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Price Elasticity in Samsung Demand Analysis

This document is an economics assignment analyzing the demand for Samsung's Galaxy S smartphone series. It discusses the history and prices of phones in the S series. It notes that while the original Galaxy S launched in 2010 for $399, recent models like the S21 launched with prices between $799-$1199. It describes complementary goods for Samsung phones as charging adapters and earphones that some models require separate purchases for. It identifies key competitors for Samsung as Apple, Vivo, OnePlus, and Oppo. The document analyzes the S series as a normal good, as demand increases with income. It states the S series exhibits price elastic and income elastic demand, and that Samsung and Apple phones act as substitutes with a positive

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103 views10 pages

Price Elasticity in Samsung Demand Analysis

This document is an economics assignment analyzing the demand for Samsung's Galaxy S smartphone series. It discusses the history and prices of phones in the S series. It notes that while the original Galaxy S launched in 2010 for $399, recent models like the S21 launched with prices between $799-$1199. It describes complementary goods for Samsung phones as charging adapters and earphones that some models require separate purchases for. It identifies key competitors for Samsung as Apple, Vivo, OnePlus, and Oppo. The document analyzes the S series as a normal good, as demand increases with income. It states the S series exhibits price elastic and income elastic demand, and that Samsung and Apple phones act as substitutes with a positive

Uploaded by

Dipti
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

ECONOMICS

ASSIGNMENT

TOPIC -
DEMAND ANALYSIS
OF SAMSUNG

NAME- MAYANK MOHIRE


BBA GENERAL
SEMESTER – 1
The Samsung Group is a South
Korean multinational manufacturing c
onglomerate headquartered
in Samsung Town, Seoul, South
Korea. It comprises numerous
affiliated businesses. Samsung was
founded by Lee Byung-c.

this case study we will be having a


brief demand analysis of S series. The
series consisted initially
of smartphones and the first device,
the Samsung Galaxy S, was
announced in March 2010,the latest
smartphones in the Galaxy S series
are the Samsung Galaxy S21

. The 1st phone of the S series i.e.


PRICE
The 1st phone of S series i.e.
galaxy S was launched with the
price of $399

But the recent S Series


smartphones(S21) were launched
with a whooping price range
between 799 to $1199.
Samsung has been maintaining its
legacy and dominance over the
global market through its
extraordinary features and designs.
COMPLEMENTARY GOODS

Samsung smartphones
complimentary goods can be its
own goods. In recent times as we
know Samsung has been removing
its charging adaptors and earphones
from it's a smartphone
So to get the job done customers
have to buy separate charging
adapters to charge their
phones. Also, Samsung has been
removing 3.5 MM Jack from their
latest phones Which entitle the
customers to purchase Bluetooth
speakers or earphones separately.
SUBSTITUTE GOODS

Samsung faces serious competition


from its rivals like Apple, Vivo, One
plus, Oppo, etc.
NORMAL GOODS OR INFERIOR GOODS

What are Normal goods?

A normal good is a good that


experiences an increase in its
demand due to a rise in
consumers' income.
Normal goods have a positive
correlation between income and
demand.
Examples of normal goods include
food staples, clothing, and
household appliances.
The S Series of Samsung is treated as
normal good because it has created a
Standard that even if they increase their
prices Customers would buy it because
the phones themselves are a status
symbol.
PRICE ELASTICITY OF DEMAND

Samsung’s products exhibit price-elastic demand


because their demand varies, according to the
market prices.
INCOME ELASTICITY OF DEMAND

The products of Samsung face positive income


elasticity of demand because their consumption
increases with an increase in the level of income
among its customers.

CROSS ELASTICITY OF DEMAND

Samsung and Apple are substitutes since they are


used to Serve the same purpose. If two goods are
Substitutes, their cross price elasticity of Demand
is positive meaning that the demand For one
increases as the price of the other Increases and it
decreases as the price of the other decreases

THANK YOU

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