***Summary***
Since the release of the iPad 2 on March 11th in the United States and Worldwide on March 25th, inventory has become scarce on the market. The highly anticipated gadget has already sold a whopping 6 million units worldwide. Apple, in the past has already been criticized on not being able to supply enough units for waiting customers. At the international launch, studies show that some people waited in line for more than 2 days. Another bump in the road for the supply may be the earthquake in Japan. iSuppli, a research firm from the United States noted that some parts from the iPad 2 are produced in Japan. Back on track now, during the past week, some Chinese families celebrated the ritual "Ching Ming", which is a celebration and offering for late ancestors. During the offerings, the present living generation would burn imitation money and luxury goods to the afterlife. Chinese villagers in Malaysia scoured stores for replica models of the iPad 2. One store owner says that his store had 300 replica paper models of the highly sought after gadget which sold for $1 each. In the end, his inventory was empty.
***Connections***
In chapter 6, the aggregate demand for the iPad 2 is to have a technically trendy gadget. For the item to have been sold out so fast is not much of a surprise because of Apple's inability to supply enough units for customers worldwide. As for the paper replica models, the people purchasing them believe that it is a fashionablly cool thing to have in the afterlife. The aggregate demand for this is the ability to be able to purchase something for their ancestors.
***Reflections***
Many people celebrated the event "Ching Ming", including myself. Before this article, I did not realize that people went as far as to buying new tech-savy gadgets. When my family celebrates, we burn only neccessities such as money and clothes and have not gone as far as burning new gadgets.
I find the "Ching Ming" holiday to be very interesting because they burn luxuries. Moreover, I think that another factor of aggregate demand that is found in this article is the exporting and importing because now since Japan can’t really export goods, the competition between other countries may start. IPad 2 is an elastic good because it is a want that many consumers stood hours in line purchase.
ReplyDeleteI found this article very interesting. I did not know that people burned model iPads as part of the celebration. As for the iPad replicas, although they are not the real thing, they are still a new kind of product. With Apple being the way they are (with their incredible marketing ability), even the replicated products have value, and in this case, as necessary items for those in the afterlife. This all ties in with the psychological and new product factors of aggregate demand.
ReplyDeleteI enjoyed reading this post, great job.