DD202A

In subject to realize the major topics which associated to the demand and
supply for the specific product, The mobile phone market would be displayed in
subject to display the issues which impact on the demand and supply in the market
and the others factors of prices and technology, for example: in the case of
increasing the technology which applied by the firm, the supply will increase, the
price of the product will reduce, and the demand will maximize.

It is estimated that the mobile phones will minimize through the coming years.
This is primarily because of the intensive rivalry and this thrust the suppliers to rise
the providing of the products. If the market is at steady point, demand will increase
at a slower rate. (5% a year until 2015) (IDC,2015,)

The Supply and Demand Diagram for diminishing the price of Mobile Phone.

S1

S2
P1

P2
D2

D1
Q

Q1 Q2

1
 In point with the previous forecasting from International Data Corporation (IDC),
there is decreasing in the phones in the market of Kuwait by 6 % in 2016. There is
estimation was performed via the global technology research as well as consulting
services organization that the market will persist to reduce by 19 % and 22 %
yearly in the second quarters and third quarters. These issues have affects on the
issues of the supply and demand curve because the there are predictions that notify
that the issue of buying for the mobile phones could be reduced at the end of 2016,
the demanded quantity will decrease , then there will be moving in the demand
curve to the left side.

Price of PHONES

Supply curve

P1

P2

D1

D2

Q.D of phones

Q2 Q1

2
 "In economics, the financial system of Kuwait relies on the petrol sectors and
about 95 % of GDP stand on the revenue from the exporting of petrol to the other
countries in the world. According to the last period, the price of the petrol reduced
in big value, these resulted to negatively impact on the goal achievement of the
financial system of our country and impact on the effectiveness of the market as
the customers in our country become haven’t the capability to perform more
buying for the opulence products in special. These resulted in impact on the
demand and supply for the mobile phones and the remaining of the products."
These decreased the demanded quantity and shifting it to the left side.

Price of PHONES

Supply curve

P1

P2

D1

D2

Q.D of phones

Q2 Q1

3
 Factors influencing on demand

The individual demand curve counts on displaying the prices which paid off in
cause for purchasing specific quantity of product.

The market demand curve build on combination of individual demand curves. This
display the quantities that the individuals organizing to perform purchases for the
product at diverse prices.

1. Change in price

A Movement throughout the Demand Curve may be created from a change in price
causes.
P

400

385

370 D

Quantity
20 m 25 m

400 $ to 370 $ is the range of reduction in the prices of I phone6. The apple
company wished to increase its sales more than Samsung Company. The reduction
increased the number of the customers from 20 million to 25 million customers and
the demand quantity was increased.

4
 Shifts in the demand curve

According to the same price, the clients may buy small or large quantity from the
goads. The demand conditions which can be changes are deemed as the reasons for
this matter.

P
D2

D1

P1

QUANTITY

Q1 Q2

Diagram to show shift in demand

S
P1

P2
D2

D1
Q.S of tobacco

Q1 Q2

5
A shift to the right in the demand curve may happen for many causes:

Income: - the income play vital task in this issue. If the income of the individual is
big, these will result in raise his desire for buying the product and the demand will
raise. The income of the individual may raise through different methods like; raise
the salaries, fees, and overtimes.

Quality: - the high degree of quality for the goad will thrust the client to buy the
products, while small quality of the goad result to reduce the demand on the goads
such as the good quality pixel for the camera of the Samsung galaxy s7, these
resulted to raise the demand on this cell phone.

Amazing advertising have high affect on the goad as it will raise the demand of
the goad such as the high money that expend via the Samsung organization on the
advertising field for their goads, these will result to raise the profitability (Ricardo
Calca ,2014).

Substitutes:- if the substitutes raise ,the demand of the other firms will raise such as
if the apple company raises the prices of its goads , these will raise the demand for
goads which manufactured via the Samsung organization.

Complements: - the price decreasing for the complements will cause to raise the
demand.

Foresees of rising in the price of the goad, when person predicts that the price for
iphones will rises in the future, he will purchase it now.

The demand of the goad could be reduced as the income is small or the quality of
the product isn’t perfect.

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Determinants of supply of the mobile phones

1-Prices of related goods: - if the firm produces ipad and mobile phones. When the
prices of the mobile phones reduced, the firm will count on choosing to
manufacture the ipad more than phones. In contrast, if the prices level of the ipad
reduced through the market, the firm will raise the supplying from the phones.

2- Technology: - the efficiency of the firm will reach to the biggest level in the
reason of counting on high technology. The innovation provides the firm to stand
on small resources in order to manufacture the goad. The innovation which used
by the apple company was increased, these reduce the production costs and the
supply of these products was increased such as the tools which applied by the
apple company and cohered chips in efficient way. These leaded to increase the
supply of iphone.

3-Prices of inputs: - the price of the raw materials impact on the demand and
supply of the mobile phones. If the prices of raw materials reduce, the costs of
production will reduce and the supply of the goad which manufactured via the firm
will rise (Robert E. Prasch,2008). The cost of procuring the iphone6 was increased
because the increasing in the prices of the materials like; the gold and plutonium.
These leaded to reduce the supply curve of the iphone6

4-Expectations: - if the providers or companies have particular estimation, this will

impact on the quantities which supplied by them.

5-Number of sellers: - The Qs of the goad through the market provided through
number of providers or companies. Thus, we can note that the QS through the
market could be performed through the number of sellers.

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The price is deemed as the prim issue which influence on the market. In stand with
the number of persons, the cell phone is just machine to contact with people; these
reduce the desire from buying new cell phones. For these individuals, the
decreasing in the price will raise the QD. The income of customers performs
essential part in this operation. For instance, the average income of the people in
Kuwait is KD 300 per month and the price for Samsung Note 2 is KD 200. These
leaded to decrease the demand for this phone because the customers can’t able to
pay off 66 % from their income to purchase the Note 2 in Kuwait.

Samsung mobile as well as Apple firm are considered the largest rivalries through
the market for the mobile phones. When Samsung S3 manifested through the
market, more individuals liked this phone due to its abilities. Over time, Iphone 5
manifested; this encouraged the individuals to purchase Iphone 5 more than
Samsung S3 (Hoovers ,2016).

At the end, our country is deemed as area that all firms in the world like to
provide it in order to perform big sales throughout the markets in the country of
Kuwait because the issue of demand through the market in our home is very big.
The demand for the goads through the markets in our home is big due to raising the
income for each person and increasing the standard of life of the individuals in our
home. Thus, the large firms which manufacture the mobile phones such as apple
and Samsung companies liked to provide the market throughout Kuwait with
massive quantities of goads in order to create big profits from the markets in
Kuwait.

The GDP in our home counts on the petrol sector in basic with 95 %. We can
report that the petrol sector considered the principle for the economics in our
home. (IDC,2015) .If the prices of the petrol reduced, the standard of living of the

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individuals in our home becomes not the same as the past and their considered for
the luxury products was decreased. There many new firms appeared in the phones
market such as VSun, Xtouch, and Obi. They counted on small prices; these
resulted in catching more people for them.

Reference

Gare Thompson,2010,What Is Supply and Demand? (Economics in Action

(Paperback)), 2010,ISSN:963582-78

Hoovers ,2016,Samsung Electronics Co., Ltd. Marketing Contacts, visited in 20-

11-2016, available at :-
http://www.hoovers.com/company-information/cs/marketing
lists.samsung_electronics_co_ltd.a166cb2c88a2e408.html

IDC,2015,Kuwait's Mobile Handset Market Set to Shrink in 2016, visited in 20-11-

2016, available at :-

http://www.idc.com/getdoc.jsp?containerId=prCEMA40706215

Pindyck,2012 Microeconomics (8th Edition) (The Pearson Series in Economics),

ISSN: 5896-325

Ricardo Calca ,2014,High Probability Day Trading with Supply & Demand (Forex
and Futures Newbie Day Trader Series Book)

Robert E. Prasch,2008, How Markets Work: Supply, Demand and the Real World