Economics Essay: Anker Power Core 10000 Power Bank and Demand Behavior

Anker is a Chinese company that specializes in developing charging devices. The company was established in 2011 by Steven Yang in the U.S. and later shifted to China. Initially, the company focused on the development of replacement batteries for laptops but later shifted to battery chargers and power banks. The company has had huge success from its innovative technologies that have rivaled companies such as Apple and Samsung. The focus of the company is on the development of power banks that can charge mobile devices fast. Anker Power Core 10000 Power Bank is one of the products produced by this company which has become a hit among the users.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Anker Power Core 10000 Power Bank is an exclusive charging device available to users to charge their mobile devices and other technological gadgets. The product is portable with a compact high capacity offering safer and faster-charging experience. Power Core has a capacity of 10,000mAh with an output capacity of 8,000mAh (Anker, 2018). The product has been built with PowerIQ and VoltageBoost technologies that increase charging time (Usman, 2016). The power bank is small in size, has one charging port and is slightly light compared to other products in the market. The product has power indicators, four in number that serve the purposes of indicating when it is full and when to recharge. The safety features of the product have been enhanced with surge and short circuit prevention.

Power banks have become popular among smartphone users due to its charging abilities. Travelers and individuals engaging in outdoor activities use power banks to recharge their phones and tablets. Different companies are producing power banks rivaling Power Anker Power Core in the market. RAVPower and Poweradd Pilot are the two products in the market that are substitutes to Anker Power Core. These products have been improved and have higher capacities compared to Anker (Usman, 2016). These products are also popular in the U.S. and iPad, and iPhone users prefer these power banks to recharge their devices. Even if Anker has a superior product under its products, Anker 10000 offers the right charging solution to millions of users with limited smartphone use.

Power bank market has increased recently with the increase in the use of smart devices in the world. The number of people using mobile devices has increased, and the increase has come with challenges of power efficiency within the gadgets. Companies such as Anker have engaged in market research to identify the pressing needs of power bank users. Regarding product development, new technologies have been incorporated in power banks to improve charging and discharging efficiency. The PowerIQ technology and VoltageBoost technology are the two current technologies used by companies to improve the charging speed of power banks ((Usman, 2016). Power banks have also been reduced in size improving its portability. The components used in building power banks have been enhanced to improve safety concerns such as power surges and short-circuiting. Sales statistics of power banks is on the rise with majority users going for efficient and portable products. Established companies have been able to tap on the demand to improve their sales.

Determinants of Demand

• Price
• Income
• Price of RAVPowerPrice of Leather Pouch
• Level of technology use

Price

The law of demand anticipates a drop in the quantity demanded when the price rises. For the case of Anker Power Core 10000, an increase in the price of this product will lead to a reduction in its quantity demanded. Power banks are luxurious products and people purchase them if the prices are favorable. When the price of this product increase, consumers will walk out of the market. Any rational consumer would not go ahead to purchase the product since there are other alternatives for powering mobile devices (Bohi, 2013). Other consumers in the market will go ahead to purchase the product as they will relate an increase in the price for an improvement in quality. Even if the product might show signs of inelasticity, the majority will shift from purchasing the product.

Income

When all factors are held constant, an increase in the level of income leads to an increase in demand (Rios, McConnell & Brue, 2013). The power bank is a luxurious product and when the income of the consumer increases, they will go ahead to purchase luxurious products since they can afford. Reduction in income reduces demand for the product and consumers will shy away from purchasing the product.

Price of RAVPower

RAVPower is a substitute product to Anker Power Core, and an increase in its price will lead to an increase in the demand of Anker. Substitutes are products with elastic demand where a decrease in the piece of one leads to a decrease in the price of a substitute (Mina Lahr & Hughes, 2013). Price is a significant factor in making purchasing decisions, and consumers will always go for a cheaper product of uniform quality.

Price of Leather Pouch

The leather pouch is a compliment which is bought to provide cover to the power bank. When a consumer buys a power bank, he will purchase this pouch to store the product and improves portability. When the price of such a compliment increase, the demand of the power bank is affected negatively (Kalecki, 2013). Compliments negatively affect demand and consumers might opt away from purchasing the product unless the price of the compliment reduces.

Level of Technology Use

Technology is crucial in improving efficiency and meeting client's needs. Products that have incorporated the latest technologies receive a higher demand compared to those with obsolete technology. Anker Power Core will anticipate a higher demand owing to its latest technologies that improving efficiency in charging and discharging.

In conclusion, Anker Power Core offers great benefits to users due to its superior charging abilities. The technology used in the product, size, and enhanced safety appeals to most clients. The product has got high demand since it is tested and proved. Going forward, the company needs to invest in research to improve the capability of the product as well as making it affordable in the market.

References

Anker. (2018). PowerCore 10000: The Compact High-Capacity Portable Charger. Retrieved from https://www.anker.com/store/powercore-10000/A1263011

Bohi, D. R. (2013). Analyzing demand behavior: a study of energy elasticities. RFF Press.

Kalecki, M. (2013). Theory of economic dynamics. Routledge.

Mina, A., Lahr, H., & Hughes, A. (2013). The demand and supply of external finance for innovative firms. Industrial and Corporate Change, 22(4), 869-901.

Rios, M. C., McConnell, C. R., & Brue, S. L. (2013). Economics: Principles, problems, and policies. McGraw-Hill.

Usman. (2016). Review: Anker PowerCore 10,000 Portable Charger. Charger Harbor. Retrieved from https://www.chargerharbor.com/review-anker-powercore-10000-portable-charger/