The iPhone Xtreme
By Alyssa Tomfohrde
On November 3rd of 2017, the iPhone X was released all over the world. This was the tenth anniversary of the Apple’s iPhone, and with the brand new design and face recognition feature, there was a lot of craze about this new item. People all around the world were excited for the launch because it was supposedly new and improved from the past phones. Since there were so many people excited for the item, it was in high demand. Knowing this would happen Apple thought they were prepared, but ended up having a shortage of supply, since they sold out within minutes of the launch due to the earlier available pre-order that many people took advantage of, which broke a record for pre-sales the day before the release. Though, this isn’t some small purchase at all. The phone itself costs $999 USD which you could round up to say that it costs $1,000. For some who are in the lower and middle classes who cannot afford to drop $1,000 out of nowhere, they have to weigh the pros and cons. If the marginal cost of the phone equals the marginal benefit for a certain individual, it would make sense that they would buy the phone. If the features seem exemplary and worth it for the cost, then it is worth the buy. With this big expense, there are many opportunity costs of the other things that money could go towards. The money could go towards groceries for the week, the electric bill, water bill, gas money, even could be used for their current phone bill, though these people bought the iPhone. The substantial amount of sales made the profits of Apple reach a new growth of 19%. Because of the new and advanced technology, this rose the GDP of the country because of the production of the good.
From Black Friday to Cyber Monday, U.S. Cellular was having a deal for iPhone 8’s and iPhone 8 Plus’s where the 8 was free if you turned in an old phone in good condition and obtained unlimited data, as was the same for the iPhone 8 Plus, though instead of being free, it was installment price of $3.30 per month. Though, there was no deal present for the brand new iPhone X. Since the iPhone X is so new and more popular, it is an inelastic good whereas the 8 and 8 Plus were more elastic goods since they aren’t in as high of a demand as the iPhone X was. Therefore, the iPhone X has caused an extreme change in the economy.
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