What might cause the change in demand for an iPod?

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reyemile eNotes educator| Certified Educator

It's important to be precise with questions like these, because subtle changes in wording and context can change the answer.

Demand can mean the number of iPods that consumers will buy. In that case, raising the price will decrease demand, and vice versa. This is common sense: the more expensive something is, the less likely people are to shell out the money for it.

However, microeconomics and business textbooks frequently use Demand as shorthand for the Demand Curve. The Demand Curve is a function that correlates the possible prices of a product with the number of buyers at any given price. Under this paradigm, a change in supply or price does not constitute a change in demand; it simply moves the current market to a different point on the same curve. That is to say, if you increase an iPod from $300 to $400, fewer will sell, but the number who would have bought at $300 is unchanged. Those people still count as "demand" for the iPod, since they do still want an iPod, just not at its current price.

To change a Demand Curve, we can answer with almost anything that makes the iPod more or less desirable regardless of price. New features, brand recognition, or improved warranties could all increase collective desire for an iPod; high-class competitors, poor reviews, lack of reliability, or an ugly redesign could all decrease that desire. In fact, there are more valid answers that invalid ones. The only catch is that we cannot answer with "how much it costs."

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ulmerl eNotes educator| Certified Educator

Certainly price could affect the change in demand for an iPod. Right now Apple has cornered the market when it comes to compact mobile listening technology, but you cannot discount competition from other tech companies. Companies like Samsung, Microsoft, and Archos have all released mobile devices that compete with Apple's iPod, and they are very price-competitive with comparable technological offerings. As consumers become accustomed to companies offering similar features to that of the iPod, but at a lower price, you can expect to see a change in demand for Apple's product.

Right now Apple is in the enviable position of having name prestige, otherwise known as brand recognition. The average consumer is very familiar with the Apple brand, but are they familiar with Archos? Often not, and this is an obstacle Archos will need to overcome to claim some of the market. If they are successful, though, we will see a change in demand for iPods.

lmcnamee01 | Student

A further consideration that could influence the price of an iPod is planned obsolescence. This is when companies plan in the release of extra features that they old back from earlier products. For example Apple released initially the iPod and later released a wider range of iPods including the iPod nano. 

These strategies link to the product life cycle of the product and the phase the product is in the product life cycle. Looking at current product releases from Apple iPods appear to be in decline and Apple could be looking for an extension strategy that would increase the demand and sales of iPods. 

lydiahkery | Student

Demand involves the number of units a buyer is willing and able to buy at a given price.The good in  this case is the iPod.There are various factors that can cause a change in demand for the iPod. The first factor is a change in price. Increase in a price of the iPod leads to a decrease in demand while a decrease in the price of the iPod leads to an increase in the demand of the iPod.The second factor is the change in the level of income. High incomes lead to high purchasing power and thus people spend more leading to high demand of the iPod while low incomes lead to low purchasing power and thus lower demand of the iPod.

The third aspect is the price of substitutes in the market. The substitutes can be devices such as Samsung phones and Samsung iPad. When the prices for substitutes are low,customers buy them more and thus the demand for the iPod goes down while an increase in the price of substitutes leads to high demand for the iPod. Lastly, the level of advertising can determine demand. Aggressive adverting ensures people are aware of the product and thus the high demand of the iPod while low levels of advertising leads to lower demand of the iPod.(Frank, 2014)



Frank, R. (2014). Microeconomics and behavior. McGraw-Hill Higher Education.


msiegel1 | Student

There are multiple factors at play in the changing demand for iPods.

1. The price of the product

The price now, when taking storage and battery life into account, is most often seen as "not worth it." The value and given price have to align for a purchase to be likely.

2. The targeted consumer's income

This applies for all products. Depending on who the targeted audience is, the consumer's income may play a part in their willingness to purchase the product.

3. The price, function, and availability of similar products

Portable media players have now become commonplace. Most smart phones are equipped with the same functions through their own design or with the simple download of an inexpensive app. There isn't much drive to have both a smart phone and an iPod.

4. The preferences of consumers (i.e. Is it trendy? Do I want it?)

Now that most iPod versions have been discontinued, more classic iPods might be seen as "vintage" or "cool." However, a large resurgence is unlikely. When iPods first came onto the market, they were viewed as highly popular.

5. Market saturation

As noted in reason 3, portable media players are now commonplace. Uniqueness and novelty are no longer attributes of the iPod. The market has also seen multiple iterations of the iPod.

6. The year

iPods were once extremely popular and in high demand. Apple, Inc. first distributed iPods in 2001, soon after the Macintosh version of iTunes. This company went through a series of iterations. However, in recent years, iPods might be considered almost extinct. At this point, Apple has discontinued all models except one, the iPod Touch.