ECO2101 Microeconomics – CA1 Instruction

Article 1

The article sheds light over the launch of new Models by Samsung. Samsung is a renowned South-korean multinational manufacturing firm that is headquartered in Seoul, Korea. The company has recently launched two new 5G models of the phone which are Galaxy A14 and Galaxy A23. Both the variants are in 5G (Indiatoday.in, 2022). The company is always competing with the new variants that are launched by its competitors such as Apple, Xiaomi, One Plus and others as well. The models launched by the company come in different variants and these are also manufactured according to the requirement of the consumers.

The costs of the Phones are in the middle range, which means that they are not too costly and they can be easily afforded by the consumers. The opportunity cost is the benefit of producing one item as compared to the other. The articles indicate that the company is aiming to increase the sales by managing the total and the overall costs that have been incurred for the production process. The PPF curve and the opportunity cost of the new models is derived from the total demand of the product in the market respectively. The curve tends to be straight line and it increases as and when the sale of the models increases.

Reference:
Indiatoday.in, 2022. Available at:
https://www.indiatoday.in/technology/news/story/samsung-galaxy-a14-and-galaxy-a23-5g-phones-launched-in-india-price-starts-at-rs-16499-2322268-2023-01-16

Article 2

The second article is regarding the demand and supply of Samsung phones. The company is one of the key pioneers in the area of smart phone. The company has brought multiple innovative ideas that are being copied by the other firms as well. The articles indicate that in the present time, the demand of smart phone has increased significantly. The company is also increasing its supply to match the demand of the phones. The key issue that the company is facing at the moment is the cost and the price at which smartphones are being sold in the market (Thehindu.com, 2022).

In Nov 2021, the sales of the company declined to 75% due to the increased sales of the competitors. The reason behind the decline is the changes are that the companies like Xiaomi and Huwaie and Redmi are selling smart phones, in fewer amounts. It can be seen that the new phones are coming with multiple facilities which can also be found in Samsung, but it is in reduced cost. It is much more affordable to the consumers. The competitors are making the phones in high resolution as well, which has impacted the looks and the performance of the smartphones as well. Due to this, the company is forced to reduce the price of the phones and sell their newly released variants with a touch of slightly higher innovative technology in affordable costs. This has aided the company in increasing its supply to different countries and even fulfilling the requirement and demand of the customers.

Reference:

Thehindu.com, 2022. Available at:
https://www.thehindu.com/business/Industry/samsung-electronics-sees-profit-decline-on-weak-server-chip-demand-after-strong-q3-earnings/article32970305.ece

Article 3

The model Galaxy A23 is highly demanded by people. The demand of the phone has surpassed the expectation of Samsung. The shift in the demand of the model has led to further sale of the product in Europe. The article presents that the features of the newly launched phone by Samsung is being liked by the people in Europe, as primarily, the cost of the phone is quite cheap as compared to its counterparts and the services that are being offered in the price range (Gizchina.com, 2022). There has been a shift in the demand of the model and the shift is in bigger size. The company has to ramp up the production of the model.

One of the key issues that can be further seen in the coming future is that Samsung might reduce the price of this model due to its surging demand. The increase and shift in the demand, would also lead to shift in the supply curve. This would be beneficial for the company in the long run.  The company is able to hit the Market Equilibrium due to the change in the demand and the supply of the product. The company is able to recover the manufacturing costs and gain higher revenue in this model.

Reference:

Gizchina.com, 2022. Available at:
https://www.gizchina.com/2022/05/27/samsung-galaxy-a23-5g-will-be-launched-in-europe/

Article 4

The company has been able to increase the overall profitability through the sale of new models in the Market. It can be seen that the company is not facing any inelastic demand and it is also able to manufacture the number of products as the demand of the goods are high in certain parts of the world. The articles indicate that Samsung has been able to increase its overall profitability through segmentation of sales of particular models (Znet.com, 2022). For instance, the model of Galaxy A23 has been quite a hit with the people in Europe and through the increased sales, Samsung was able to further generate higher profits.

According to the news, Samsung made revenue of $ 240.71 Billion with staggering increase from 2021.

Reference:

Znet.com, 2022. Available at:
https://www.zdnet.com/article/samsung-records-highest-revenue-in-2021-with-chip-business-leading-profitability/

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