If the price of a popular smartphone decreases, what is the likely impact on its demand and supply?

When a smartphone’s price falls, buyers are more willing to purchase it, so the quantity demanded rises because the phone becomes cheaper and more attractive. The law of demand says that as price drops, the quantity demanded increases. On the supply side, a lower price means producers earn less per unit, so they are less inclined to produce as many phones; the quantity supplied typically falls. For example, if a phone drops from $800 to $600, more people buy it, but factories may make fewer units because the profit margin shrinks. Thus, a price cut usually boosts demand but reduces supply.