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“iPhone Demand Outstrips Supply in China”

“iPhone Demand Outstrips Supply in China”. Yuko Ohmori. Problem. <. iPhone. Situation. UNICOM vender like S oftbank and AU Sept. 2010: 200,000 demanded However , only 100,000 were supplied 2009 : 40,000 units were sold 200,000 > 40,000 iPhone is a hit in China. Graph.

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“iPhone Demand Outstrips Supply in China”

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  1. “iPhone Demand Outstrips Supply in China” Yuko Ohmori

  2. Problem < iPhone

  3. Situation • UNICOM • vender like Softbank and AU • Sept. 2010: 200,000 demanded • However, only 100,000 were supplied • 2009:40,000 units were sold • 200,000 > 40,000 • iPhone is a hit in China

  4. Graph

  5. Stakeholders

  6. Effects: UNICOM Winner • Only Chinese iPhone vender • Law of Demand • Opportunity to increase price for more profit • Sold all of its inventory • Get more from Apple Loser • 100,000 potential customers • Wait • Transfer to another smartphone

  7. Effects: Apple Similar to UNICOM Winner • iPhone was a hit in China • Additional market • Excessive Inventory • Diversion of iPhone shipment from other nations

  8. Diversion of Inventory 1,000,000 -50,000 +50,000 Apple HQ 100,000 Meats Demand 200,000 UNICOM +50,000 1,000,000 -50,000

  9. Effects: Other Smartphone Companies Winner • Potential customers • Buy other smartphones

  10. Shipment diversion analysis (example) If Apple does not take action If Apple takes action

  11. What other smartphone companies should do • Advertise product • TV, newspaper, online • Create something new • Catch customer’s attention

  12. Loser: Effects on Customers • Have to wait • Substitution Effect • Either way, customers lose

  13. Unknown

  14. Chinese iPhone Apps Winner Chinese App producing companies • Customers buy Chinese apps • Increase business Chinese Computer Engineers • More demand for Chinese Computer Engineers • More job opportunities

  15. iPhone hardware Manufactures Winner Company • iPhone is popular • Produce more Employees • Demand for more employees

  16. Winner: Black market dealers China $2000 $200 Hong Kong

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