How A Brawl Can Affect Demand and Supply

iPhone 5: five million units sold in 3 days!

As you surely know by now, Apple began selling the iPhone 5 earlier this week which has already been a huge hit throughout the United States. Although the new iPhone has not sold in other countries, many are anxiously waiting to purchase it. For example, the “black market” for the technology industry has been showing signs of growth in the last few years due to the convenience of getting products overseas. Many of us have friends or acquaintances that have either considered or in fact purchased mobile phones, such as the iPhone, in the US and transferred the product to another country to sell for a profit. The iPhone has set a new sales record, once again, due to selling more than 5 million units in 3 days, according to Rushe.

This week, there was news from the Huffington Post new agency, which states that there has been a brawl at Foxconn, the manufacturing plant that is a major supplier of Apple. This may surely have an affect on the production of the iPhone 5. Thus, the demand is clearly present by the record-setting sales but currently the supply may not be able to meet the demand in order to result in an equilibrium (economics point of view).

The brawl at Foxconn, according to Huffington Post, involved about 2,000 employees. Even though multiple reasons have been suggested by the news agency, there is yet a clear answer to why this brawl initially began. The point here isn’t why or how the brawl started but rather how it will affect the production of iPhones, and numerous other electronics, for the millions of customer that have yet received or ordered the new device.

Do you think that a brawl amongst 2,000 employees of Foxconn will have a huge affect on the production of iPhone 5 devices?

Be sure to come back soon to find out what I think will be the effects of this brawl at Foxconn.

Advertisements

One thought on “How A Brawl Can Affect Demand and Supply

  1. As promised, I am here to tell you what I think the effect of the brawl at Foxconn will be.

    Even though 2,000 or more people were involved, I don’t believe that this opposes a threat for the production of electronics or iPhone 5s. I say so because Hon Hai Precision Industry Co., Ltd, or Foxconn, employs nearly 1.2 million employees (10th largest employer in the WORLD) – http://www.bbc.co.uk/news/magazine-17429786.

    Thus, a brawl involving 2,000 people will definitely affect the company and its policies moving forward, yet only 0.00166 of employees (2,000) carried out this brawl. This is fortunate for Foxconn but a lesson must be learned to ensure that future “disruptions” and larger ones don’t take place.

    Here is a great article that examines the effects, if any, of the recent brawl:
    http://www.washingtonpost.com/business/economy/foxconn-and-apple-supply-what-are-the-effects/2012/09/24/126b9966-0670-11e2-afff-d6c7f20a83bf_story.html

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s