What Is The Production Of The Smartphone, Iphone X?

Abstract and Highlights of the article: This article discusses the Apple’s new iPhone, iPhone X, which is priced at whopping $1000 approximately. The new phone has a plethora of technological changes when compared to its predecessor. It is for the first time a smartphone has been priced at more $1000. Even though it was thought that such a high price tag would reduce the demand for the new iPhone, that doesn’t look like the case. This is the first time Apple had made radical changes since the introduction of iPhone 10 years back.
Analysis of article: The above article along with some other related articles are used to analyze this article in a way that it reflects the topics that were taught in the classes so far. The analysis is formulated in a way that each chapter is covered individually as possible.
Problem-Solving Methodology: Let us look at how the production of iPhone X might have happened. Apple could have continued with the same design while the competitors are coming up with latest technologies like curved screens, bezel-less displays and other technological advancements in their smartphones. But, for the questions asked as part of problem-solving methodologies have fetched the right
Initially, Apple used to sell an iPhone at 40% of gross margin. Now, iPhone X is being sold at a lower gross margin. To make this decision, Apple needs to consider the Break-even analysis. If the price of the phone is $1500 instead of $1000, how many phones need to be sold and how difficult is to sell the phones. As the price increases, demand might fall. Apple consumers might be price elastic. Whereas at a $1000 price tag, they might have lower margins, but they might get to sell more phones thereby have greater revenues. This is where the Marginal costs, Marginal revenues, and fixed costs come into