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Thu 12 Jan, 2017 11:48 am
Smartphone is a mobile phone which has features of personal computer like operating system, web browsing and the ability to run software applications. The first smartphone was IBM's Simon, which was presented as a concept device (rather than a consumer device) at the 1992 COMDEX computer industry trade show. In 1999, the Japanese firm NTT DoCoMo released the first smartphone to achieve mass adoption within a country. Smartphones became widespread in the late 2000s. There are well known companies of smartphones like Samsung, Apple, LG, Lenovo, ZTE, Huawei, OPPO, Vivo, Sony, RIM, HTC, Nokia and Xiaomi etc. Samsung is the leading smartphone seller in 2016. Its market share in third quarter of 2016 is 20% while apple is the second largest smartphone seller with 12.5% share. Huawei is third largest and its market share in third quarter of 2016 is 9.3%. Samsung market share was 32.5% in 2013 which has been reduced in 2016.Now apple and other smartphone seller companies are close to Samsung. Day by day, competition among companies is increasing.
What is the market structure of smartphone selling market. and how increased competition will impact the smartphone prices.
@pronoun ,
The market structure for the smartphone industry can be defined as an oligopoly market. Oligopoly involves only a few sellers of a standardized or differentiated product, so each firm is affected by the decisions of its rivals and must take those decisions into account in determining its own price and output .Firms in oligopoly may still be very competitive on price, especially if they are seeking to increase market share. In some circumstances we can see oligopolies where firms are seeking to cut prices and increase competitiveness.nother possibility for firms in oligopoly is for them to collude on price and set profit maximising levels of output. This maximises profit for the industry.
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