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In topic to grasp the basics conditions which correlating to the demand and
supply that connected to particular product, The cell phone market could be cleared
in topic to clear the conditions that affect on the demand and supply throughout the
market and the others forces that attach to the prices and technology, for instance:
through the condition of raising the technology or innovation which was via the
company, the supply will raise, the price of the product will diminish, and the
demand will reach to the highest limit.

It is predestined that the price for cell phones will be reduced through the future.
This is firstly due of the intensive rivalry and this thrust the suppliers to rise the
providing of the products. When the market is at fixed point, demand will raise at a
slower rate. (5% per year to 2015) (IDC,2015,)

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

S1

S2
P1

P2
D2

D1
Q

Q1 Q2
 According to the topic and conditions for the past forecasting in accordance to
International Data Corporation (IDC), there is reduction in the sales of the cell
phones at Kuwaiti market by 6 percent in 2016. There is appreciation was played
through the global technology research and consulting services corporation which
the market will going on decreasing by 19 percent and 22 percent per year through
the 2th quarters and 3th quarters. These topics have great affects and implications
on the matter of the supply and demand curve as the there are appreciation that
remark that the matter of purchase for the cell phones will be diminished at the
end of 2016, the quantity of the demand will be raised, and the demand curve will
move to the left side.

Price of PHONES

Supply curve

P1

P2

D1

D2

Q.D of phones

Q2 Q1
 "According economics, the the Kuwaiti system depend on the oil sectors and 95
percent of GDP based on the revenue from the exporting of oil to the other nations.
The petrol prices minimized, these affected the goal accomplishment of the market
in Kuwait in negative image because the customers become haven’t the capability
to make more purchased of luxuries products. These influenced on the demand and
supply for the cell phones and the residual of the products." These minimized the
demanded quantity and moving the curve to left side.

Price of PHONES

Supply curve

P1

P2

D1

D2

Q.D of phones

Q2 Q1
 Factors affecting on demand

The individual demand curve builds on clearing the prices which paid out in order
to buy specific quantity of product.

The market demand curve is groups of individual demand curves.

1. Change in price

Change in the Demand Curve may be done from a change in price causes.

The subject of changing in price level of the product will cause to moving over the
Demand Curve.
P

400

385

370 D

Quantity
20 m 25 m

For apple company, when the apple firm diminished the prices of iphone6 from
400 $ to 370 $, the demanded quantity for this iphone raised from 20 m to 25 m
through the various markets.
 Shifts in the demand curve

The moving at the demand curve at the same price can be happened, the customers
have goal of purchasing big or small quantity of products.

P
D2

D1

P1

QUANTITY

Q1 Q2

Diagram to show shift in demand

S
P1

P2
D2

D1
Q.S of tobacco

Q1 Q2
A shift to the right in the demand curve may happen for many causes:

Income: - the income do pivotal role in this matter. When the income of the people
is high, these will cause to the power of buying the product and the demand will
increase. The people’s income increase by several issues; increase in the salaries,
fees, and overtimes.

Quality: - the high quality of product like the the iphone that has high pixel
cameras such as I phone 6s, this seduced the individual to purchase it.

The advertising issue can raise the loyal for the brand and shore up the demand.
For example, the big rate of expenditures on advertising via the Apple firm has
leaded to provide its sales in the global markets.

Substitutes:- the topic of raising the price of substitutes, Such as; when the prices
of smart phoned that produced by Samsung company raises, this will lead to
maximize the demand for iphone that produced by the Apple Company as it is
deemed as the basic substitute for the Samsung.

Complements: - the diminishing through the price of complements will lead to

support the demand.

Foresees for increasing in the price; there prediction that price for iphone 7s will
increase in the future, the customers will buy it now.

Determinants of supply of the mobile phones

Prices of related goods: - this topic associate to the plant that produce the smart
Phones, cameras, and laptops. For example: as the price level of smart watches
increased because the Apple company makes big concentration on manufacturing
of smart watches to increase the profits. So, the supply of the iPhone 6 could
decrease (HazlittReference ,1988).
Technology: - the best innovative technology will shore up the company to
produce in innovative ways, the topic of building on low level of resources to
manufacture specific product. For example: best technological leaded to shfit the
supply curve for iPhones to the right. The equilibrium price minimized and the
equilibrium quantity will increase. For instance: the tools that coalesce chips is
harrier will likely low costs of production for apple company and will therefore
support the supply of the iPhone 6 .

Prices of inputs: - The prices for the materials which participated in the different
process in order to produce the product as the raw material are considered
important elements for the production. When input’s prices rise, the costs of
production will raise and the Qs of product will reduce. Priceless metals and raw
materials like gold and platinum that are utilized in the complex operation of the
iphone. As these metals are so high-cost to gather and utilize, the whole producing
cost of an iPhone is raised, and the quantity of iPhones that are supported by Apple
Company decreased (Household,2015).

Expectations: - the anticipation that is done by the companies like Samsung and
Apple Company about the future prices will impact on the quantity supplied.

Number of sellers: the more producers of smartphone which there are in the field,
the bigger the smart phone and iPhone 6 supply will be

The demand and supply of Samsung phones is impacted by many factors in the
different markets in Kuwait. The price is looked as the first one which influence on
the demand of the smart phones. The smart phone is considered as just instrument
in order to contact with other people, thus they don't desire to buy new smart
phones. For this point, the decline in the price level of the smart phones will lead to
increase in the demanded quantity; the demand is looked as flexible. The income
of buyers represent vital factor for the customers to purchase the phones. When the
price of Samsung Note 2 is 200 KD, but the income of the most Kuwaiti people is
KD 300. This leaded to reduce the demand for the product because the customers
can’t pay most of his salaries in the phone. The number of customers who put great
attention to the cell phones at market in Kuwait can affect on demand curve.

Samsung and Iphone Company are biggest competitors. For example; when
Samsung S3 appeared, the persons focused on this phone, but after Iphone5
appeared, the customers become focused on it more than S3. This leads to reduce
the demand for Samsung S3.

At the end, there is no uncertainty that the country of Kuwait is looked as brand-
centric market as the company prefer to supply it with many products and the
customers have flair to purchase according their desire. There are a lot of macro
factors that impact on this matter such as hampering growth, including the
forecasted flattening of the market as the diminishing in the demand level and
population growth that is considered little.

The oil section in Kuwait provides the net income of the nation by 95 % that
generated from the export of the petrol and support the GDP (The odora,2014).
According to this matter, the oil crud prices through the world and OPEC reduced
and this matter leaded to reduce the standard of living of the Kuwaiti citizens and
negatively impacts on the demand of the product as the individuals become not
capable to buy the cell phones like the previous and because the reduction in the
prices through the petrol sector. These caused to decrease the demand level for the
smart phones in the Kuwaiti market. The set of factors shored up cheap prices of
cell phones to be cheap like the new brands; VSun, Xtouch, and Obi, and etc
Reference

Econ Household,2015,Review of Economics of the Household , Springer US

ISSN: 1569-5239

Henry HazlittReference ,1988,Economics in One Lesson: The Shortest and Surest

Way to Understand Basic Economics

IDC,2015,Kuwait's Mobile Handset Market Set to Shrink in 2016, visited in 05-11-

2016, available at :-

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

Robin Wells,2012, Economics,

The odora,2014,Kuwait economy, , visited in 09-11-2016, available at :-

http://www.theodora.com/wfbcurrent/kuwait/kuwait_economy.html