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Generation Iphone Essay

740 words - 3 pages

In the cellular device industry there are a lot of firms but all of these firms are very differentiated which keep things competitive. Some phones are advertised on how the product contains the cutting edge technology with all the newest features imaginable, while other products advertise to the lower budget demographic acknowledging their product isn’t the best on the market but it is very affordable, something that a phone containing top of the line new features cannot do and that’s how they stay competitive. In the cell phone industry Apples biggest competition is currently the Galaxy series run by Samsung who ironically rivals apple in a number of other products. The mobile phone industry is huge at this point in time, and it is also still growing at an incredible pace; so fast that at this point there are more mobile phones in households today than toothbrushes in bathrooms (Mitchell Bingemann, 2012). Iphones are the leading product in this industry, it has come to the point where you could walk onto any college campus in America, go into any class room, and ask who has an Iphone and almost everyone in that classroom will raise their hand. If the question was to be asked who has a smartphone, then I can almost guarantee all the hands in the classroom will rise including the teacher’s; that pays dividends to how much the industry has expanded.
At this point in time entering the phone industry would be very difficult with just a differentiated product because there are so many phones now, even though the market is expanding, it would be expensive to start out and suffer low profit for an extended period of time until a firm could build up a rapport with consumers and odds are most of the new companies clients are going to have to be stolen from other companies, and the customer would have to completely switch brands. The market structure for apple in particular is very strong, they have a lot of power over what they do because not a lot of companies can do what they do. Subsequently Apple has strong pricing power and to be...

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