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Smart Phone Industry's Place In Society

1578 words - 6 pages

The first smart phone was the IBM Simon, introduced in 1992 by IBM and BellSouth but only until 2007, when Apple released its first iPhone, smart phones made a real revolution in the technology industry. Therefore, Apple can be considered as the first mover in the mart phone industry; however, competitors are entering and creating a fierce competition in the market. The structure of the smart phone market has changed from monopoly to oligopoly, meaning that the market condition has moved from only one firm dominates to more firms are competing in the industry. Although the market structure plays a very important role in the success of a firm, Apple has proved that it is the best firm in the smart phone industry and generating a lot of profits in whichever market structure it is operating in.

The iPhone is the first smart phone to use multi-touch interface while keypad was till the typical input method of other smart phones. Of course, Apple was not the first one to invent the advanced technology for smart phones but it played a major role to make smart phones become a great success in the market. Even now, many smart phones cannot catch up with the iPhone on multi-touch technology. Moreover, the first iPhone also introduced Safari web browser, which Ars Technica called “a dream” and “far superior” , whereas, other smart phones were still using out dated GPRS and WAP technology. Therefore, at that time, there was no similar smart phone that could really a substitution of iPhone. As the first mover with the advanced smart technology, Apple monopolised the market during the beginning of the smart phone industry. The major advantage of being the monopoliser was that Apple was the price maker which means it had a complete control over prices and it could decide how much the iPhone would be sold. The first iPhone was priced at $499 which was very costly. Of course, as the monopoliser, Apple could set the price as high as it wanted in order to maximize the profits, but there was no guarantee that people would be willing to pay a high price for a newly established phone. Then why at such a high price, the iPhone was still a success? The key success of Apple lied on the innovation and the quality of its products: high price means innovation and quality, and vice versa, as customers believed that they would receive excellent products at such prices. Therefore, Apple can take the advantages of being the first mover in a monopoly market.

Recently, well known giant phone producers have launched a number of smart phones which are comparable to the iPhone. These new comers include some major phone producers: Nokia, Blackberry, Samsung, LG, HTC, Google, Microsoft, and Windows. Their smart phones also have a large touch screen, WiFi, 3G, fast internet browsers, constantly updated application, and modern operating systems such as Android, Linux and Windows. Although some of them such as Blackberry and Nokia differentiate their products from the iPhone by...

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