Why is the Supply and Demand of the Apple App Store is always fluctuating?

             

           As we all noticed, almost everyone wants an iPhone, iPad, MacBooks and so much more from 

the most popular machinery in the world that is Apple. These desires to have an Apple product has 

increased over the years and it began to be a trend of owning an Apple product. In the first 2 weeks of 

the new iPhone 5 launched in Singapore, it has been sold out. Thus, this shows us that the demand of 

this product is very high. So, what happens when there are a lot of people owning an Apple product but 

there isn’t enough application to satisfy each and every of them?

The Apple team has produced a marketplace called the App Store, this App Store provides the customer with interesting application that can be used in the phone. These applications consists of organizers, diaries and so many other useful stuff. With so many people in the world is in possession of the Apple products, there are not much choice in the app store. This is why there is a lot of complains saying that the App Store is expensive.

Consequently, the supply of the applications is low and the demand is high. Therefore, the Law of Demand can support this statement. The Law of Demand states that when the price of the product increases the quantity demanded will eventually decrease, an inverse relationship. Ergo, the demand of the App Store has decreases.

As the decreasing rate escalates over time, the applications in the App Store are growing. These applications gets more and more to supply millions of people, because of this the competition between the applications will drive the price down. The reasons given in the article is one of the causes of why the prices and the demands of the Apple App Store is always high at first and goes down later.

Even so, Apple had faced some difficulties during early August as their sales were dropping. This was what worried Steve Jobs. In addition to that Mr Jobs tries to segment the market properly according to the big consumers and so on. By doing so, Mr Jobs did a promotion that is called "Holiday  Sales". Unfortunately, he failed to segment the market properly. Thereby, the steps to price discrimination had failed. 

Steve Jobs evidently decreases the price of the Apple Product to attract more customers as shown in the graph.

The fluctuating of the App store.