Mobile Phone And Wireless Data Service

1329 Words Jan 19th, 2016 6 Pages
Cell phone and wireless data service are the leading complements for smartphones like the Galaxy S. Leading network providers in the U.S. are AT&T, Verizon, Sprint and T-Mobile. These service providers give consumers access to their networks (equipment and services) that allow smartphone devices to make and receive phone calls and access the Internet; sell and lease devices; and provide technical support to help consumers use and troubleshoot their devices.
In addition to wireless services, smartphones have been the catalyst for two new industries: accessories and apps. Wired and wireless headphones, cases, screen protectors, mounts and stands and chargers are some of the most popular accessories that allow users to make the most of their devices and to minimize damage from drops, spills or other accidents. Apps are the programs that allow consumers to use their smartphones do everything from play games, to draft and edit documents, to track their physical activity and key health data.
Demand Elasticity
At the time of its release, the Galaxy S had a retail price between $600 for the 32GB model and $885 for the 128GB model. As with most luxury items, the demand for the Galaxy S among the general public is elastic, meaning that an increase or decrease in the price of the device would have a significant effect on demand. Using reported pricing and sales figures for the 16GB S4 and S5 (no contract), we can determine the Price Elasticity of Demand for the Galaxy smartphone:…
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