Smart Phone Industry's Place in Society

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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 o... ... middle of paper ... 4S first weekend sales top four million. Retrieved December 5, 2011, from Apple. Barnett, E. (2011, October 7). Google’s Eric Schmidt: Apple’s Siri could pose ‘threat’. Retrieved December 5, 2011, from The Telegraph. Cheng, J. (2007, July 9). iPhone in depth: the Ars review. Retrieved December 4, 2011, from ArsTechnica. Schneidawind, J. (1992, November 23). Big Blue Unveiling. USA Today , p. 2B. Sloman, J. (2006). Profit Maximising under Imperfect Competition. In Economics (6th ed., pp. 181-196). Sloman, J. (2006). Profit Maximising under Perfect Competition and Monopoly. In Economics (6th Edition ed., pp. 166-172). Warren, C. (2011, March 2). Apple: 100 millions iPhone sold. Retrieved December 5, 2011, from Mashable. Willis, A. (2011, October 10). Steve Jobs: the five Apple products 'that changed the world. Retrieved December 5, 2011, from The Telegraph.

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