Mergers also exists within the smartphone market. However, every firm that practice oligopoly will have a temptation to cooperate because in oligopoly there is small number of firms.
I would like to suggest these two firms are compete with each other. It is one of the largest and most profitable markets in the world. By the way, which of them will earn more profits?
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.
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 Apple iphone in oligopoly.
When one firm lowers the price of their smartphone, the demand will increase and thus profits will increase.
If Apple and Microsoft decide to compete with each other, they will keep continue producing a better computer system. Example, the latest Microsoft windows operating systems is windows 8 and the upcoming operating systems for Apple is iOS 7 which is competing with windows 8.
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. Keeve Wong Wekit References: S Microsoft Windows In these two large producers for computer operating systems, oligopoly is applied between Apple and Microsoft Windows firms.
In the case of the smartphone industry, the Apple iphone in oligopoly of sellers are small, each of them holding a sizable percentage of the market share, with Apple and Samsung being the dominant players.
According to the information that I have read, computer operating systems in are dominated by a few big firms that are provide unique products for supporting technology which is those two. 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.
In my opinion, both firms also will earn profits due to mutual interdependence of their operating systems and brand loyalty. What is your opinion? But it is illegal and dangerous because cartel often breakdown and maybe that is a reason until now they are still competes with each other.
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. Sunday, June 30, A view on the smartphone market - An Oligopoly The smartphone market is one of the most prominent oligopolies.
They will cooperate together to limit output, price and increase profits. The barrier to entry the market is high which is difficult since these two computer operating system is dominating the market and this high entry barrier is present due to copyrights, patents, advertisements and also economies of scale EOS.
In oligopoly, they face dilemma between cooperate or compete with each other. 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.
The most identifying characteristic of an oligopoly is the number of sellers. 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.
Being an oligopoly, the barriers to entry for the smartphone market is very high.Transcript of Apple & iPhone. Apple Market Structure for Smartphones Oligopoly - A few large firms dominate the market - Legal barriers prevent the entry of new firms - Main obstacle: large amount of capital investment needed Apple's Position Specific customers.
Oct 22, · The market structure of Apple Inc. In my points of view, Apple Inc. can be considered stand in difference market structures such as oligopoly and monopolistic competition. Oligopoly is a market form which is controlled by a small amount of competitors known as oligopolists (billsimas.com, ).Author: The Apple Inc.
It's not a bad guess. Oligopolies can be maintained for quite some time with the right signaling games. On the other hand, I'm not sure how credible a signal they can send. Apple may eventually make most of its money from content, but right now it's a vendor of shiny hardware, which it sells at a hefty premium.
Android Revenue Apple: Demand Apple outsmarts taxes Headquarters in Nevada Saves billions of dollars Apple Taxes Apple Pricing iPad 3 iPhone 5 MacBook Pro iPod touch Apple Market Share 10% overall 25% smartphones By: Sam Weir & Demetrius Holmes Oligopoly: Apple vs. Android Increasing milion to million 20% of google.
Apple Iphone In Oligopoly. With the very high demand in the market place for a musical device called the IPod, it’s no surprise that the IPhone, a hybrid of a phone and music device that it will be a big hit in the market place. 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: EconsDownload