Week 3 Economics Essay On Cell Phones

Satisfactory Essays
Week 3 Economics Essay
Jacob Sundermann
Spring Arbor University

With technology continuously advancing and information becoming more easily accessible through smartphones, it is a must have to keep up with the latest cell phones that come from Apple. Just recently, Apple has released their newest model, the iPhone X, at a the standard price of $999 (Reisinger, 2017). Comparing this to their original iPhone, which was priced at around $499 (Cohen, 2007), this is a decent price jump, not including the prices if you were to buy the larger models or models with higher storage. However, consumers are still willing to pay a pretty penny for these smartphones, regardless of the price. This shows how even though the price may rise on
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Or in the case of iPhone’s, simply creating more advanced technology would increase the price while demand stays the same. The advancement in technology for new models on iPhone’s can be represented by the given graph. Because there are little to no substitutes for iPhone’s, the demand will always stay the same no matter the price. In about 10 years time, the price of iPhone’s has increased by approximately $500, but because in this day and age almost everyone needs a smartphone and Apple is a major smartphone producer, consumers will continue to purchase iPhone’s no matter the price, allowing the demand to stay the same. Something that could possibly cause the demand in iPhone’s to decrease could be if another competing smartphone producer made a product that was better in quality and cheaper in price than the current iPhone model, this would result in a loss of capital for Apple which could then lead to them also increasing the price on their products. In regards to my faith, I believe that the increase in price due to advancements in technology in the smartphone industry is completely ethical. Although it is hard for some people to afford a brand new cell phone for nearly $1,000, the cost to produce, the labour, and the fact that the industries have to make a profit must be taken into consideration. With these factors in mind, the ever changing smartphones and the increase in prices can be considered ethical. If they were to sell
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