Chapter 6 - Aggregate Demand

Article: http://www.theglobeandmail.com/news/technology/tech-news/apple-ipad-2-sales-seen-clearing-1-million-units/article1941087/


Summary:

Apple have recently released the iPad 2 and the demand for it have caused it to go out of stock in many electronics retail stores such as the Apple Store, Best Buy, and even Walmart. This is remarkable considering the original iPad only managed to sell one million units after 28 days. Over the weekend it managed to sell nearly one million iPad 2's. Their shares have gone up 0.6 percent even though other technology companies were facing a percentage drop. It also seems like other companies such as Samsung and Motorola have followed Apple's lead and jumped onto the tablet bandwagon. It just proves how powerful Apple's demand factor is.



Connections:

This article relates to this chapter, aggregate demand. Apple's iPad 2 managed to sell such a high number units because of an extremely intelligent marketing scheme, release the exact same product in a new package. People will want to be the first ones to have an iPad 2. The iPad 2 is a slight revamp of the iPad being thinner and having a pair of cameras, how is it that is matches up to the iPad just over the weekend? They hype up the product to sound like a giant step forward from the original iPad. This example extends to their iPhone line as well.



Reflections:

Aggregate demand plays a big role in the economy, it'll simulate the economy or ruin a company. Those companies that can manipulate it will hit gold, such as Apple. People will buy a new product just to be the first on board. The iPad was a home run because everyone seemed to be sporting one such as Kobe Bryant, Justin Bieber, and even that neighbour you hate. Aggregate demand not only simulates the economy but it also is an indicator. People are more inclined to spend if they have more disposable money. The iPad 2 shows that the economy is doing great, again, it sold near one million units on its opening weekend; priced at $500. That says a lot, it proves the powerhouse marketing genius behind Apple.