there.
                In my opinion, I think the best solution would be to increase the prices on iPhone 4s. Although I think Apple is not willing to take that risk because they're afraid of losing profit. However, the consumers who need it badly can pay to get it (first come first serve). But, for those who can't afford the price increase will probably have to wait until the price drops.