As the price of microprocessors decreases then the cost of production of iPhones decreases which results in rightward shift in the supply curve of iPhones with the same demand curve of iPhone such that the price of iPhone decreases and quantity of iPhone increases in an economy.

In the above diagram, as the supply shifts from S0 to S1 then the price decreases from P0 to P1 and Quantity increases from Q0 to Q1. The new equilibrium is achieved at point E1.

please see the attached file for the complete solution