White iPhone 4 – A Lesson in Economics

White iPhone 4 – A Lesson in Economics

Maybe you remember, or maybe you don’t, but when the iPhone 3GS was released, the white version of that model couldn’t be given away.  Why? Simple. Everyone wanted the black iPhone 3GS.

So how is it now, with the white iPhone 4 being withheld from the marketplace for one reason or another, that the entire world is talking about the white iPhone 4, and of course everyone wants the white iPhone 4?

Is it because all of a sudden the utility of a white iPhone 4 is so high?

I don’t think so…

I think that everyone now wants a white iPhone 4 simple because of one reason – it’s not available to be purchased.

With the white iPhone 4 being not available, yet the black iPhone 4 is available for purchase, I believe that a psychological effect is creating a high demand for the white iPhone 4.

Withhold a product from the marketplace, give people a taste of a similar version of the product, and suddenly the demand for the product withheld will sky rocket.

And the demand skyrockets simply because people will want to buy something, and even pay a higher premium price, simply because they aren’t able to purchase it right now.

In my opinion, the white iPhone 4 is simply a lesson in basic economics – supply and demand my friends, supply and demand!

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