As stated in an article called ‘UAE consumers spending more on electronics’ from Gulfnews.com

Besides, there are always many new entrants enter the market with the flow of labor and capital (Laudon, 2014, pp. 124). Although the requirements for the entry to the mobile market is relative higher than others, the number of new entrants are considerable while customers are more selective. As a result, those companies like the T-Mobile in this case that are lack of competitive advantages will be omitted by customers. As for the substitute, the development of entertainment tools decrease the desire of the mobile phone although there is little instrument can replace the mobile phone

The demand curve is used to show and predict future changes in the market. The demand curve is plotted on a grid with the prices on the y-axis and the quantity of good on the x-axis. The demand curve’s plots are made with lines that slope. When changes occur in the market, the demand curve will shift accordingly. When income increases the demand curve will shift outwards due to more goods being requested. Shifts can be caused due to a multitude of reasons including, but not limited to: changes in income, changes in preferences, changes in expectations, changes in the prices of competitors, changes in population and more. When the demand curve is combined with a supply curve, it can function as a multi-purpose graph that can also depict the equilibrium quantity, or the most efficient quantity of goods to be produced at the best

Changes in demand factors other than price of the good will result in a change in demand. An increase in demand is depicted as a rightward shift of the demand curve. An increase in demand means that consumers plan to purchase more of the good at each possible price. A decrease in demand is depicted as a leftward shift of the demand curve. Income is another factor that can affect demand. If a good is a normal good, increases in income will result in an increase in demand while decreases in income will decrease demand. If a good is an inferior good, increases in income will result in a decrease in demand while decreases in income will increase demand. Other factors affecting supply include technology, the prices of inputs, and the prices of alternative goods that could be produced. An advance in technology, a decrease in the prices of inputs, or a decrease in the prices of alternative goods that could be produced will result in an increase in supply. A deterioration of technology, an increase in the prices of inputs, or an increase in the prices of alternative goods that could be produced will result in a decrease in

into the market. If the size of the market increases the demand curve shifts to the right. When the IPhone first came to the cell phone market in 2007 it offered an alternative in the cell phone market, generally competition between cell makers can cause the demand for a product to drop (Yahoo Inc., 2012). As an example if Samsung were the market leader before the IPhone’s initial debut and just as many people are still buying cell phones the introduction of the IPhone caused several consumers to leave to Samsung for Apple Inc. This eventually leads to price wars were companies must the lower the price of their products and may require a cut in supply to fall in line with the decrease in demand.

The device commonly regarded as the first to realise widespread success in the smartphone market was the Blackberry. However the handset, referred to as the ‘crackberry’ (Middleton, 2007) after the feeling of addiction many users felt towards it, was quickly joined in the market by companies such as Apple and Samsung. The intriguing market seems to be constantly evolving and is still an emerging market subject to multiple market forces. Many economic theories can be applied to this market including Monopolistic Competition, Platform Competition along with Network Effects and Tipping Points. The market has seen the evolution of smartphones from a keyboard based device with closed operating systems into thin, touch

Throughout this essay I will explain why I believe that over time the smartphone market will become much more focused on the platform of which the devices are built around and less focused on the actual hardware of the phones. I will be explaining these points based on my understanding of economics thus far in my studies as well as researching to find points to support my arguments I put forward throughout the essay. The smartphone market is currently being dominated by many firms making this a monopolistic competitive market. The market became very popular in 2007 when Apple who, in August 2015, was recorded with a market share of 13.9% (IDC: Smartphone vendor market share) brought out the iPhone. Apples biggest rival is Samsung and Samsung was recorded with a market share of 21.4% at the same time who currently is the leader of the worldwide market. Google created the Android operating system (OS) in which Samsung currently uses. However, Samsung is not the only firm that uses Android OS as the platform for their smartphones, Google provides the operating system to other firms such as LG, HTC and Motorola.

A demand curve is likely to change upwards as a result of changes in a number of factors. One, if there is a move up in the price of an alternative commodity, or decrease in price of the given commodity’s accompaniment. Two, if there is a positive change in buyers’ income. Three,

We can make the conclusion that regarding to the income elasticity, a decrease of price of iPhone has a positive impact on its total revenue.

To determine the Price Elasticity of Demand (PEoD), we first calculate the percentage change in quantity demanded : [QD2 – QD1]/QD1 = [11 million – 10 million]/10 million = .1 or 10%. Next, we determine the percentage change in price: [P2 – P1]/P1 = [650-630]/630 = 0.0317 or 3%. Finally, we calculate the Price Elasticity of Demand (PEoD): (% Change in Quantity Demanded)/(% Change in Price) = (.1 )/(0.0317) = 3.1545. Since the PEoD for the Galaxy S is greater than 1, demand is Price Elastic or very sensitive to price changes.

This is not to be confused with the more-specific term brand preference, which relates to consumers preferring one brand over competing brands. If one brand is unavailable, consumers will likely choose another brand to fulfill their needs. Consumers prefer the mobile phones of Nokia and Samsung mainly due to its brand image. Nokia was considered to be the leader in the market of mobiles. It was first invented in Finland due to demand conditions of the country. Then it became the pioneer of the mobile market and so there was consumer preference towards Nokia. But it came down in the market due to lack of innovation. And the position of the market leader is taken by Samsung. The reason for it is also innovation. Samsung innovates its products periodically and the product has a high consumer preference over its mobile. And now Samsung has a better brand value when compared to

If people live in a disposable society, they will find it a curse because they will face cost problems. In particular, individuals are unfortunate to live in a consumerist society since they will have expenditure problems. First of all, people decrease their cell phone life cycle as they replace their phone with a newer model. If individuals saw there is an advertiser about the newest model with a newer design(better function) (bigger storage) which motivate people to replace it. According to a 2016 study, Global smartphone sales reached 1500 million units in 2015 from 140 million units in 2008 at a Compound Annual Growth Rate (CAGR) of 40.3% from 2008 to 2015 = The smartphone industry had gone to 1500 million units in 2015 from 140 million units in 2008. (Islam et al., 2010; Singh et al.(341))(internet).Therefore, individual waste their money on following the fashion trend so that they have less money to fulfill their essential needs. In the second place, people can

The phone starts ringing, we 're going to pick it up and when we touch it, the ringer volume smartly goes down! Yes! Today a company like Apple could make this kind of cellphone. To complicate the landscape, the smartphone is not the only device at stake; tablets and eBook readers are emerging as key components of the mobile universe. Apple is a big company with several products and services that provide along with products. Each product has its own market. It is possible to use multiple factors and combine related statistics for analyzing a company with different product.

Mobile phones were formerly created so people could take while they drove. Initially called "car phones “early mobile phones were cumbersome and expensive in comparison to today 's modern devices. Today, we 're covering the history of mobile phones and explaining where the way forward for mobile phones could be. The world’s first mobile phone was launched in 1983. It was Motorola. It was costing around four dollars and lasted for thirty minutes of talk time before dying. It was also about the dimensions of a foot long sub from Subway. Despite the phone 's large size, it was still regarded as being the most lightweight telephone ever made. For the first time in history, a person could call someone with no constraints of wire connection or lightweight phone owners. The worldwide mobile cell phone market grew 6.1% year above year in 1/4 of 2011. The idea of supply and demand explains how the price and quantity of goods sold in marketplaces are determined. The demand and supply theory is simple besides making sense. People want the best quality, and act in their own self interest at the lowest possible price. The strain between competing producers is aiming to meet the needs of the market, produces the greatest quality goods at the lowest possible prices. The development of a price of any good has to do with people willingness to buy and sell. The price of a good plainly reflects what individuals are willing to do. Number of mobile phones users in Egypt in 2013 is

Explain whether smartphone is a normal good or a luxury good or an inferior good and why?

EV: Generally, the threat of substitutes is low in the smartphone industry as there are not definite products that can readily substitute the smartphone. Consumers rely heavily on Smartphone and would not be able to find a close substitute that has all the function of a mobile phone. Furthermore, Nokia is a long and established company with many loyal customers. These people may continue to stay faithful to Nokia and are hence less resistant to change. Also, the perceived level of product