Mobile Phones And The Mobile Phone Industry

- The smartphone industry is very capital intensive due to high research and development (R&D) costs and expensive manufacturing facilities. This raises the barrier of entry and makes it difficult for small companies to enter. Many of the firms that compete in this industry have existing long-term contractual relationships with mobile carriers and benefit from their significant brand equity. These companies also have a great deal of knowledge and experience through economies of learning, which gives them a major cost advantage over smaller entrants. New entrants will have difficulty getting carriers to adopt their phones because many carriers are already in profitable deals with the large mobile phone manufacturers.

Trends in the market include the growing number of people within the 15-29 age range. Also, phones are being used for much more than just calling, other functions like texting and music playing capabilities have dominated much of a user’s data usage. As for market characteristics, the mobile industry has reached almost 50% penetration with about 130 million subscribers, and reaching its maturity. The cost structure has been very confusing for consumers, with hidden fees, overcharges, and lacks to reward users who do not use their plans to the max. And finally, channels include all service provider stores and retail consumer stores, for example, Target, Walmart, and Best Buy.

CTIA – The Wireless Association reports that the number of text messages sent in the US rose from 362.5 billion in 2007 to an astonishing 2.19 trillion in 2012. In light of

Over the mid-year, Apple was offering a little more than half of the worldwide premium cell phones, and Samsung was offering just shy of 25%. By December 2016, those figures had developed to 70% and 17%, separately” (Richardson, 2017).

In the opinion of Baumol and Blinder (2011, p. 235), "monopolistic competition is a market structure characterized by many small firms selling somewhat different products." The authors in this case further note that the output of each entity is small in comparison to the market's aggregate output of competing but closely related products. With that in mind, the mobile phone market exhibits some key characteristics of monopolistic competition. In this market, customers in need of mobile phones are presented with a wide range of options to choose from. For instance, a customer who enters a mobile phone handset shop has the option of purchasing a Motorola, Nokia, Samsung, Blackberry or even an LG handset. All these products despite being closely related are also largely differentiated. As Tucker (2010, p. 268) notes, "the key feature of

The U.S. cell phone industry quietly launched in 1983 as an exclusive product targeting affluent professionals with $3,995 of disposable income to spend on a cell phone (Wolpin, 2014). While sales exceeded the industry’s initial projections due to an unanticipated ‘cool factor’ associated with having a cell phone, sales were pedestrian due to a limited number of cell phone providers selling the service in major metropolitan areas. Therefore, the industry slowly grew to 340,000 subscribers by 1985 (CTIA, 2016). In 1992, with the advent of 2 year service contracts, cell phone service providers began selling cell phones for a penny to accelerate adoption of the technology. Subsequently, by the end of 1995, the number of cell phone subscribers

Recently a growing form of communication for organisations. It is time efficient way of sending information to a large number of reciepntants. It is cost effective and more likely to reach the receipatnt as they are likely to check their mobile telephone several times throughout the day. Unfortanaley text messages can be open for interpretation of tone or mood. It can also be inappropriate for some organistation communication.

Technology in our country is constantly evolving. One of the most popular technologies used every day by billions of people are cellphones. Cell phones have created a huge impact in the way that we communicate, research, and spend free time.

In this following report I will discuss the phone industry and analysed it in great detail. I will analysis the market structure and try and understand why the mobile industry falls to heavily oligopoly structure. I will highlight all the structures, however I will discuss in detail how, for example Vodafone can be incorporated in the porter’s five forces method to show how the mobile industry has devolved over the years and to understand if consumers are driven by the actual technology of the phone but if it driven more by style.

The market covered in the telecom industry are mobile phone, fixed line, broadband, internet etc. by the above figure we can say that the growth rate of telecom industry is positive 33 % from 2006- 2013. And future it will be increase more because it’s now leading industry in the world.

This report investigates the smartphone industry in the United Kingdom and Germany between 2007 to 2015. I will identify which country is performing the best for the industry and will make a recommendation on which country the business start-up in. I will consider the industry by comparing the companies with the country’s market and state which one had done better. I will explain which PESTL factors influenced the industry for both countries and will explain why the economic recession impacted the industry.

In the second quarter of 2007, Motorola had shipped 35.5 million mobile handsets whereby Nokia shipped 100.8 million handsets. Nokia emerged as a leader in the global mobile phone industry, holding a market share of 38.0 percent, by the 2nd quarter of 2007.

The industry analysis of the Smart Phone Industry will be performed by using the Porter?s 5-forces Model. The industry structure will play a critical role in the analysis with the bargaining power of buyers, bargaining power of suppliers, rivalry among existing firms in the industry (competitors), threats of new entrants and substitutes being assessed. These aforementioned five players affect the profitability of firms in an industry. When the forces drive prices down or costs in an upward direction, they threaten the profitability of firms in the industry. An industry analysis of the smart phone industry for Apple Inc. in 2015 is performed below.

When cell phones were first introduced, they were large and expensive. In 1983 the first truly mobile phone was released by Motorola. It was the Motorola DynaTAC 8000x. To some people it is known as the “Zack Morris phone.” He used this phone on a regular basis in a popular television show called “Saved by the bell” which took place in the late 80’s to early 90’s. It was an extremely large device compared to the ones we are used to now and it was only designed to make phone calls. It was not often used for personal use like today. “They were primarily used in the sales and business world, but not for personal use like you see today” said Kreg Jones, an industrial designer and industrial design instructor at the Art institute of Philadelphia (“The History and Evolution of Cell Phones”). Initially cell phones could only make phone calls. In later cell phones eventually voicemail was added, but the main feature was still talking. Eventually companies realized the potential to integrate other technologies into the phones.

The intensity of rivalry is also a great threat for iPhone. Protection of the Korean mobile phone manufacturers helped the local companies like Samsung and LG to sell together about 90% of mobile phones in the country. With the opening up of the industry, competition will