Laptop Economics Writing Assignment: Factors Influencing Demand (Research Paper Sample)

Laptop Economics
Student’s Name
Institutional Affiliation
Laptop Economics
As a student, one of the devices used on a daily basis is the laptop. It is a multipurpose device that facilitates learning in an indispensable manner. Its market is broad due to its many purposes. Virtually all professions make use of the laptop from Engineers, Medicine to architecture and even accountancy (Eizenberg, 2014). Thus, the economics surrounding this product are interesting especially in reference to the substitution threat that it faces from the smartphone technology.
Factors influencing demand
The demand for laptops has been increasing over the years. Nonetheless, this increase has been noted to be slow and disrupted mainly because of introduction of smartphones. Deng, Babbitt and Williams (2011) established that the demand for laptops was on the rise in 2005 onwards but dwindled sharply when smartphone accessibility and applications increased from 2006. This innovative nature of smartphones plus the conversion of apps used on laptops to be usable in smartphones posed a serious threat to the demand for laptops. A study by Want (2009) found that today there are few things that a laptop can do that a smartphone cannot do compared to the period before 2005. In fact, the author bravely states that smartphones today can do more than a laptop can do which has adversely affected the demand for laptops. Thus, one of the factors that has affected the demand for laptops is the obsolescence of the laptop market utility.
Another factor is the price. Laptops are typically expensive for the average person or rather they are costly than the next substitute which is a smartphone. For this reason, smartphones have increased in demand over the years at the expense of laptops. In addition, the portability and ease of use of the smartphones in the same capacity as smartphones has led to increased demand in smartphones as many people can access the internet, the mail and even office documents through their smartphones (Want, 2009). These were roles that were reserved for laptops in the past but not anymore. Therefore, the convenience that smartphones offer has threatened and reduced the demand for laptops.
Factors influencing supply
The supply of laptops is also affected adversely in two main ways. Firstly, most tech stores prefer to stock smartphones rather than laptops because of the turnover the smartphones offer to the business. In fact, a study by Eizenberg (2014) found that for every laptop sold, five smartphones are sold. Thus, most managers prefer stocking more smartphones than laptops adversely affecting the availability of laptops. Secondly, laptops’ prices make them inaccessible to many people around the world. Averaging between $200 to $500, laptops are beyond the reach of most people. These are the two major factors that affect the supply of laptops.
Equilibrium price
The price of the laptops today has stabilized. This has happened mainly due to the influence of demand and supply. In terms of demand, laptops have become work accessories and for gaming. These are the only market niches that the devices are not in competition with smartphones. Thus, the price for the product has been maintained at a price accommodative for the gamers and professionals. On the other hand, supply has positioned the laptops in competition with smartphones. Since not many laptops are being stocked, most stores place a price that is commensurate with five smartphones as noted earlier in the turnover assessment (Want, 2009). Thus, the price is generally high than that of most smartphones but affordable to gamers and most professionals.
Changes in future
The future will does not look bright for the laptops. The rate in which smartphones are innovated is likely to render laptops obsolete in the future. The one thing that laptops holds over smartphones right now is that professional ty...