Growth of Cell Phone Sales, Essay Example

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Words: 1185

Essay

Introduction

The industry of communication-innovation affects the condition of the worldwide market and how it specifically responds to particular pressures from the internal and external elements affecting its function. According to the recent Mobile World Congress, there are two particular buzzes that currently affect the said industry especially when it comes to defining how the industry is incurring overall growth. The article presented on the issue of the Wall Street Journal released in March 6, 2013 specifically focuses on the condition by which the different changes in market demands affects the macroeconomic growth of the industry. It also includes a discussion on how it influences the economic status of the nations where it is most accepted and practically used by the market.

According to the article written by Rooney, the mobile industry has garnered its most specific peak performance as it introduces a series of competing branded smart phones that boast about their features that specifically set them apart from each other. Another issue targeted by the article is that of the rampant copying of particular cell phone brands that are sold to the market [both inside and outside the United States and Europe] at a much lower price. Such issue is considered to have a great impact on the overall status of the industry in relation to the growing piracy behind its existence. According to the Mobile World Congress’ report, this fact ruins the idea that innovation is what mobile industries are specifically dependent upon.

Economic Implications

True, the world of mobile industry offers several options of products that provide different specific features that the market demands for. Considerably, it is the manner by which a particular cell phone manufacturers responds to a demand from the market that makes it at the higher edge of sales as the people respond to what they offer. Nevertheless, because of the existence of piracy, whereas the best features are being put together in [nameless] cell phones and are sold at a lower price with the promise of an [almost] the same level of satisfaction from function, such condition of growth in the mobile industry becomes close to impossible.

The said industry however do not lose the hope that their stand in innovation and development remains relatively effective in distinctively defining what the future is supposed to look like for the businesses and the patrons that appreciate its products. Huge playing businesses in the industry, which includes Black Berry, Samsung and Nokia, promise to provide the market more of what they can give to ensure their satisfaction. What remains true though is that not everyone can afford what these big three could offer. Nevertheless, almost everyone wants what they are presenting the market with.

Seemingly, piracy of mobile models by particular companies originating from China, India and even in Russia is specifically getting attention from the other members of the market who are likely able to purchase smart phones at a much lower price. The question of whether or not containing piracy could actually affect the actual sales of the ‘Big Three’ in the mobile industry remains unanswered. Because if for some reason, it is only the lower edge of the market economy that appreciates what the pirating companies offer, would it really matter if they [actually] stop selling their products to the market? The desire to know how such an adjustment in the situation could actually affect actual sales report is remaining as a mere dream especially for those companies aiming to lead in relation to innovation, design and style just so to serve the demands of the market.

Along with the emergence of pirated model phones, comes the emergence of the manufacturers of both original and copied designs of mobile accessories. Whether or not the production and sales of these particular items in the market is significant to the overall standing of the mobile industry, it could be realized that it is a part of the resulting factor that the rave for smartphones has given birth to. Relatively, the more authentic the materials used in creating the accessories, the more expensive they are. The decision of whether or not to buy cheap copies of the said accessories specifically depends on the buyer’s decision.

To create a comparison between companies that are involved in establishing the backbone of the mobile industry, the diagram below shall provide a clearer view on the actual situations happening around the globe:

Mobile Market Share

Take note how companies such as Huawei and ZTE enter the overall market share at 5% and 4% respectively. Although these organizations are considered to create smartphone clones [although not considered fake], they are still able to gain a relative position in the industry in relation to how the market accepts their products. The 35% of market share that is divided between other legitimate and emerging companies in the industry remains to be strongly influenced by how the market sees the importance of originality or the authenticity of the smartphone they are using.

It could be assumed then that the same thing is true when it comes to deciphering how the market responds to the mobile accessory wing of the mobile industry. There are those who have exacting value in relation to the quality and brand of the added accessories to their mobile phones and there are those who simply want to have something, a piece of what is considered trendy in the market at a current pace.

Conclusion

The aspect of growth in the mobile industry remains at a pace of developmental progress. Even at the face of innovative destruction due to piracy, the article of Rooney confirms that retaining integrity and quality to protected branded items in the industry allows for it to confirm growth. Relatively, in the field of internationally insisting on containing the growing demand of the market for ‘more’ on what the smartphones offer them with, companies such as Samsung and Nokia continue to engage in spearing research that would identify with the most effective functions that could entice the interest of the market to buy from the industry. This trend, this culture, although copied by outside creators of mobile phones, will remain the basis of what the mobile industry is all about. Innovation still remains at the base of the structure of its stance, however retaining quality and integrity among all of its manufactured products stand as the bearing that holds this international industry together. With this in mind, it could be expected that the said industry would remain at the top of the best performing industries around the globe.

Works Cited

Rooney, Ben. (2013). Mobile Industry Sees A Shift in Innovation. http://online.wsj.com/article/SB10001424127887323628804578344380625574980.html. (Retrieved on July 25, 2013).

Grobart, S. (2013). (IMAGE SOURCE) How Samsung Became the World’s No. 1 Smartphone Maker. http://www.businessweek.com/articles/2013-03-28/how-samsung-became-the-worlds-no-dot-1-smartphone-maker. (Retrieved on July 25, 2013).

Murphy, James; P. Geoffrey Allen, Thomas H. Stevens and Darryl Weatherhead (August 2004). “A Meta-analysis of Hypothetical Bias in Stated Preference Valuation”. Environmental and Rescue Resource Journal. 30 (3): 313–325.

Viscusi, Kip; Joseph E. Aldy (2003). “The Value of a Statistical Life: A Critical Review of Market Estimates Throughout the World”. Journal of Risk and Uncertainty.  27 (1): 5–76.

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