Apple Inc. (AAPL) and the Law of Demand | InvestorPlace

Suppose that as the Christmas shopping season approaches, Apple ramps up phone production. It could lower its price and begin taking preorders for $1,000.

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Again, the phones would be available on a first-come, first-served basis.

Maybe by March or April of 2018, Apple’s inventory will finally be sufficient to meet customer demand even at a price of $800 for an iPhone 8. Now, all the folks who could not afford to pay hundreds of dollars more – or simply refused to pay so much – would finally buy the phone.

As a long-time investor in AAPL stock, I would not want the company to take my word that it could make a much larger profit by following this pricing plan. Maybe they’re already planning to survey tens of thousands of potential customers to determine how much they would be willing to pay to get their iPhone 8s well before Christmas.

Apple might not be able to repeal the law of demand, but the company can definitely profit from it.

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Apple Inc. (AAPL) and the Law of Demand | InvestorPlace.