Introduction
The US and global consumers shows different consumer behavior for products. The economy possesses the largest technology companies such as Google Inc. and Apple Inc. in the world.
High consumption of technology products in the US and all over the world.
The mobile phone industry is very innovative and important to the society. Product that I will be looking at is the iPhone and its rising demand in the US market despite the increased competition from Samsung Inc.
iPhone has acquired the largest market share in the United States in spite of its price.
The paper discusses about the key players in the industry and their impact on product pricing, demand and supply.
iPhone’s influence in the industry and the forces that drive the demand and supply of the product.
Analysis
Mobile phone industry and the market structure
The industry is highly competitive
Companies such as BlackBerry have recently been performing poorly in the markets and there is little to be done with the rate at which the industry is seen growth and development.
The smart phone industry has an oligopoly market structure since there are a few large sellers who hold a sizable market share and many buyers
. Dormant players are Apple and Samsung
The oligopoly structure has a small number of sellers in such a way that the competitors look at the players with large percentage of the share capital behavior before making their pricing decisions.
The recent trends have seen increased competition between Apple and Samsung.
The iPhone product market: Growth and Challenges
iPhones market is increasingly attractive due to the nature of the product.
Product provides the customers with all their needs in terms of speed, technology and accessibility
The iPhone growth rate can still be anticipated and consumers can expect more growth since the market share captured is huge.
iPhones have an advantage of product differentiation which is important for market share grab.
Customers provide the revenues for the company since they keep purchasing the products year after year.
The domestic and global market of iPhones is huge and the revenues acquired have been stable over the years despite the competition
Supply and demand of iPhones
The demand for iPhone SE has surpassed the supply of the product. The product is in constant demand since it was released by the company.
Competition
The iPhone company, Apple Inc. faces a huge competition from Samsung group.
The high competition has seen an increased law suits against each company that always result to huge settlements.
The products sold by Samsung are fairly priced compared to iPhones
Conclusion
The mobile phone industry is competitive and innovations determine whether a player will become dominant or not.
Apple has provided customers with a product that they need due to its innovations and development. Apple has created a competitive advantage over the competitors through locating the plant in China
Works Cited;
Juan, Pablo. "Apple’s Shrinking Impact in the Smartphone Industry". Harvard Business Review. N.p., 2016. Web. 27 Apr. 2016.
Sherman, Erick. "Apple Beats Estimates, But Watch These Sales Trends". Cbsnews.com. N.p., 2016. Web. 27 Apr. 2016.
Kenney, Martin, and Bryan Pon. "Structuring the smartphone industry: is the mobile internet OS platform the key?." Journal of Industry, Competition and Trade 11.3 (2011): 239-261.
Utterback, James M., and Fernando F. Suarez. "Innovation, competition, and industry structure." Research policy 22.1 (1993): 1-21.
Whitney, Lance. "Iphone SE Demand Outstripping Supply, Says Apple". CNET. N.p., 2016. Web. 27 Apr. 2016.
