IPhone is a product of Apple Inc. It is a great product to use on daily basis and is considered as one of the best qualities of phone products across the globe. Apple Inc. company maintains a monopolistic competition market structure to keep up with the massive competition of smart brands around the world. The main characteristic of the marketing structure is the fact that the company has a well-laid product differentiation structure (Stephen & Josh, 2020). Apple has iOs for all its products, including the iPhones, implying that persons acquiring their items will have a similar product with same features, which are customized to meet the needs of the user. The reason for operating in this type of structure is due to its business models and target market. Such an organization as Apple has no barrier to entry into the market (Stephen & Josh, 2020). These structures help in ensuring that the customers differences are embraced. Apple Inc. sets its price because each company produces a unique product. As a result, the demand curve has been on the increase.
The demand for products and services has been low due to the COVID-19 pandemic. Many stores have closed in the US ever since the pandemic started. There has also been a decline in the supply of goods and services in the market, due to the closure of factories both in the U.S and in nations such as China (Fernandes, 2020). Reduced operating hours, government-imposed travel bans, quarantines and the public fears over contracting coronavirus in public spaces have led to less foot traffic, which has negatively affected the sale of products. Both the supply and demand curve has been dramatically affected by the pandemic.
Figure 1 Impact of coronavirus on aggregate demand (Shefrin, 2020)
Figure 2 the supply-demand doom loop (Shefrin, 2020)
Figure 3 Effects of Corona on the Global Economy (Source: Author)