As stated in an article called ‘UAE consumers spending...

As stated in an article called ‘UAE consumers spending more on electronics’ from Gulfnews.com (April 21, 2014) the amount of spendings on electronics in UAE has seen a significant increase from Dh3000 last year up to Dh4875 today. This data was presented by one of the major UAE electronics retailers, Plug-Ins Electronix, after surveying around 2000 people online. 94% of the people that took part in the research stated that they made an electronics purchase during the year. The majority of the purchases were smartphones, leading with 66%, then televisions and tablets with 40% each and laptops with 38%. A survey conducted by Cisco’s Middle East also showed that smartphones are the most desired devices among the 18 to 34 years of age†¦show more content†¦In economics the demand of any good is â€Å"the amount of the good that buyers are willing and able to purchase† (Mankiw, 2012). When considering the demand of smartphones there are several determin ing factors that correspond with it. One of the key factors is income. As smartphones are normal, or even luxury goods, then there is a positive correlation between consumers’ income and the demand for the product. In other words, when consumers’ income rises the demand increases; when income falls, the same happens with the demand for the product. â€Å"Employment is rising and wages are starting to trend upwards† (The National, 2014) - this fact results in a right-shift of the demand curve of smartphone market on the whole as it shows in Figure 1 below, where D represents the initial demand and D’ is the demand after increase of income. If we take into consideration certain brands, for example Samsung and Apple that were mentioned earlier, not only income but also such factor as price of a substitute good arises. There are no particular substitutes for smartphones in general, but the smartphones themselves play a substitutive role inside the market. If the income of the customers is high, then they can afford themselves to purchase rather expensive phones, iPhones or high priced models of Samsung for instance. People with lower income that will to buy a smartphone can allow buying low priced ones. According to law of