Subject of the paper: You are required to pick a product or service you use in your everyday life and describe the market for this product Requirement: Please make sure to address the following questions: What factors influence the demand for this product? What factors influence the supply of this product? How have these changes in supply and demand affected the equilibrium price of this product? Do you anticipate any changes to the demand and/or supply of this product in the near future? If so, what is driving these changes? Complete this essay in a Microsoft Word document in APA format. Please note that a minimum of 700 words for your essay is required. Need to include scholarly sources throughout the paper as well. Other information: Minimum 700 words, APA Format (except cover page and reference page). Format: APA Format No plagiarism is accepted

QUESTION

Subject of the paper: You are required to pick a product or service you use in your everyday life and describe the market for this product

Requirement: Please make sure to address the following questions:

1. What factors influence the demand for this product? What factors influence the supply of this product?
2. How have these changes in supply and demand affected the equilibrium price of this product?
3. Do you anticipate any changes to the demand and/or supply of this product in the near future? If so, what is driving these changes?

Complete this essay in a Microsoft Word document in APA format. Please note that a minimum of 700 words for your essay is required. Need to include scholarly sources throughout the paper as well.

Other information: Minimum 700 words, APA Format (except cover page and reference page).

Format:

• APA Format
• No plagiarism is accepted

• ANSWER

• The Market for Smartphones: A Comprehensive Analysis

  Smartphones have become an integral part of our everyday lives, transforming the way we communicate, access information, and engage with various services. This paper explores the market for smartphones, discussing the factors that influence both the demand and supply of these devices. Furthermore, it examines the impact of these factors on the equilibrium price of smartphones, as well as potential changes in demand and supply in the near future.

  Factors Influencing Demand for Smartphones

  The demand for smartphones is influenced by several factors that shape consumer preferences and behaviors. Firstly, technological advancements play a significant role. As new features and capabilities are introduced, such as improved camera quality, faster processors, and enhanced software functionalities, consumers are motivated to upgrade their devices to access the latest innovations.

  Secondly, the availability and affordability of smartphones impact demand. As prices decrease and more affordable options enter the market, a wider range of consumers can access smartphones, leading to increased demand. Additionally, the expansion of mobile network coverage and data plans also influences demand, as it enables individuals to use smartphones for various purposes, including internet browsing, social media, and streaming.

  Thirdly, consumer lifestyles and social factors contribute to smartphone demand. Smartphones have become more than just communication devices; they serve as multi-functional tools for work, entertainment, and social interactions (Min et al., 2012). The desire to stay connected, share experiences, and participate in the digital world drives demand for smartphones.

  Factors Influencing Supply of Smartphones

  The supply of smartphones is determined by several factors, including production capabilities, technological advancements, and availability of key resources. Firstly, the manufacturing capacity of smartphone companies influences supply. The ability to produce smartphones in large quantities and meet demand in a timely manner is crucial for market competitiveness.

  Secondly, the availability and cost of raw materials and components impact smartphone supply. Key components such as semiconductors, displays, and batteries have experienced fluctuations in availability and price due to various factors, including geopolitical issues, natural disasters, and supply chain disruptions. These factors can limit the supply of smartphones and affect market equilibrium.

  Thirdly, technological advancements and innovation in smartphone manufacturing influence supply. Manufacturers that invest in research and development, allowing them to introduce new and improved products, gain a competitive edge (Tecno, 2020). The pace of technological progress and the ability to integrate new features into smartphones impact supply dynamics.

  Impact on Equilibrium Price

  The interplay between demand and supply factors has a direct effect on the equilibrium price of smartphones. When demand outstrips supply, prices tend to increase due to limited availability and increased competition among consumers. Conversely, when supply exceeds demand, prices may decrease as manufacturers aim to clear excess inventory.

  In recent years, the equilibrium price of smartphones has experienced fluctuations. Technological advancements, coupled with fierce competition among manufacturers, have led to a diverse range of pricing strategies. Companies differentiate their products through features, branding, and targeted marketing, resulting in a wide price range across different smartphone models. Moreover, promotional activities, discounts, and trade-in programs can influence the final price paid by consumers.

  Anticipated Changes in Demand and Supply

  Looking ahead, several factors are expected to influence the demand and supply of smartphones. On the demand side, the adoption of 5G technology is likely to drive an increased demand for smartphones capable of utilizing this network’s higher speeds and lower latency. The ongoing integration of artificial intelligence (AI) and augmented reality (AR) technologies into smartphones may also stimulate demand as consumers seek enhanced user experiences.

  Additionally, changing consumer preferences regarding sustainability and ethical manufacturing practices could influence demand. Consumers may show a preference for smartphones with longer lifecycles, repairability, and reduced environmental impact, which may prompt manufacturers to adapt their supply chains and production processes.

  On the supply side, challenges in the global supply chain, such as disruptions caused by natural disasters, political tensions, or global health crises, may impact the availability of smartphones (Attinasi, 2022). Fluctuations in the cost and availability of key components, such as semiconductors, could affect supply and potentially lead to price increases.

  Conclusion

  The market for smartphones is influenced by a complex interplay of factors that shape both demand and supply. Technological advancements, affordability, consumer preferences, and social factors drive demand, while manufacturing capacity, resource availability, and innovation determine supply. The equilibrium price of smartphones is subject to constant change due to fluctuations in supply and demand dynamics. Looking forward, the adoption of 5G, the integration of AI and AR technologies, and evolving consumer preferences are expected to shape the future demand for smartphones. Meanwhile, challenges in the global supply chain and availability of key components may impact supply dynamics.

  References

  Attinasi, M. G. (2022, January 13). Supply chain disruptions and the effects on the global economy. European Central Bank. https://www.ecb.europa.eu/pub/economic-bulletin/focus/2022/html/ecb.ebbox202108_01~e8ceebe51f.en.html 

  Min, C. M., Hong, C. L., Ai, Y. J., & Wah, W. P. (2012). Conceptual Paper: Factors Affecting the Demand of Smartphone among Young Adult. International Journal on Social Sceince, Economics and Art, 2(2), 44–49. https://doi.org/10.35335/ijosea.v2i2.200 

  Tecno. (2020, April 9). Smartphone innovation in the third decade of the 21st century. MIT Technology Review. https://www.technologyreview.com/2020/03/05/905500/smartphone-innovation-in-the-third-decade-of-the-21st-century/