Smartphones And The Smartphone Market

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 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.

“More than three billion people worldwide now use the internet (Time), and 80 percent of them access if from their smartphones” (Smart Insights). A smartphone is a mobile phone that performs many of the functions of a computer, typically having a touchscreen interface, and much more. There is an abundant amount of smartphone brands out there in the world and while they all cost different prices, they all perform the same job. Each person uses their smartphone for various reasons, whether it’s for work or to make calls or texts. Smartphones have changed society in various ways, both good and bad. Although countless individuals think that smartphones have ruined American society, smartphones have actually benefited society because of more safety precautions, information on hand, and entertainment.

Executive summary Raising smartphone estimates Forecasting smartphones based on TCO Linking our TCO analysis to the addressable market Smartphone volumes to grow at CAGR of 26% Price point work also shows 1.1bn units long term Significant growth being seen in the low end A specific growth opportunity within China LTE could be a game changer Improving device availability LTE speeds could drive new services Coverage expansion of LTE networks Aggressive rollout plans in US and China An upgrade cycle like none before A war of ecosystems….. Apple – the iOS and Mac ecosystem Google/Android – a one trick pony? Windows 8 – what about the upgrade cycle? Developer dynamics are critical Smartphone economics Carriers have seen margin pressure Smartphone economics What can carriers do? Smartphones – winners and losers Apple scope for share gains exist on multiple fronts Samsung – a strong second Nokia – heading for third position in smartphones Multiple Android vendors may struggle HTC – still bleeding share Motorola Mobility/Google – losing steam in the US Sony – change of

Worldwide demand for Smartphones was robust as a result of the availability of high-speed wireless networks, mobile access to corporate intranets, and the broad acceptance of e-mail and text messaging for both business and personal communications.  The Smartphone industry was projected to grow from 10 percent of the global mobile market to 30 percent over five years. The growth is clear when considering in 2007 that the US enjoyed a 100% increase in user numbers with a 53% increase worldwide. Sales of units are predicted to be 500 million for 2008 and 2009 globally.

In the most recent market analysis from the NPD Group, iOS has assumed control of 43 percent of smartphone sales. The analysis further shows the market for basic phones has dwindled and that the cell phone market is fast becoming a smartphone market. The demand for anything other than smartphones is evaporating. This push toward high-end smartphones is helping not only Apple, but also Google and Samsung, which are benefiting from the desire of consumers to carry these all-powerful ‘mini’ computers in their pockets. With the connectivity these smartphones present, users are never left ‘out of

In basic terms, a market structure regarded monopolistic is deemed to have some elements or components of both competition and monopoly. In such a market structure, there exists a large number of entities offering for sale goods that in addition to being substitutes also happen to be differentiated significantly. In this text, I highlight the mobile phone market monopolistic competition. Further, I discuss how such a market would be impacted by both an increase in the price of an input regarded important and a decrease in the demand of mobile phones.

tablets and watches of today the company has always been on the verge of cutting edge technology.

In essence, technology has increased in growth rapidly, to the point where computers aren’t just dominating households but also within our pockets. For 2016, the number of smartphone users is forecast to reach 2.1 billion. [1]

revolutionized the idea of what a smartphone should be and the features that it should

Apple’s iPhone and iPad has gained a large share of the smart phone and computer tablet market.   Mitchell (2011) noted that competitors have released their own versions, and almost overnight, a new technological commodity has become a competing force in the business world. Apple has introduced many innovative features and has redefined the mobile-device and computer tablet landscape forcing the competition to evolve and play catch-up in many cases (DesRosiers, 2010).

Over the years, there has been an increased growth in the usage of smartphones across the world. Gee (2014) asserts that,

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.

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.

1. The Smartphone industry is a well established market and the threats of a new entrant is low, as technology needed to rival the devices already available is quite advance if they want to differentiate from them