High-priced Apple Bubble Burst: Why the apple price is so high?
Last year (2010) fall , Apple price was skyrocketed , and recently, Apple prices are greatly reduced, as the Apple price bubble burst.
Cao County, Heze, Shandong, has a large cold storage , in the past most of the stores were garlic, onion and other vegetables , because of the promising future market in last fall , many fruits and vegetables deals purchased a large number of Apple. But recently , Apple prices do not rise but greatly decline.
Last year, purchase price is too high, many people reluctant to sell and store in their existing cold storage after the acquisition , resulting in this year ( 2011) Apple’s large backlog , supply and demand caused the price bubble burst.
Look at these two pictures, that is the scene that people hoard for speculation. So many apples there, whereas the markets own fewer apples.
However, after the bubble burst, dealers must bear the expenses and cost. Actually, they stew in their own juice. On the one hand, the regulators shall make relevant laws and rules for such affairs; On the other hand, dealers themselves shall take notice of it.
The burst bubble of Apple just likes the housing prices. If one day, the real estate is burst, the damge will be huge. However, after shuffling, perhaps more and more Chinese people can own their houses and live a more pleasant life.
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