Monday 14 June 2021

iPhone X: the link between the cellphone and the Nobel Prize of Economics

What is behind Apple’s groundbreaking success?

Apple Computer Inc. is close to becoming the first trillion-dollar company. The iPhone X celebrates the first decade of the iPhone itself, which has sold over one billion units on its 18 iterations. Steve Jobs announced the original devise on January 7, 2007; Apple’s stock has become more valuable ever since.

http://latinamericanpost.com/index.php/perspective-2/17464-iphone-x-the-link-between-the-cellphone-and-the-nobel-prize-of-economics

No iPhone ever has been more fragile than the iPhone X, which bears a 64% gross margin for every $999 device put in circulation. Morgan Stanley predicts total sales for 123.1 million units, which means $123 billion gross earnings and $78.7 billion in profit for the X model in 2018. Customer service demand is also expected to rise.

- Advertisement -

Analysts’ confidence resides on the expectation of a strong 2017-holiday season as credit becomes more expensive, while Chinese and American unemployment rates average is 4.02%, the lowest it has been in a decade. Now, the 2007 financial crisis seems to be long gone and recovery in iPhone abiding nations is starting to be felt, plus, it’s a very strategic moment in Apple’s buying process following the 2015 golden age.

The iPhone 6 turned three years old on September 19th, which in accordance to the company’s Product Greenhouse Gas Life Cycle Assessment means retirement. The iPhone 6 holds the current record for the most units sold in Apple with 231.1 million pieces checked. The iPhone 8 and X family is expected to sell 13% more, Katy Huberty, Morgan Stanley Managing Director of Research, declared. Still, there is more to the iPhone X’s success than macroeconomics.

Richard Thaler won the 2017 Nobel Prize in Economics for his work in behavioral economics. His simplifying perspective about human decisions imply that human beings lack self-control, carry a limited capacity to process information and are more influenced by emotions than previously thought. Disregarding irreducible rationality can be very helpful to understand why the iPhone X is so popular.

According to behavioral economics, expectations drives behavior. In order to foster certain conduct then a number of conditions must be set. A nudge is the condition Apple sets in order to make people spend more money on a smartphone. Nudges are Apple’s secret weapon for increased sales and positioning in user’s top of mind.

- Advertisement -

Tim Cook is the living face of Apple. As such, it’s his job to defend the nearly million-dollar price tag on his product. The tech giant’s CEO nudged costumers by making the price relatable to everyday transactions by saying “if you think about that, that’s a few coffees a week. Let’s say less than a coffee a day in one of these nice coffee places”.

In the end, Apple’s core business goes beyond selling phones; it’s a signal business. Tim Cook’s team makes a terrific job by creating a product that will convey information about the user for social exchange. The tech giant re-enforces the idea that owning an iPhone makes you special. Customers live up to the challenge.

According to the corporation, owning an iPhone will make you look responsible, as well as wealthy. A message Apple never ceases to express despite not saying it explicitly. It’s the psychological game in which the Cupertino based company owns a competitive advantage and which will continue to make them rich.

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Q Costa Rica
Reports by QCR staff

Related Articles

Today’s Vehicle Restriction: June 13, “EVENS”

Today, Sunday, June 13, only EVENS can circulate. The measure is countrywide...

On Monday the vehicle restriction will change, again

QCOSTARICA - In times of pandemic, things change constantly, especially when...

MOST READ

Costa Rica cannot feel safe from covid-19 before having about 80% of population vaccinated

QCOSTARICA - No doubt, vaccines are one of the most powerful tools to maintain control of Covid-19, but when it comes to entire populations,...

eHow to Become Successful in Online Casino Betting 

To become a successful gambler in the online industry, there is a lot to cover. It can be known to be a vastly different...

Today’s Vehicle Restriction: June 12, “ODDS”

Today, Saturday, June 12, only ODDS can circulate. The measure is countrywide and applied between 5:00 am and 9:00 pm, save for those under the...

Tilaran, where the wind blows

QCOSTARICA - For years, Tilarán has seen the transit of tourists heading towards Lake Arenal, the homonymous volcano and La Fortuna or towards Monteverde. At...

Back in the 80’s Costa Rica

QCOSTARICA - When CR was so beautiful, healthy, and safe! No motorcycles. No loud cars. No billboards. No traffic. When everyone walked to a pulpería,...

The US sanctions Nicaraguan Daniel Ortega’s daughter and close associates

TODAY NICARAGUA – The United States imposed economic sanctions on four Nicaraguan officials close to President Daniel Ortega on Wednesday, June 9, 2021, including...

Costa Rica will have a system to reduce marine pollution

QCOSTARICA - Costa Rica will have a system called "Interceptor" that will eliminate floating and suspended waste from the upper layer of its waters,...

Planning to travel? You will only be certified as vaccinated if you received doses in Costa Rica

QCOSTARICA - Do you need a certificate of the COVID-19 vaccines applied in Costa Rica?  People who require a certificate that certifies the receipt...

Vaccine Tourism – A Practical Guide

By Amy Gdala, Guest Contributor - The US has a surplus of vaccines, while Costa Rica is struggling to supply sufficient numbers to citizens...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.