Iphone Microeconomics In China

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Written by:

Stephanie S


Date added:

December 21, 2013








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3 / 606


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Rogue dealers have a monopoly over consumers in the market. The dealers are refusing to follow any rules and there are no antitrust laws that they have to follow when they supply the iPhone. With the demand so high they can charge excessively high amounts for the phone and have no price ceiling to worry about...
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Apple already made their money off of the phone by selling it to a legal dealer who then, without Appleā€™s knowledge, sent the product to China. The cost to send the phone to China is out of the equation for Apple and now must be evaluated by the dealer. He must include the original cost of buying the phone and the additional cost to ship the phone which will increase his marginal costs...
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