This lack of supply only led to a higher demand, which caused customers to get one, whatever the cost, whatever the inconvenience (Federico-O'Murchu, 2014). Due to the shortage of supply, the increased demand, and introduction of the iPhone 6 Plus, the average iPhone cost increased. The average price went from an estimated $600 in the first quarter of 2014 to $687 in the fourth quarter (Chowdhry, 2015). The increased price was a necessary move by Apple to create an equilibrium in the market.
The primary market for products produced by Banana Technologies is geared towards individuals between the ages of 16 and 50. The largest group of consumers expected to purchase Banana Technologies products are college students and business professionals. These products will allow the user to stay connected to friends, family, and co-workers. Consumers will be able to access school and work remotely while managing through their busy and often hectic schedules. We will also enhance and ease their lives with applications that will allow consumers to better management of time, money, school assignments, and relevant documents. Banana Technologies has not forgotten about the importance of having fun and incorporating user-friendly games at our consumer's fingertips. We will continue to compile research and incorporate new innovative technologies to deliver products that rival Apple's iPhone. .
Price Elasticity of Demand.
There will be many issues and opportunities that Banana technologies will face concerning competitiveness and long-term profitability. Price elasticity of demand, technological innovation, and cost structure are just a few examples (Colander, 2013). Price elasticity of demand is the percentage price change in quantity divided by the percentage change in price (Colander, 2013). If Banana Technologies releases a new tablet to the consumer market, then price elasticity of demand will play a large role.