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When the iPhone was launched in the second quarter of 2008, it was priced at $599, and Apple sold 270,000 units during this quarter. In mid-September of that year, Apple reduced the price to $434, and sales rose to 1,119,000 during this next quarter. Without even doing any calculation, these figures clearly show that Apple’s demand was very elastic. How reliable do you think this estimate is? What other factors do you think should be taken into account for a more complete assessment of iPhone’s elasticity? (http://theblogpaper.co.uk/ article/business/31may09/price-elasticity-demand-iphone)
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