Mobile Apple and Samsung set to continue their duopoly in For the foreseeable future, it appears that Apple and Samsung will continue to carve up the majority of profit and a growing portion of sales of devices. Gartner Inan estimated 2. More than 75 percent of the devices will be mobile phones, with Android achieving more than double the share of Apple's iOS or Windows Phone in
Sunday, June 30, A view on the smartphone market - An Oligopoly The smartphone market is one of the most prominent oligopolies. It is one of the largest and most profitable markets in the world. The most identifying characteristic of an oligopoly is the number of sellers.
In the Apple iphone in oligopoly of the smartphone industry, the number of sellers are small, each of them holding a sizable percentage of the market share, with Apple and Samsung being the dominant players.
When firms are working within an oligopoly, the number of sellers are so small that they must anticipate their competitors' reactions before making a pricing decision. Being an oligopoly, the barriers to entry for the smartphone market is very high. It is extremely difficult for new firms to enter the market as barriers such as existing patents, control over essential raw materials and market, high customer switching costs and strong customer loyalty for existing brands block access to new firms who wish to enter the market.
For example, Apple and Samsung's existing loyal customers would not be inclined to switch brands to a new startup firm as they have strong customer loyalty and trust in the brands that they are usingnot to mention the extreme difficulty any new firms face with patent ownership, making production of new smartphones a very difficult task.
When firms work within an oligopoly, they have a joint control over the price of the products. Thus, there exists a mutual interdependence between firms to strategically price their products in order to mutually enjoy the highest profits. In the case of the smartphone industry, firms are forced to comply to the prices that are set in the market, or risk losing the demand for their product.
When one firm lowers the price of their smartphone, the demand will increase and thus profits will increase. However, this increase in profits cannot be enjoyed for long because other firms will decrease the prices of their smartphones as well, in order to even the playing field.
Mergers also exists within the smartphone market. When firms sense the danger of new firm entries, they merge and create joint policies in product pricing and and production in order to discourage the entry of new firms. This is an integral component for the survival of the current firms.
In order to continue profiting, the firms that exist within an oligopoly must work together to block the entry to new firms who wish to enter the market. Samsung has recently taken the lead in the smartphone market, overtaking Apple in terms of market share, thanks largely in part to their flagship device, the Samsung Galaxy S4 outselling Apple's iPhone 5.
And thus, as the smartphone market continues to grow and evolve, Samsung will be spearheading this movement forward, dominating the market with their Samsung galaxy S4, at least for the time being.
Keeve Wong Wekit References:iPhone XR review: Apple's cheaper battery king 4 out of 5 stars.
By the end of , the mainstream consumer mindset will have shifted enough to make the oligopoly of Apple’s App Store and Google Play seem like ancient history. Jonathan Lister is CTO at. The iPhone Goes Downstream: Mandatory Universal Apple’s iPhone). A competitive industry produces a generic product. Downstream, a quantity-setting oligopoly sells the generic and some or all of the ﬁrms also sell the new product. We use a two-stage model. In the ﬁrst stage, an upstream monopoly that has a new product. In response to profits of manufacturers of phones like Palm and Microsoft based smartphones, Research In Motion entered the market with the Blackberry, then Apple introduced the iPhone, and the latest innovation is Google’s Android.
With Face ID and a decent screen, this phone attempts a happy medium between quality and price – but £ still isn’t a bargain. Microsoft Windows and Apple Mac iOS is an oligopoly.
Apple V.S Microsoft Windows In these two large producers for computer operating systems, oligopoly is applied between Apple and Microsoft Windows firms. Could the iPhone maker have aspirations to become a music mogul?
both ends are looking to take back some of the pie from the oligopoly of the major labels.
Apple's new acquisition (with the. Mar 29, · > oligopoly |ˌäləˈɡäpəlē| noun (plural oligopolies) a state of limited competition, in which a market is shared by a small number of producers or sellers.
I don’t think Apple is an oligopoly. Jun 30, · The smartphone market is one of the most prominent oligopolies.
It is one of the largest and most profitable markets in the world. Among the major players in the smartphone industry are Apple, Samsung, Nokia, Blackberry, HTC, Sony Erricson, LG Author: Econs If iPhone is a 3G phone that works with any carrier and supports third-party apps, then industry power will begin to move away from the carrier oligopoly and toward Apple .