1.17 [Related to the Making the Connection on page 77] An article in the Wall Street...

1.17

[Related to the Making the Connection on page 77] An article in the Wall Street Journal in 2013 was titled “In India, iPhone Lags Far Behind.” According to the article, the difficulty Apple was having selling iPhones in India was “no small matter as Apple’s growth slows in the U.S. and other mature markets.”

a. What does the article mean by “mature markets”?

b. Why would sales of iPhones be likely to be slower in mature markets than in countries such as India?

c. Would forecasting sales in mature markets be easier or harder than forecasting sales in countries such as India? Briefly explain.

Source: Dhanya Ann Thoppil, Amol Sharma, and Jessica E. Lessin, “In India, iPhone Lags Far Behind,” Wall Street Journal, February 26, 2013. Need a different answer that one that was given by previous .......

Expert Solution

a. What does the article mean by “mature markets”?

According to the encyclopedia, the definition of “mature markets” means that “A market is mature” when it has reached a state of equilibrium. A market is considered to be in a state of equilibrium when there is an absence of significant growth, or a lack of innovation. When supply matches demand the price decided by the market forces of demand and supply is called equilibrium price.

It means to me that the consumers’ quantity demanded has been fully satisfied without any further manufacturer’s attractive innovational updated or new version of the product to their product users. Because of this limited manufacturer’s capacity to introduce the newer and better versions of the products, the market is no longer growing. I think that it is my definition of “mature market”

b. Why would sales of iPhones be likely to be slower in mature markets than in countries such as India?

I think it is because the consumers do not feel the neediness or replace their iPhones due to that the iPhones that the consumers already have had is the latest new model.Therefore, without introducing the newer and better version of iPhones product, the iPhone sales will not be growing in the mature markets.

c. Would forecasting sales in mature markets be easier or harder than forecasting sales in countries such as India? Briefly explain.

In my personal opinion, it will be harder to forecast sales in the mature markets because in the mature markets, without any innovative new or better version of product launching, it is hard for the consumers to feel the neediness to purchase the existing product version.

Rahul Sunny answered 2 years ago

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