Apple Inc. : The Smart Phone Market

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Apple Inc. entered the smart phone market in 2007 with the launch of a basic 4GB and 8GB iPhone. Since that time, the iPhone has revolutionized the smart phone market and redefined the idea of meeting consumer demands. Apple has been introduced a new model of its successful iPhone each year and consistently achieves higher market share than its competition. This essay examines the Apple iPhone from an economic perspective. It will explore the supply and demand of the iPhone and examine the rationale behind Apple’s cost structure and production costs which have allowed the iPhone and Apple to thrive in the oligopoly of the smart phone market.
Apple is an innovator and producer of consumer electronics. The firm initially produced personal computers and software under the title of Apple Computer, Inc. In 2007, the CEO and co-founder Steve Jobs, announced that the company would be rebranded to simply Apple Inc. This move was an indication of Apple 's desire to shift from primarily manufacturing personal computers, to mobile phones and other consumer electronics. Apple also revolutionized digital music delivery and consumption through their iPod music players and iTunes online music store. Later, Jobs became more focused on mobile devices. He unveiled Apple’s new iPhone in January 2007 at the MacWorld Conference. Jobs described the iPhone as: “… a revolutionary and magical product that is literally five years ahead of any other mobile phone on the market today.” (Apple Press

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