Factors That Determine The Demand And Supply Economics Essay

Presents, mobile phone holding a plentifulness of advanced maps and applications that will convey out a batch of convenience to human being comparison to the yesteryear. In this appraisal we will more stress into the development of Samsung mobile phone from early of the twelvemonth until today 's. Basically, the company was been found by Lee Byung Chul which is from South Korea at 1983. Samsung electronics had launched their first nomadic phone in 1988 at South Korea market. However, during that clip the demand for this market was really hapless and unstable.

In 2007, Samsung electronics become 2nd largest Mobile phone shaper in the universe and they had successfully catching Motorola for the really first clip. Samsung was the universe 's largest maker of OLEDs. Due to the advanced and advanced digital universe, Samsung had produce the first smart phone which is known as Samsung Galaxy S and its launch in the March 2010 and go the top merchandising smart phone in India market.

Get quality help now

KarrieWrites

Verified writer

Proficient in: Demand

5 (339)

“ KarrieWrites did such a phenomenal job on this assignment! He completed it prior to its deadline and was thorough and informative. ”

+84 relevant experts are online

Hire writer

This smart phone has build with the OLEDs screen and have android package which significantly compete against another well-known smart phone which is call Iphone by Apple.

After the few old ages, Samsung had come out new theoretical account which named as Galaxy S2 and this theoretical account acquire best android device at the twelvemonth of 2011. On the other manus, Samsung had launched another latest theoretical account which is Galaxy 3 in 2012 due to the advanced and beforehand engineering they have. Samsung had received over 9 million preorders for this theoretical account in between two hebdomads after the unveiling and it sold over 10 million devices in less than 3 month.

Based on the above gross revenues figure, this prove that the demand and supply for this theoretical account is much more above than others model.

Factors that Determine the Demand and Supply

There are some factors that can act upon the demand and supply of Samsung mobile phone. The first one to act upon the demand of the nomadic phone is the monetary value. For different individual they have different position of the monetary value. For most of people, nomadic phone is merely a thing can reach with others, so that they do n't necessitate new updated nomadic phone. At this point, the lessening of the monetary value will do an addition of quantity demand, the demand is elastic. The 2nd factor is the income of purchasers themselves, is either their wages can be afford to the nomadic phone. For illustration, the monetary value of Samsung Note 2 is RM2200, but the mean income of those purchasers is merely RM3000 per month, so that they wo n't give 73 % of their wage to purchase this phone. Another ground of the displacement in demand is the figure of the purchasers is at that place many people interested with the theoretical account. Samsung Mobile has a large rival which is Iphone, it 's like the first clip Samsung S3 come out people may be interested with this theoretical account, but after Apple Iphone 5 launched, they find themselves are more interested with the new Iphone 5, so that the demand of Samsung S3 will diminish. This may besides vie with ain trade name Mobile phone, like S3 compete with Note 2.

The factors that can find the supply of Samsung mobile phone besides have some points. For the position of Sellerss the input monetary value is a factor determines the supply, the monetary value when the monetary value is higher, they can gain more. As we know, when a new theoretical account of nomadic phone foremost comes out, the monetary value will be the highest period, at that clip Samsung Company can acquire more benefits. By the lessening of the monetary value, the benefits will go less and less, so that the supply will besides traveling down. The supply besides can be influenced by the new theoretical account of Samsung mobile phone or the term of the theoretical account itself. Like Samsung Splus, after a long term merchandising this theoretical account, the company itself will cut down the supply of this theoretical account. By the lessening of the monetary value, company wo n't acquire net income of this theoretical account, so that they will halt bring forthing this theoretical account after a theoretical account come out. Now Samsung Mobile have S3 and Note 1/2, it 's difficult to happen Splus in the market.

Figure 1. Changes in tendency of monetary value of the nomadic phone

The alteration in tendency of monetary value of nomadic phone is ever being decreased by the base on balls of clip. As we can see from Figure 1, here are two alterations in tendency of monetary value of Samsung mobile phone, one is S3 and the other one is Samsung Note2. These two theoretical accounts of nomadic phone are the most popular theoretical accounts of Samsung. We can happen the clip when the Mobile phone foremost came out, the monetary value was at the highest point. Samsung S3, when the clip it launched, the original monetary value is RM2199. The monetary value will remain for one to two months, and so it will diminish, and till March 2013, people can acquire this phone every bit low as RM1659. Same as Samsung Note2, but the different is, during February 2013, this theoretical account is out of stock, the demand is higher than the supply, so that the monetary value has been increased.

The demand of the nomadic phone will act upon the monetary value and measure. When there have more purchasers, the monetary value might non diminish every bit fast as it will be, but might besides increase a spot, the measure supply will besides be increased. It 's like the monetary value addition of Note2, the demand addition, so that the measure supply addition, and after that period the monetary value come back to the normal tendency.

How the determiners of supply affect the monetary value and measure, when the supply additions, the measure supply besides addition, so that the monetary value will go lower. When the monetary value is acquiring lower, people will be more willing to purchase it, so that the measure demand will increase.

Government Intervenes

In these yearss, authorities of Malaysia besides had intervenes into nomadic phone market. First of all, in Malaysia, the economic system system is a assorted economic system. Mixed economic system system can be defined as the combination of the benefit of the free endeavor and cardinal bid system. In Malaysia, some company is controlled by the authorities nevertheless some are private. Furthermore, Malaysia authoritiess are assisting those concern people harmonizing to the legist ration and ordinance, and they are non merely about marketer, they besides included purchaser and besides the consumer as good. For case, the authorities will guarantee the consumer are satisfied or agree the monetary values of goods and services provided by the marketer.

There are a tonss of economic system issues that need to be solve by authorities, deficit and the excess are one of the most common issues that occurs in Malaysia. But In nomadic phone industry excess issue seem to be the most popular issues in Malaysia. Surplus is intending the supply of the goods and services are more than the demand of the consumer. Therefore, when they are excess, the provider will seek to cut down the monetary value in order to make higher demand of the consumer. In others words, excess is average that when the supply of goods and services is higher, accordingly its makes the consumer non willing to pass so much money to acquire the goods or services.

In this current twelvemonth, the Samsung company was launch a different sort of trade name new smart phone and these trade name new smart phone was been aggregate production by the company hence the monetary value of the phones will be more expensive than normal phone. After the Samsung company had launched the smart phones in the period of clip, the supply are non met the demand of the consumer because of the higher monetary value and consumer unwilling to pass that much of money to buy a nomadic phone.

Therefore based on the state of affairs above, Malaysia authorities has the duty to assist the provider to run into the demand of the consumer. In order to get the better of this excess job, Malaysia authoritiess have to utilize different ways to get the better of this job. For case, Government has late assisting those pupils and working grownup that have salary below RM2000 by subordinate RM200 discount for those who purchase the smart phone.

Besides that, alterations to revenue enhancement are besides one of the good ways for authorities to get the better of the excess issues. For illustration, the authorities will carry on a research to look into on the revenue enhancement payment that is paid by the provider so that the authorities can do an accommodation to the revenue enhancement for providers in the certain period of clip. With this alteration of revenue enhancement, the providers are able to cut down the monetary value and run into the demand of the consumer.

In decision, Malaysia authorities should step in the economic system and utilizing the suited solution to get the better of the economic system issues by pull offing fiscal good and rational. Government besides need to hold a rational and clear before they make determination devising on economic system, because this will finally impact the to the populace.