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Essay's paper info
| Topic: |
Technology
|
| Number of pages / Number of words: |
12 / 3105 |
Essay's paper body
In order to maximize profit, Apple ultimately pushes to sell more 8Gigs units than 4Gigs units. Pricing Strategy will be discussed later in the Demand section.
iPhone Models 4 Gig 8 Gig Difference
Selling Price $500 $600 $100 (20% more)
Cost to produce $246 $281 $35 more
Profit $254 $319 $65 more
iPhone Sales Price Break Down Table
iPhone Cost Break Down Schedule
Unfortunately, there was no long run costs data available...
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In order to determine the long run cost, I would have to collect cost data for each level of output and determine which level is the optimal production. Using and connecting the optimal level points, I would then be able to derive the long-run expansion path. However, due to the limited data availability, I cannot establish on whether or not Economies of Scale exists...
Essay fragment
General points of the essay
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Apple I-Phone
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