Demand of Smart Phones

There are many competing brands of smart phones and Samsung has reported a decline of profits in 2014. Information from GSM arena shows than Samsung released 54 new phone models in 2014 , compared with 24 by HTC , 11 Motorola and 2 by Apple, leading to increased production costs and lack focus on a specific customer segments thereby losing some of its competitive advantage (GSM Arena , 2015).The lack of popularity of its own OS (Tizen ) and dependence on Google’s Android platform makes it vulnerable on google to develop an “ecosystem”. There are component integration issues as well as loss revenue from potential App sales (Strategic Mangement insight , 2015). Negative publicity from litigation due to patents are likely to continue as technology patents are vague and Samsung with is large portfolio is likely to infringe on some of the patents (Tibken, 2014).

“Samsung is one of the leading brand names founded in Korea in 1969. It is the global leader in telecommunications, digital media technologies and semiconductors. In the present proposal we have selected Samsung brand in comparison to Apple Smartphone’s. With the advancement and passage of time it has gained significant position in market and has become a strong brand even more profitable than highest revenue brand Apple.”

Apple is the largest company in the field of smart phones and Apple depends on a marketing mix suited to the wishes and ambition of all customers.The strategy is to set a high price for the new product to harvest the maximum returns of layer after layer of market segments that welcome a high price, and the company is achieving less sales but more profitable. Apple maintains its value in the case of resale for long periods even after the issuance of a new phone, a small proportion to suit the needs of the market after I reached the stage of saturation in a way that ensures the preservation of the external image of the company (in my country not to insult the product).Samsung is relying on a completely different policy, the Penetration strategy

Samsung also has a strong customer loyalty to its brand which can be a strong barrier to the new entrant. According to the (Anonymous, 2009) Mikah Martin Cruz,marketing director of Samsung Electronics UK claims that nurturing the customers brand loyalty to samsung is the main pillars of marketing direction. The threat of substitute for Samsung may be due to the similar phones with more advanced feature that are usually of competitor brands like the Apple iphone,Huawei etc.Price also may play a role in chances of substitution when a competitor brand provides the same feature with a relatively low price. Due to the rapid growth in technology the smart phones are likely to be substituted more advanced technologies. (Boult, 2015) claims that smart phones may not exist in another five years as consumers are getting interested in Virtual Reality VR.The power of consumers is high as there are varieties of smart phones available in the market. In case of Samsung too consumer has the power to bargain and have choices of different varieties of phone with same features and relatively low prices. The Power of supplier is low for Samsung because Samsung has its own supplier for most of the components. Samsung supplies its own raw material and also manufactures its own processor and its components.

The method which can give some information in estimating demand of a product that hasn’t yet come to market is:

Cell phones in the U.S. have changed us. They have changed us mentally and physically. This has also changed some of our history. Cell phones have also made some problems. Some of the effects that this has caused are effects on the brain, communication, and social.

Samsung products range from mobile devices, TV, audio and video, home appliances, cameras, PC and peripherals and print solutions (Samsung 2014). This essay will predominantly look closely at Samsung’s mobile phones market.

Estimate the demand curve assess possible demand for product. A larger demand usually reduces price.

The pace of technological advancement is speeding up. For example, when cell phones were first available to people the most they were able to do was make calls and text. Now with these advances in technology cell phones have evolved into smartphones with different functions. However with every step forward in technology, society takes a step back to learn how to adapt. Currently, people should be getting used to the most recent evolution of smartphones, however they’re too distracted texting, tweeting, and instagramming pictures of pointless things. Although uses of smartphones might seem harmless, theres a problem. People’s overuse of smartphones make society feel okay with behavior that is harmful to health, relationships, and the feeling of being public. Which is why there should be more people educated with smartphone etiquette.

At first, I was going to analyze and write about smartphones, however I found it more efficient to write also about a particular smartphone to narrow it down from such a broad technological artifact, such as answering who designed it, what for, what their position and the impact they want to have on society was, and their future visions. Therefore, I chose the iPhone as the centerpiece of smartphones I will be analyzing and an emphasis on applications. However, some of this information is relevant and interchangeable to all other smartphones. IPhones and smartphones allow us to access constant information and offer it the way we want it, as it is completely customizable now to fit our learning style. They keep us organized, send information to us in different ways, even shape and offer solutions such as for politics, economies, problems whether individual ones or globally. Smartphones capitalize on shared knowledge and has opened the door to inventors and those who have the knowledge to make our world a more connected place and lives easier by sharing it with us to use. We are able to communicate with other people far off, through space-time compression or shrinking-space to gather news and information.

Smartphone market is fast-moving and very high competitive due to intense competition between two big smartphone producers, Apple and Samsung. At the beginning, Apple dominated this market solely by introducing a new innovative type of smartphone by Steve Jobs that has revolutionized people lifestyle and mobile industry. A few years after launching iPhone, a new fast following competitor, Samsung came into this market, and their sales have outperformed Apple from the year 2011 (According to Chart A1 in Appendix). In term of developing their product, Samsung has created its products by following Apple’s technology since the beginning of producing its smartphone, therefore there are many patent lawsuits between them. Since Steve Job passed away, Apple has continued to develop its core competence, which is an innovation of new type of smartphone that could help them to take back their market share from its rival, Samsung. Nonetheless, the competition between Apple and Samsung will still continue intensively in the future.

In addition, Norwegian smartphone consumers regular update or buy a new smartphone. These results in a rapid change in smartphones for customers but there are more loyalty within iPhone users than other brands even to the point to blind love (Forbes, 2014). The author has chosen to set the level to medium based the system of subscription based sales that results in high switching cost (Marketing magazine, 2014), there are no substitutes for a smartphone as mentioned earlier and buyers are medium price sensitive. However, since Norway has such a high smartphone penetration there are many buyers for the smartphone

The global market of smart phone is increasing according to the need of the consumer

The worldwide smartphone market grew 25.3% year over year in the second quarter of 2014 establishing a new single quarter record of 301.3 million shipments, according to data from the International Data Corporation Worldwide Quarterly Mobile Phone Tracker. The global smartphone market has witnessed extraordinary growth in recent years, with shipments rising by 40 percent in 2013 to exceed the 1 billion unit threshold and $266billion in value. CCS Insight forecasts smartphone shipments of 1.89 billion units by 2018.

Smart phone allows us to communicate with the people who we wish to stay connected with. Nowadays due to the over usage of cell phones we often find ourselves wasting too much time on it, obesity growing in teenagers, distant relationships with people etc. after researching we found that the increasing usage of cell phone has a great effect on students studying in high schools or collages such as their behavior, dropping grades etc. Concerns about dependency on mobile phones corresponded to intensity of usage. The study is partial towards some distinctions between countries reflect variation in available technology, while others may result from cultural factors.