By Jennifer Gohlke
With all the
new technology emerging around the world, the population is constantly left
wondering what the newest advancement will be when it comes to cell phones,
tv’s or computers. One of the leading brands in this search for improvements is
Apple. This company is always on the top, creating the latest, most innovative devices.
Their ridiculously popular iPhone is Apple’s largest source of revenue,
accounting for 53% of their earnings according to The Economist. Although
sometimes consumers believe their “needs” form plans for the innovative
devices, the way Apple continuously produces phones each year creates a sense
of need for the consumers, in a way where once one iPhone is bought, the next
invention must be purchased instinctively as a replacement.
The first
iPhone was released in 2007, and since that time, Apple has gained $150 billion
in revenue from their phone line alone. The way they create a newer version of
the iPhone each year builds a sense of need within the consumers. This supply
and demand is what brings Apple the big bucks; they create the supply, and as
they watch the frenzy of customers line up for their new technology, they dream
up the latest and most innovative ideas for the new iPhone, that will be
released in the next year. The excitement of leaks and sneak peeks into
whatever iPhone is developing at the time only reinforce the demand among
consumers. This creates an even bigger supply, which is why the iPhone has been
the “world’s bestselling smartphone for five consecutive years” according to
The Economist.
Apple has
discovered a technique to keep the customers involved and interested; the
limited, yet exciting new options make decisions regarding iPhones simple and
effortless. For many users, buying the most recent iPhone is instinct and
simply just an upgrade to the next best thing. According to Time.com, customers
say that they like having choices, but when it comes to technology, only one
option makes the purchasing process much easier. People naturally want the best
of anything that they can get their hands on, and this deluxe phone is not any
exception.
The company represents
the social aspects of our country as well as our mixed economy. Recently,
according to Business Insider, it’s been said that the government will gain some
control over parts of the Apple company, mostly regarding security. A patent
from Apple would allow our government to have the power to cause black outs
around certain areas, in the situation of a protest, concert, or other time
when information should not be spread. However, the United States also has
characteristics of a free market, in the way that Apple and individual
companies can produce any kind of product. They benefit from this because they
can create and almost manipulate the thoughts of consumers, drawing them in to
a never ending “need” for the newest technology.
Apple is
only one of the many companies that has mastered the ways of the economy. Their
creation of need among consumers has helped them become the most successful
electronic company in the world.
Bibliography
"Apple
may need an iPhone 6 sooner rather than later | Apple - CNET News." Technology
News - CNET News. N.p., n.d. Web. 18 Sept. 2013.
<http://news.cnet.com/8301-13579_3-57523913-37/apple-may-need-an-iphone-6-sooner-rather-than-later/>.
"Apple
Patent Allows Government To Control Phones - Business Insider." Business
Insider. N.p., n.d. Web. 18 Sept. 2013.
<http://www.businessinsider.com/apple-patent-government-control-phones-2012-10>.
"Daily
chart: Mega phone | The Economist." The Economist - World News,
Politics, Economics, Business & Finance. N.p., n.d. Web. 18 Sept. 2013.
<http://www.economist.com/blogs/graphicdetail/2012/09/daily-chart-6>.
"6 Unfair Market Advantages You Should Steal from Apple
| Copyblogger." Content Marketing Tools and Training | Copyblogger.
N.p., n.d. Web. 18 Sept. 2013.
<http://www.copyblogger.com/apple-market-advantages/>.
what i learned from this blog is that apple consumers are hypnotized by apple into upgrading their products with the belief that the new one is superior when in reality its barely changed and just a profit scheme. while this is wise for apple i find it strange that so many people fall for the scheme and constantly upgrade.
ReplyDeleteI totally agree with you. Up until the latest iOS (iOS 7) all iPhone's have basically looked and acted exactly the same, sure there have been some minor upgrades like a bigger screen or 4G capabilities but when compared to the growth Android has shown Apple is really falling behind. In spite of this fact Apple has recruited almost a cult following of people, you called them hypnotized, that will buy anything with an Apple on it regardless about the quality and price. As much as I dislike Apple you do have to give them some credit for becoming this popular and by the way it looks as long as Apple keeps making supply there will always be demand.
DeleteI really like that you chose this for your blog topic because it relates directly to my life. I completely agree with the fact that people think that they need the newest iPhone and that by releasing a new phone each year, they create more and more hype over it. Reading about the part with the government getting some control is kind of scary because I don’t think the government should have that much control in our daily lives.
ReplyDeleteThis article really informed me a lot about what Apple does. Many people in our school -- including teachers-- trot around with their iphones by their sides. Every year Apple does the smartest thing a phone company can do: come out with a new phone. This increases the demand for the product, and therefore they make more money. However when I read about possible blackouts run by the government it seems that it would be unfair. Overall Apple really has become the economy, and it's great to see business booming.
ReplyDeleteFirst off, I think you bring up a really good topic about economics: Apple products. In general, people always have the desire to get the latest innovations. Since numerous people want these products, it creates supply and demand, like you said. This supply demand positively creates the desire for the Apple company to constantly come up with the newest and latest innovations to make new iPhones. Lastly, I thought it was interesting that the government can have controll over certain situations with the iPhone. I think this ruling might create controversy later on between the government and people.
ReplyDeleteThis is such a relatable topic that I think almost everyone is interested in. Apple truly has come to define itself and set its standards much higher than any other electronic company in the world. You are right when you say that Apple manipulates consumers into believing that they have the best products by staying modern and up to date. They know exactly what consumers are looking for in technology and then produce something that exceeds our expectations; this is why they are so successful. Its software combined with is look equals a big profit. I know that I am one to fall into the belief that Apple has the latest and greatest technology based on how popular it has become. Its popularity has really helped this company grow tremendously. I also found it interesting that the government could have control over Apple like that; I fear that if this happens, then it might decrease that consumption of their products because people wont want that kind of control over their own technology. Overall, this was a good topic of conversation that I think everyone has an opinion and understanding about.
ReplyDeleteThis was a great post that really helped me understand the concept that Apple does not only sell electronics, but they contribute to our economy greatly. I do agree that the Apple company may in fact abuse their consumers and their desire to have the latest technology, but I wouldn't necessarily single out Apple as the only company. Every other company is also trying to manipulate their consumers for their own self-interest because they just was to prosper and not become a failure in our difficult economy.
ReplyDeleteI think that this was a great article to write because it is pertinent to the current economy in that Apple has just released a software update and the newest iPhone. It is interesting to observe and analyze the monopoly they have on the cell phone market compared to Android and other companies. Even though we should be cautious of their power and realize the absurdity of our technological obsession, it is important to recognize the great skills of Apple and their ability to dominate the economy for so many years. Although they play directly on American consumerism and feed the beast, so to speak, they also create great revenue and economic stimulus for our country. We must remember the jobs they are creating and the role they are playing in the continuous flow of our economy. I found your mention of the possibility of government control very interesting. Considering the history of monopolies in the American economy, at some point the government steps in to regulate and equalize. How long will it be before the government works to stop this growing monopoly and how will they do so when the majority of Americans are avid Apple supporters?
ReplyDeleteThis is a great topic to write about. It is very relevant to this exact time and just in time for the release of the iPhone 5C and 5S. It doesn't surprise me that the government is trying to get involved and take some responsibility over the company. It seems like, even at PHS, the majority of students are Apple users. The government is bound the get involved with something that affects the majority of Americans. This also touches on the idea of privacy. The debate on individual privacy seems controversial, and government involvment in the sales of Apple products seems to contribute. How much will the government control? Will it start as just governmental monitoring of media regarding protests, concerts and the like, but eventually build to even more control? I'm curious to see where Apple's success will take them. Great topic Jen! And very well written.
ReplyDeletePlease set you your first and last name with your blogger profile so you can get credit for your comments.
DeleteI've been thinking for awhile that most people who has an iPhone is basically a slave to apple and this just strengthens my standing. While I knew that Apple was an extremely well off company, I had no idea just how much profit they make, and that's purely with their iPhone sales. I think Apple has such a successful business not because more and more people know about it every day and it's gaining popularity, but because they've hit their peak of being known and they're going to stay there with a steady stream of sales. It's hard to believe that just a decade ago they were worth just 2% of what they're worth today.
ReplyDeleteThis is crazy and I have always wanted an I phone because well, everyone has one and they were made up to be these amazing high tech phones. But once I got one it wasn't as cool as it seemed and I only wanted the next one up and the next one. I have the 4, but wanted the 4s because of siri, the only difference between our phones is a person answering our questions, and then when the 5 came out I wanted to upgrade to that one. You are totally right when you say they create a great need for the product by continuesly thinking of something new. Such as just recently coming out with the iOs7, something we were being told about 2 months before it came out just made people want it more and be so excited for this awesome update. Crazy to think such a phone can control the want and needs in the US.
ReplyDeleteSo basically everybody knows that they already have plans for the iPhone 10. lol. Apple purposely keeps something out of the new one to have something big and new for the next one. The confusing part to me is that while the iPhone 5S is the next big iPhone but the 5C is coming out at the same time as the 5S. The confusing part to me is that Apple is a very successful company because of the improvements and newest thing they have each year but why are they releasing the 5S and 5C at the same time? Economically, wouldn't they want to have 5C/5S, then 6 months later 5S/5C, then 6 more months the 6? People do go out and buy the newest iPhone just so they have the next best Apple product and would most likely purchase the 5C and then the 5S or whichever order. I think people are going to want a combination of the 5S and 5C so by releasing the 5C first, people will buy it and then having the 5S with color would be the best decision, economically, for Apple.
ReplyDeleteAfter reading the article and watching the video, I realized that Apple really has mastered the art of manipulating its consumers into buying the newest and latest products. I personally do not have an iPhone and have never really had the desire to switch from my android over, but their advertisements and creation of wants and needs kind of makes me want their latest product. Obviously they do this for a purpose, so they can draw in as many consumers as possible and make more money. I find it strange and kind of frightening how much power companies can have over the consumers; what are they going to draw us into next?
ReplyDeleteI really like that you chose this topic because you are able to relate it to many peoples lives, including mine. It's interesting to see that people are always wanting the "newest/coolest" things, this being the iPhone's. Every year or so, they are coming up with newer models of the iPhone's which gets everyone excited and want one. Watching the video really got me thinking that the Apple company are the ones who are advancing our technology and trying to come up with bigger and better things, and they're mastering it. I really enjoy the iPhone because I believe it's better hardware than an Andriod, meaning it doesn't freeze or "spazz" out when you use it. I have had the privilege to have owned an Andriod and an iPhone, and personally I would much rather prefer the iPhone over it because of the advantages it has. Concluding, I believe that every year we will advance more and more with technology and will become more of a part of our everyday lives, but I believe that the government should back off and not have so much control in everyone's everyday lives.
ReplyDeleteSo many individuals are always drawn into this mental thought of wanting the next thing. Apple is a really good example of this and excited to see this topic discussed! It amazes me how one company can become such a huge role in our economy. Without apple, who knows where our economy would be today? I am sure that might be a little of an overstatement, but Apple has made a foundation of automatic ethos. They are permanently considered a well known product, which is why so many people are Apple product consumers. It crazy to think how several individuals, strive to find the next new thing when it comes to gadgets. I feel as though it’s just something exciting to experience personally, but in reality the phone may only have a minor upgrade at most. Consumers just love to feeling of getting something that is “newer,” and as long as Apple keeps making simple upgrades to their phones, the flow of consumers will keep returning.
ReplyDeleteI think that it's actually really smart of them to use this technique. Not only are they happy with the results, but so are we. Our generation strives to have the best of the best and Apple certainly has it. They keep making money off of it but no one complaining. Why? Because we like innovation and new and improved technology. They know how to keep the balance just right. You don't see them releasing anew phone every three months or every three years. They've got it just right because they know that people get tired of their phones after about a year and they want to replace it. What better way to replace it than with one of their new products?
ReplyDeleteI have to get one thing striaght, Apple has been leading smartphone markets ever since the debut of their first Iphone back in 2007. It was a revolutionary product for it's time and the world had never seen anything like it. Fast forward all the way to 2013 and it seems Apple has a big problem on their hands. If you look at the numbers alone that Apple has been reporting in, it doesn't look like the company is going to go bankrupt any time soon, but when Apple released their Iphone 5C worldwide, their shares had fell 5%. Now, that may not seem like a lot but for a company that has such a strong history in profits and growth, when they release a new products, shares should typically rise. The fall took many economists by surprise. I do not understand why so many people around the world are just replacing their Iphone products every year. Apple products are known for their quality and reliability but they are also expensive, and when you compare Apple's products to their main competitors like Samsung and HTC, you might wonder if you really are getting your money's worth, if the marginal benefit is really greater than the marginal cost.
ReplyDeleteApple was a perfect thing to focus on involving econ. Especially because of the new phone that was released today. Apple biggest competition is Android yet Apple in the end iPhones are still on top and are the “world’s best selling smart phones.” Technology is a big part of our world today, schools installing computer into our curriculum and more smart phones every day, but at the same time I believe it is causing more people to start to get lazy. Apple has been very successful throughout economy, they are very good at catching our eyes to make us want the phone even like you said showing leaks and sneak peaks of the new phones. Government will be stepping in more control is very interesting. I wonder in what ways, would they want to stop the growing monopoly of iPhones
ReplyDeleteAfter reading this, I am now more aware of the fact that Apple manipulates its intended audiences into buying more and more of their products. It just amazes me how people are constantly getting new phones and striving for the best of the best. But if you think about it, this is probably stimulating our economy in many ways. Apple is making lots of money off of the Iphone, and is returning the favor by releasing new updates whenever possible. I think that this creates equilibrium and benefits the economy.
ReplyDeleteApple is great example on economy. The reason why is because apple was a self made company that knows how to manipulate the people that are interested in their products. By doing this when apple comes out with new designs or maybe a small change to the technology people go crazy and its a must have for them. That is why apple makes so much in money and is one of the best business around the world.
ReplyDeleteJen-
ReplyDeleteI completely agree that Apple has mastered the economy. It is almost pathetic at how technology hungry societies are these days. Apple has dominated the entire technology world by coming out with the newest, fastest, most consumer friendly products; allowing them to control the economy. Apple will continue to dominate the economic world if they succeed at fulfilling the wants of their consumers.
The fact that the iPhone is 53 percent of apple's revenue is not surprising. When I walk around school everyday, I see kids with an iPhone out. In fact, most of my friends have an iPhone. And the fact they make so much in profit is not surprising either because the iPhone/iPod/iPad are some of the most wanted items out in the market. Everyone who doesn't have one, wants one and everyone who has one, wants the newest one.
ReplyDeleteWants and needs are two different things and sometimes the wants take over more than what is really necessary and this blog post helps to show that. People are always going to want to have the latest and greatest gadget and device. And these wants help to spur the economy and keep companies making new things to keep people interested in the products they make and the brand they represent. Such as with Apple that is discussed in this post. Consumers are going to keep buying the new products and upgrading because Apple helps to keep them engaged. If something isn’t deemed interesting no one is going to buy it. If no one buys it the company goes down. And if the company goes down then it could potentially hurt the overall economy and the people in it. And so with the want turning into a never ending ‘need’, as it was put, Apple benefits from us helping to continue pushing the economy and drawing the consumer in and making a profit off of everyone's 'needs.'
ReplyDeleteClearly, Apple has gotten the majority of the world in the power of their hands when it comes to their products, most definitely the iPhone. By making good choices through timing, advertisement, and high prices, from the very start in 2007, Apple has won the world over. Compared to the Samsung Galaxy, both show more similarities than differences, but Apple still flourishes. Through the company’s wise decision making and invention, clearly it takes timing and smart ideas to make a business successful. Though new and upcoming iPhones show very little difference from the older ones, Apple has hooked everyone into unnecessarily spending $800 per year.
ReplyDeleteThis is a great topic that has been strongly debated over the past 6 years. Apple has been rising in the ranks and is the one of the top phone consumer capitals. It is important to know how the knowledge we use every day is made and research the specific type and use of technology to know whether we are being taken advantage of or not. Apple is not the only leading competitor it is singled out with android and apple as the top 2. I agree that they do manipulate the costumer with the newest technology and the newest phone. Only yesterday Apple released the new software IOS 7. this software was supposed to take them above and beyond Android and all other markets yet it did not sky rocket as they hoped. When we have two competitors in the same market, trying to create the new best thing they tend to mimic one another and in doing so tweak their own innovation to make it look better. Apple does manipulate its customers with the up to date software and the new phone every year. We are sucked in by the next best thing and need to have it, or so it seems. The government has been gaining control of many phone companies and electronic companies for security and we need to know this and understand this before we buy their products to know the risk we are taking.
ReplyDeleteThis is a wonderful topic to discuss in economics. With a society we live in today it's always important to have the next best thing with technology. Apple is doing a great job providing that. There's nothing better they could do than create a new phone ever year because the majority of people want a new phone. A lot of phone companies usually will update their phone every few years. It's important to come out with a new phone quite often so the apple market is making money and the people buying the phones are satisfied. Every year Apple's products significantly improve and make millions. I have the iPhone 4s and I love it. I couldn't imagine having an android or any other kind of phone. Not only are the creators of this product benefiting from the iPhone but the government and the buyers are as well. I personally don't see an opportunity cost with the iPhone. This is a very resourceful phone for the economy.
ReplyDeleteJessica, please add your last name to make sure you get credit for your comments.
DeleteThis is a great article that is also very prominent right now. The IPhone 5s just got released along with IOS7. It is incredible the way that Apple is always ahead of the other phone companies with faster and better products. It is true that in our economy the mindset of everyone is that they have to have the next best thing, and for Apple this is a perfect mindset for their customers who are greedy and eager to get the next best phone that comes out. Great article that just so happens to be very timely.
ReplyDelete- David Heinen
Nice post Jennifer, considering how relevant it is with the release of the 5s. The only thing I have to say is that it seemed like you became a bit caught up in the supply and demand side of the article. An example being stating the demand for the product directly leads to an increase in supply, while on the contrary, with high demand and limited supply, the company would take advantage of this and charge whatever they please. Overall, your post did a very good job in covering how a common product travels through our free market style economy.
ReplyDeleteIt is really amazing that apple can stay on top with all of competition out there. That fact is the iPhone is not that much better than the htc or Samsung smart phones but the demand of the iPhone is so much more. It will surely be interesting to see how apple does without Steve Jobs. Will the Apple keep making revolutionary products or will they fall down to only making small changes like color like they did with the iPhone 5c. Good thing we only have to wait 5 more months to see if this was just "weak" idea or if the company lost its edge
ReplyDeleteApple is constantly on top of their game when it comes to having the best technology out there. They are constantly updating there software or coming out with new software, like the iPhone 5, to be ahead of everybody. In today's world, where in order to be the best you have to have the newest and best things, they are manipulating people into buying their products. That's why the fact that the iPhone is 53% of there revenue doesn't surprise me at all, everyone has one! Overall this was a good article was very relevant with today's economy.
ReplyDeleteApple is constantly growing and improving their products to make them the best product on the market with the increasing use of technology day by day, and there is nothing wrong with that in my opinion. Apple is giving us a whole new outlook on what technology on our phones are capable of and they are continually trying to make their costumers happy with what they are coming out with, which makes them bring in more profit because everyone wants to keep up with the newest technology. What I don't understand is why Apple would allow the government to have access into their users privacy. I think there needs to be a line drawn between when the government is getting too involved just because they can. It's scary to know that some people keep all of their information in tees devices and the government can have access to it at any point in time. Personally I love how apple likes to keep their customers happy by always giving us updates (such as the iOS7) to keep us around. I've had my iPhone for 2 years now and would never go back to any other smart phone. Apple is definitely doing something right.
ReplyDeleteIt is very clear that Apple has mastered our economy, as they manage to always be on top of all competition. I think that one of the keys to Apple's success is its constant improvement. Compared to all of its competitors, Apple comes out with new phones or software at a much quicker rate. This largely increases their sales, because even if you own an Apple product that you are completely satisfied with, often times you end up buying the newer model just to stay up to date. For example I have an iPhone 4s, but as soon as the iPhone 5 came out I have had a desire to get it, even though it is almost the same thing as the 4s. The pressure that Apple puts on their customers to purchase the best and newest product available is amazing, and it is why Apple is able to continually overpower all of its competition and dominate the economy.
ReplyDelete-Brad Nagel
With apple products constantly being released, it is really interesting to see how it is becoming a huge part of our economy. People can easily feel the pressure to download the new software and buy the latest phones. However, apple does an amazing job staying modern and always having new and interesting products. This is probably why people feel the need to always go out and get the latest product from apple.
ReplyDeleteIt is not that surprising that Apple has made the best series of smartphones. When people first bought the first iPhone some people said it will not sell and was a terrible product. But now in 2013 the iPhone is one of the most popular smartphones on the market. So Apple will continue editing their product with small adjustment or new features making people need the new update or want to get the next update. That is basically how most businesses make money is to add features to surpass their previous product,
ReplyDeleteThis topic is relatable to most teenagers. The apple products are one of the most popular technology in our current generation. The galaxy phone is in competition with apple constantly trying to one up them. Apple continues to make upgrades for the phones and the more the people want it. People want the new Iphone 5s and 5c the more scarce the product will be. People will spend more money on the upgraded phone. Apple will continue editing the products with new features and adjustments to make people want the upgraded product which is how Apple make money.
ReplyDeleteI have always thought that apple is basically just taking the first generation iPhone and changing the shape and color of it. The first generation iPhone was capable of just as much as the new 5c. Its just a different name and shape. The galaxy phone line is just as good if not better. Just apple has made a bigger name for themselves with all the strange things they have made in the past couple of years. The price of apple products always goes up because people thing its going to be the new thing and its going to be amazing, making that item a scarce item.
ReplyDeleteI think it's crazy how apple has there costumers just totally sucked into their product. No matter what they put out people will still go crazy over it, its so mainstream. They can literally put out the iphone 3 again and just say its the iphone 6 and millions will still buy it. But, I have to tip my hat to Steve Jobs (rip) and Apple because they took over marketing business and is hands down the number 1 phone company, and electronic company.
ReplyDelete