Sunday, March 16, 2014
Does Apple Stand a Chance?
I came across this article from 6 years ago that didn't give Apple much
of a chance with their new iPhone. Read the article and answer the 4
questions at the end of it. Then tell me why you think that Apple was such a success with the iPhone.
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57 comments:
1. Barriers that can prevent sales can be things such as the fact that Apple, at the time, was a newcomer to the phone industry which was already being dominated by 4 other major companies. For most companies, the problem can be that their product brings nothing new or innovative enough to the consumer.
2. Given the fact that the phone industry today is already heavily dominated by a few companies, entering it now would proved to be risky as the larger companies will easily weed them back out. Not to mention that the phone industry is a rather linear one as most, if not all, phones are designed to perform the same general tasks.
3. Apple had already made a name for itself before entering the phone business. They were already a growing superpower and had the money and innovative abilities to back their products. Their only major barrier with the demand market was simply getting their name out to the public which proved to be a small hurdle.
4. To reiterate, all phones generally must perform the same tasks, therefore the only question is about the quality of the product. It is all a matter of which is better or looks fancier and that is going to be the one with more sales.
As for the success of the iPhone itself, most of the credit comes from the marketing and advertising that Apple provided for it, getting the idea of their product in everyone's minds. However, Apple is also an innovative company that was able to bring new ideas to the market that served to strengthen the appeal of its product, thus explaining the takeover in the phone industry.
1. The barriers for new mobile phone are trying to get people to change. I have been using iPhone for 8 years now, and it will be quite the challenge to get me to stop using the product that I already know and love.
2. So few firms produce mobile phones because there are only so many models of cellular devices needed to suit the whole world’s needs. We don’t need 7 billion phone models, one special model for each person on the planet.
3. I think apple was already able to penetrate the mobile market. Just look around. Everyone today has an iPhone or a blackberry. (and if they have a blackberry, it is most likely their work phone and they also own an iPhone as their personal phone.)- also, note that some flip phones still exist, but they are most likely all owned by people over the age of 80.
4. They pose no real threat. Nobody wants a knockoff cell phone. If you want a phone, you want all the services that come with it, including Apple Care and Apple Support.
I think that Apple was successful because they already had a strong network of people who loved their product. Once the phone was out in public enough, the device was able to speak for itself.
Katie Snyder, period 3
1. The main barrier with entering the phone market is the amount of money you have to put into the business to become a main company other than the 4 firms that control 75 percent of the company. Other barriers exist through avoiding copyrights, keeping up with latest trends etc.
2. Few firms produce cell phones because of the barriers. The barriers prevent many from being able to produce phones and create products for the public.
3.Ignoring the fact that Apple already has penetrated the market, yes i think Apple will because their device is different than before. Its creative and innovative.
4. The cheaper knock offs make it harder for apple to get more customers. Especially when companies are making cheaper Iphone look alikes that allow consumers to get products that are almost as good as the real deal, but much cheaper.
Apple had such success with its Iphone because it was so different than other types of phones. when the Iphone came out, people were still flipping open their phone and using a physical key pad. However, the Iphone took a completely different, and new approach that allowed them to excel in the market and basically take over it. Now the Iphone is one of the most dominant phones on the market with millions and millions of users. The Iphone also succeeded due to its compatibility with everything else. consumers could like their iphones to everything and make their whole life based around apple products.
Tyler Morris
1st period
1. Mobile phone markets now are restricted by fees as well as by different companies who have already gained control. They used to be in charge of making phones, apple made that process obsolete.
2. It was almost an oligarchy, these companies make and sell phones and phone plans used to be the idea. Again, apple changed that.
3. As is shown clearly now, they have done just that. Apple products have almost become a social cult. A must have accessory that does a whole lot more than anyone seems to have bargained for.
4. Back then, they could steal business away. Now however, Apple, and other companies, have shown that their ability to do certain tasks, and hold certain amounts of information, prove to be a superior product than the knock-offs.
Apple will now survive solely on its legacy and its new products. They successfully penetrated the mobile phone market. However, now they have competition. many companies have come out with smartphones that have more qualifications than Apple. (staying true to the Mac v. PC grudge match.)
Cortney Corley
Period 4
1. The barriers that exist when entering the market for mobile phones consist of the big businesses that already have a large amount of control on this particular market. The new manufacturer/ company must come up with something truly new, innovative, and exciting in order to withstand a chance. Advertising and getting the word out is also important because urging consumers to buy this new good affects the market as well.
2. So few firms produce mobile phones because they might not have the right equipment and technology to make a difference in the mobile phone market. Or, competition could be so strong that there are easily overlooked because people have a tendency to turn towards the bigger, more popular brand names.
3. Yes, Apple has been successful in penetrating the mobile phone market. This article was written in the past, and knowing about the present, and Apple’s sudden impact, it is fair to say they are extremely successful because they came up with a new and innovative idea.
4. It may be cheaper for people in China and other foreign nations to buy cheaper knock offs because they are domestically made, and therefore easier to get ahold of and cheaper to buy. Apple would significantly suffer if there is a cheaper version of it’s product because people and consumers will lose the desire to buy the official iphone if there is something similar yet less costly.
1. In the mobile phone market, barriers include the level of competition. With strong, established companies already at the forefront, it would be difficult for others to breakout and convince consumers to trust their product.
2. Difficulties in competition where there is dominant,major corporations make it hard for smaller companies to grab attention. In addition, innovation for new phones becomes harder each year as phones continue to improve. Such innovation may prove to be too costly to pursue.
3. As an established technological company, Apple already had a great chance to dominate the phone market.
4. The only threat from these knock-offs would be loss of profits,but that will only be a small amount. People are willing to pay for the real brand for the true experience and for better security.
The iPhone became a huge success due to the level of marketing. Furthermore, Apple's reputation with their previous products made people have confidence in the iPhone, which was another new, exciting product.
1. One major barrier that limits the mobile market is the presence of preexisting well known companies. Since these companies have much funds, they are able to buyout advertisement space from smaller competitors.
2.Few firms produce cell phones because the market is already a monopoly consisting of a few companies. It is difficult to create an innovative idea without the funds that the large companies have, so small firms often are left unheard off and abandoned.
3. Since Apple was already a strong company in the technology world with its major productions of the Ipod and Macbook, Apple had a strong chance of succeeding with the production of the Iphone.
4. Although "knock offs" can be bought for a cheaper price, they lack the security and insurance granted when a real Iphone is bought. or example, a "knock off" phone could easily be hacked into due to a lack of a reliable security system installed on the phone.
Jennifer Shen- 1st period
1. One of the barriers to entry exist in the market for mobile phones was that before iphone came out, there were already four companies such as Nokia, Motorola, Samsung, and Sony Ericsson which dominated the phone market. The Phone market was a form of an oligopoly. Its difficult to establish a dominant position among these big companies. Other barriers such as the invasion of cheaper knockoff do also exist.
2. So few firms produce mobile phones because of the barriers. It’s not easy to make innovations to beat these phone giants whose productions gained much more public praises. People like to buy phones from prevailing companies.
3. Yes, I do. Because iphone is innovative not only on the appearance, but also on its idea.
4. The cheaper “knock-offs” of the Apple iphones would decrease the demand of the real iphones. Some people may be satisfied to buy a cheaper and likely knock-offs instead of an expensive iphone.
Iphone is so successful because it is the first smartphone. We all see its innovative. It led a revolution of phone industry. Now, phones are not just phones. They can substitute many other things that we need to use in daily life.
1) Existing Competition and Standing: Phone companies such as Motorola already have a large foothold on the mobile market. Its rather difficult to push an existing company that has been pretty successful for years out of the way in the market. In addition, the competition that already exists usually leaves little room for newcomers to an industry. It's like sending a new student into school a full semester behind. However, there is always the potential that the student (Apple in this case) catch up and even surpasses the other students.
2) I would have to say lack of potential profitability due to the already existing companies and their wide variety of mobile devices. If a new company enters the fray, they will most likely have close to the same technology as existing companies. In addition, they will most likely have to set their prices at a lower level than the competition just to sell any of their products. Apple is an exception in this case because their technology, for the most part, surpasses that of any other mobile company. For this reason they can set higher prices and still sell their product. It's more bang for your buck.
3) Of course Apple can penetrate the market. With Apple's technology and reliability, penetrating the market will be a cinch. However, due to the high prices, consumers in the lower class will be limited. This can be resolved by focusing on the middle and upper class just as Apple is doing.
4) Considering as how China's "knock-off" market affects most companies, I would say the threat is the same as always: There is no threat, or at least a big enough one to worry about. If you wanna go buy a "knock-off," be by guest. However, most people don't want "knock-off's" that don't have all of the gadgets that the real deal has. Even though the fake's exist, most people will purchase the real products instead. Just ask yourself this: Would you rather buy a cheap "knock-off" that doesn't have all the accessories that the real product has and is most likely to break and quicker, or would you rather purchase the real Iphone(or whatever it is) with the complete package, inducing longer lasting life and warranties with professional support?
Apple was a success because they appealed to a specific audience ad gave the people what they wanted. Their advanced technology in their gadgets was to their advantage. Who wouldn't want to buy an Iphone(besides me) with all of the neat tools built in? A successful business focuses on a specific group of consumers and builds their product(s) around their desires. By following this philosophy and extorting their advanced technology, Apple deserved to succeed.
1. The main barrier to entry for the mobile phone market is to actually get customers and make a big profit. In order to get the customers they have to prove through advertisement why they're better, or how their phone is different from the rest and stay on top of the technology.
2. I think that there were few firms for cell phones because no one was sure they could break the barriers of entry and make as much as the big companies. Besides the fear of barriers the companies all had the same types of phones and no one was sure what to put out that was different and likeable by the people.
3. I think Apple will penetrate the mobile market for sure because of the number of customers they have. They not only have customers that already had Apple products but now they're getting customers from young adults to middle aged people because the iPhone appeals to them.
4. The knock-off iPhone has no threats to the real iPhone besides price, but I'm sure people would rather pay more for a phone they know would work and looks better and is also made better than to just buy a phone that's cheaply made and cheap looking because of the lower price.
Apple has been such a success because they have 3one product that can be used for so many things and can be used by more than one age group. A lot of older people get the phone because maybe they want something for business that's a nice size and sleek. The younger people like them because they're the "cool" phones to have. Its all about your customers and who the phone appeals to.
Period 4
1. What barriers to entry exist in the market for mobile phones?
One barrier is the ability to utilize the economies of scale to their fullest extent. This applied to Apple when it first entered the phone market, but not to the extent it might affect other companies. The reason for Apple having an advantage for overcoming this barrier to entry is because Apple, at the time of entering the phone market, already had factories capable of mass producing small machines such as iPods, another popular Apple device.
2. Why do you think so few firms produce mobile phones?
Entering a new market is very difficult and comes with a great risk, especially when what you are doing is a direct threat to other companies, as when a new company joins the market, they take business that might have been another company’s.
3. Do you think Apple will be able to successfully penetrate the mobile market?
Apple is already a success in the mobile market. Since the first generation iPhone came out, Apple has been the company that everyone wanted. To this day, Apple still continues to create a name for it by creating new innovations.
4. What threat do cheaper “knock-offs” of the Apple iPhone pose to Apples attempts to compete in China’s mobile market?
The threat from these cheaper phones in China towards Apple is very large. Not only do they serve the same function, but they are made for a fraction of the price, making demand among people who cannot normally afford an iPhone very high.
One reason why Apple is very successful is because the products are very user friendly. They also keep everything simple and easy. Apple also creates good customer service and great in-store experience. And since its development and launch, many phones have raised their standards to match the goal set by the iPhone. The versions recently developed or being developed holds a promise to satisfy user’s needs according to their style.
Period 1
1. One pretty obvious barrier is the fact that there are already so many phones out there. The competition is extremely high. Especially since Apple, at the time, was a new company, this made it the "inexperienced" company that needed to be proved reliable and effective. This being said, the new product must be different and practical in an original way, as so many phones already perform similar functions. Another barrier is that there are only so many functions a phone can have, and once there is a phone that has been produced with these functions that is essentially the best phone on the market, no one else will want anything else.
2. I think very few firms produce mobile phones because, again, there is so much competition. A mobile phone back then was just used to make calls. Now, we use phones for calling, texting, playing games, listening to music, etc. However, even though these functions have expanded, it has become relatively difficult to come up with newer, different functions that do not already exist. In addition, again, everyone wants the newest, best phone. If one company can come up with that product, then no one else really wants the other phones from competitors.
3. Well, this question is a little outdated. Apple did have the potential to penetrate the mobile market because of its creative, innovative ideas. No one else had ever thought of anything similar to what they had in mind. Thus, it has been able to beat out competitors.
4. People in China will want the knock-off. Who wouldn't want a phone that functions and looks extremely similar to another phone for cheaper? On the other hand, these knock-offs do damage Apple's reputation and business in China. Some people may not believe Apple to be reliable if the knock-offs have some kind of defect or malfunction, and this could make the real Apple look bad. Not saying Apple doesn't have its issues, but it would not help business if reliability is lost.
Apple's iPhone was a success because it was something new, something different. No one knew what an "app" was, and not many could have ever imagined putting so many daily, practical functions into a small, compact electronic device. It was so original that everyone had to try it. Because it proved to be useful and was something fresh on the market, word went around and everyone wanted one. It made life somewhat easier, and everyone wants that.
1. Corporations that already dominate the phone industry will pose threats for new mobile phone companies. Plus, the challenge of bettering the new apps and gadgets already on the "hottest" mobile phone.
2. Few firms produce mobile phones, because it is a limited industry. There are already so many different types of phones out that are capable of many different things. People want the best kind of phone, which is very hard to beat.
3. Apple will be and has been very successful in the mobile market. Almost everyone I see carry's a type of iPhone or itouch.
4. This "cheaper knock off" looks exactly like the real iPhone, and even if there are problems, there are ways of solving them. So if a phone that costs less can perform the same duties as the real one, why not buy the cheaper one. Especially in China, where money is an issue, Apple's iPhone will suffer sales.
Apple's iPhone was such a success because it is capable of doing what many different phones and devices do, all on its own. The various tools and fun gadgets it has makes it entertaining and handy to have around. Plus, the good quality pictures and fast internet make this phone idea. Not to mention, its sleek look.
Kristal Pinto
4th period
1)One of the biggest barriers mobile companies face for a break through is the amount of competition in the market. Before the i-phone released there were 4 mobile companies dominating the charts, Nokia, Samsung, Motorola and Sony Ericson. With so many companies out in the market, there is a huge issue over patents. How is a company supposed to break through with each company having its own patent? There is hardly any room for creativity.
2) Such a few amount of companies produce mobile phones is because of the high cost, with so many high end names dominating the market, what are the chances for a big break through. Now a days phones aren't flip phones, but smart phones that are touch screen with all the expenses that go in to make a phones stand out makes the cost too high.
3)Apple most definitely broken through the market and is being used by most people. Apple was able to build this ecosystem that just by putting in a username and password it will be able to connect to all these different apps.
4)China has a populations of approximate 1.5 billion. To capture the the Chinese mobile market, it would add up to additional 1 billion dollars in revenue, however the presence of a knockoff phone would take away that revenue.
I think the i-phone became a huge success because apple not only created a phone but they created a brand. Their brand has such a value to it because the i-phone is made in a way where it is personal to each and every user. For example, when the Motorola Razor was big, people would keep buying the razor. However, once the razor phone fell out of fashion so did the brand Motorola.
1. One barrier is the vast majority of differtn phone manufacturing companies are in production. The iPhone isn't the only phone out in the market. Competition is the key barier in my opinion from making Apple's iPhone a distincitve monopolizing factor in the phone industry. The different models of phone are so advanced in technology now a days that people can literally custom make their phone to there personal need. Whether they want touch screen, flip, or both, the consumer has the ultimate say in what phone they may want and it may just not be the iPhone.
2. The pie chart in the article shows the percentage of the different phone companies in the market. I'm pretty sure they are millions of new and upcoming phone companies worldwide, however companies like LG, Motorola, and Samsung are already so large in quanity and demand they buy out any competition they may see. Phone companies are just better off having a few which dominate the industry.
3. If I were to do a random sample of americans who have an iPhone, I would assume roughly 50% of the poll would say they have an iPhone. Not sure if its jsut bandwagon, corporate advertising, or jsut the aesthetics of the iPhone, but if I were Steve Jobs, I would feel accomplished. Iphones are everywhere. In present day, I basicalyl see only one rival phone with the iPhone and that is the Samsung Galaxy. These 2 phones are dominating the markey just in my community. I can just imagine what it's like nationwide.
4. Iphones are not the cheapest phone out in the market, in fact I'd rank it at the top in my list of most expensive phones. Its all up to the consumer, if they're willing to sarifcie the risk of quality for cost than so be it.
1. The barrier for entry of a new product in the mobile phone market is the same as it was many years ago, existing trends in cellphones. In 2007, just two companies, Nokia and Motorola, dominated the majority of the mobile market. Likewise, in present-day, companies like Samsung and Apple would probably be just as dominating due to popularity of the Galaxy series and the iPhone series.
2. This question parallels the barrier for entry into the market. The strong brand names of current mobile market giants give less appeal to trying new products since there are great ones being produced by well-known companies quite often.
3. Being six years after the article, it's clear that Apple did indeed penetrate the mobile market, going into its fifth generation of the iPhone. At the time, it was more questionable. Although Apple was doing well in another technology-based business, the phone market was controlled so heavily by other companies that it wasn't clear. However, it seemed like they would because of the innovative ideas behind the original iPhone.
4. Knockoffs provided a cheaper alternative to the expensive product ($700 for an iPhone). That alternative drives buyers that would rather buy a cheap product that's more likely to defect away from the real product.
1.) A barrier for Apple when entering the market were: the lake of brand recognition for an Apple phone. No one knew about an "iPhone" so it wasn't the go to phone as it is now.
2.) So few firms produce mobile phones because the process of making them is costly, the start up is even more costly, and because you have to get phone carriers to work with your phone.
3.) Apple will be (was) able to penetrate the market.
4.) The are of no opposition, they are low quality and people will realize that, plus they can produce phones at the capacity that Apple can.
Saimol Edaparampil
4th Period
1. Barriers that exist when a company first enters into a market for mobile phones is competition with the leading mobile phone companies as well as the fact that the company is new and not much is known about the quality of the product.
2. I think a few firms produce mobile phones because there is no need to have various amounts of companies producing different phones when it can be split among a few companies. Those few companies will end up dominating as they become popular and it will become hard for new companies to make an impression if they can't invent something mind-blowing.
3.As someone who owns an Apple iPhone, I believe Apple will last in the phone market for a long time because they gradually invent better phones with new technology.
4. Most people would rather get the cheaper version of anything if they are trying to save money, so realistically people would probably get the fake one if it basically functions the same as the real one. This would definitely be a problem that Apple would face and many other companies, in fact, if it happened to them.
1. The greatest barrier into the mobile phone market is the high degree of competition. The cell phone industry has been dominated by a select few companies, and while these occasionally change (such as Apple's takeover of the market)it is hard to establish a new brand into the industry without significant funds and hype.
2.The reason there aren't more phone producers is because there isn't a need for them. The current giants in the cell phone market produce just about any phone you could want, from the 99 cents flip-phones to the gigantic tablet-sized phones, like the Note.
3. Apple is able to enter the market because they provided a unique item. The iPhone was more than just another cell phone, it was a revolution in thinking when it came to how phones are used and what programs could be run on them.
4.Seeing as it would be impossible for Apple to curb the amount of knock-off phones made in China, the access to the Chinese market is still worth it. Based on population alone, adding in the cult of personality Apple has in China, a small decrease in demand is worth it to have access to such a large selling base.
Apple succeed because they had the brand recognition and were first to the idea of a real smartphone. They used their side programs such as iTunes and the recognition of their computers to gain attention with a product that wasn't necessarily Apple's completely original idea, but an idea that they were able to realize with great success.
1. Becoming a new phone market is going to be tough unless there is a new advance in technology that is forefronted by the company that wishes to proudce phones.There is already a large market for smartphones and such and compteting in an already developed market is hard to say the least. There are staple products in the everyday household and not as easily removable as one may think.
2.People do not want to be bombarded with choices of phones that they can buy because people are already indecisive with only two phones. The expense to make a high valued phone is also a large amount, so very few companies can.
3.Apple has already been penetrating the phone market for a while. The Iphone is one of the world's most well known and recognizable brands, going from teenage girls to middle aged businessmen. Apple cannot be defeated.
4. People in the chinese market, due to their overwhelming amount of poor citizens, are more likely to chose a less known brand or an apple knockoff than to get the real deal. Something that is made closer to home and that doesn't take a bucket ton of money just to import back to China where it is made, is going to be the wave of the future there. Where as here in the US, the Iphone will continue to prosper like an addiction to the name.
John Moore
Period 3
1. The barriers that companies wanting to get into the cell phone market is the loyalty that potential customers face, avoiding patents and copyrights, and lastly the money necessary to become a major competitor worldwide.
2. There are no where near as many firms that produce cell phones than other products just because there are only so many ways to make a phone that is attractive and useful as the population needs without stepping on potential competitors toes.
3. Apple most definitely worked it's way into the cell phone market. Before their original debut into the cell phone industry they were already revered in other technology fields and so making a innovative phone that no other company produced made their entrance easy and possible.
4. Knock off cell phones do not endanger Apple sales just because of the fact that the people who buy the knock off cell phones are not apple's target audience. These people buy them for their looks and price, only one of which Apple can provide
Seth Jokinen
4th Period
1.) One barrier that exist for entry into the phone industry is that the people who have gotten to know and use a product will likely stick with it, however a newcomer to the phone industry is not tested is usually held with a bit more suspicion that can dissuade buyers.
2.)So few firms produce mobile phones because it is difficult to try and make your product stick out and in a way people will praise it for. So many phones nowadays look so alike that if it weren't for a company logo, it would begin to get hard to tell them apart.
3.)Well it already has penetrated the market as evident by their massive phone industry nowadays, but if I already didn't know better the innovation for the smart phone set it apart from millions of other phones.
4.) The Cheap knock-off phones are made much cheaper for a slightly lower grade of quality. These phones look and preform like the original so people can be confused and buy the wrong product. Also, people may see their cheap prices and simply buy them
Why was apple so successful?
Because of innovation, they introduced a phone that is more than a phone. They introduced a hybrid between many useful tools that could perform most tasks competently. Lastly, the phone was different. It was exciting and new and was very aesthetic to the eye.
Nicolas Alba
Period 3
1) Barriers for most new products is hat most of the time there are already existing companies that already have "control" over the market. Since they already have money, they can do anything to slow down sales of the new product.
2) So few firms produce mobile phones because of the same reason. Other companies already control the market so they can spend money to manipulate it, making sure that competing companies don't pose a threat.
3) Apple exceeded expectations
4) Well the knock offs obviously hurt apple's chances. The casual buyers who are not extensively researching about the phone will probably buy the knock off. This is because they see no difference in the phone so they assume it is the same product for a cheaper price. This would mean that Apple would sell less.
1. What barriers to entry exist in the market for mobile phones?
I think only one problem awaits a company that wants to sell anything and that is its name. The company somehow (if new) has to extremely appeal to its customers somehow. If this step works out then selling its new products will be much simpler than.
2. Why do you think so few firms produce mobile phones?
I believe it is because technology is developing more day by day and mobile phone companies are afraid to lose the money they put in for one product because that product may get replaced tomorrow or the next day.
3. Do you think Apple will be able to successfully penetrate the mobile market?
Back when this article was written I think I would've said no and that this was just a apple craze phase but now I am 100% sure that apple will penetrate the mobile market-thanks to the updates on all their products.
4. What threat do cheaper “knock-offs” of the Apple iPhone pose to Apples attempts to compete in China’s mobile market?
These "knock-offs" affect Apple in a tremendous way. If more people decide to buy phones that work/look like apple and cheaper then the average person WILL buy these "knock-offs". Which is a great threat on the Apple company because they will be paying the price (lost idea,money) for this deed.
Why I think Apple was a success with its iPhone?
I believe that Apple was simply a success with its iPhone because the phone was appealing to customers. Never had the customers ever had a touch screen phone before apple. I solely believe that the uniqueness of apple's iPhone led to its success.
Akshay Thakor 4TH
1) The one of the main barriers is build quality and price. alot of phones cost so much and they are not all that reliable and just keep breaking.
2)A few firms only exist because the word of the people spreads. if the phone is bad, consumers will go and tell everyone about there product. the consumers are advertising good products. thats why theres only a few out there.
3)I thought apple did penetrate the market. however i did not expect it to stay so awesome and a fad for a really long time. apple was talked about by everyone and everyone wanted it too. but as more consumers experience the product, the niche for ones that dont like it grows. thats where samsung came in and stole customers.
4)Apple will not sell any because everyone will by the knock off. as a result, bad things wiill be said about the knock off product and that will lead to bad talk and ruin the apple image.
apple was a success with the iphone because it provided something new. where everything was run microsoft for a really long time, people got bored of it. so when apple came it be, people found excitement in the thought and new ways to innovate the same idea and concept of the cell phone. this brought about people to like this new company and, like before, word spreads fast and that sparked apple.
Amita Batra
4th Period
1. There are barriers that exist with every innovation. Appealing to a target market in the right way seems to be one of the largest ones. If a product is not marketed properly, its success can be hindered no matter how remarkable the product truly is. Thus, it is crucial that companies analyze what appeals to the audience in order to help ensure the product's prosperity. Additionally, when creating something like the smart phone at the time it was created, that step is even more crucial. The audience has never seen a product like it before and thus, it is the company's job to overcome this barrier and make the audience feel the urge to know more and perhaps buy it.
2. With the mobile phone marker, there is so much capital investment required. Additionally, because today's society wants constants innovation, it is important to keep up with research in order to come up with something new and be over the top. Only then will consumers want to purchase it.
3.As we have seen over the year, Apple was able to successfully create a product that penetrated the market with great efficiency. Today, it seems almost as though every other person has a smart phone. The product's success can also be measured by the amount of smartphones that were created after the iPhone's launch. Only recently have other companies been able to create smart phones to compete with Apple. Thus, the reign of Apple smart phones lasted quite a while and with the stability present, it seems as though Apple was more than successful with the launch of its iPhone.
4. Knock-offs of the iPhone in China do possess a threat. However, for those Chinese consumers that want quality, they will have to buy the iPhone simply because knock-offs do not replace the quality of the original product. Additionally, American products always receive a positive response in other countries merely because they are American. Thus, knock-offs should not be of the greatest concern when discussing Apple's presence in China's mobile phone market.
Apple was successful because of its already established brand with the Mac desktop computer. Additionally, Apple combined some key features of a computer with an easy user interface and a mobile phone to create a product the world had never seen before. This new sense of innovation is most probably the biggest reason behind Apple's success in the mobile phone market.
Gabriel Camera
4th period
1- I believe the main barrier to enter the mobile phone market is the competition.
2- Few firms produce mobile phones because the big companies already have the consumers on their side and consumers do not really like to try new things. Especially, when they are costly.
3-Apple is a big company and many people know that from experience that Apple makes quality products.
4- Apple is a smart organization and they probably knew that people were going to copy, or at least try to copy the iPhone. I know they can easily eliminate the production of these fake phones.
-- Apple was successful with the iPhone because of so many followers and also their past success with other products.
Caleb Bledsoe - 3rd Period
1. A few barriers for entry into the mobile phone market would be competition. There are so many mobile phone makers all over the world that an amateur mobile phone maker wouldn't be able to withstand the experienced competitions pace. Another barrier would be getting people to buy your product. If consumers have been consistent in purchasing a certain type of mobile device, then they probably won't be as willing to purchase the new brand of mobile device.
2. Most firms are probably opposed to taking risks at losing money if their product doesn't soar or establish a name for itself in the mobile phone market.
3. Apple has definitely proven itself to be able to successfully penetrate the mobile market. Everyone and their grandmothers have iPhone's.
4. The knock-off versions of the Apple iPhone could potentially hurt Apple's sales. Many people see the cheaper alternative as the better choice so they'd purchase the cheaper knock-off version rather than the real deal Apple version.
1. The problem that persists in the mobile phone market is that many major companies that have already been successful with cellular devices dominant over others. They monopolize the market and have the power to kick out new competitors.
2. At the time when mobile phones were introduced, it was more of a luxury. Not all technological companies had to pursue the development of better mobile phones for the world. Now that everyone uses mobile phones, not everyone is making devices because its already to late to jump in. \
3. Apple has already successfully penetrated the mobile phone market with their newly innovative iPhone. Although it wasn't as hot during its first releases, over time the phenomenon of the iPhone widespread.
4. There isn't much threat to the market because cheaper phones even expensive phones are made for the desire of individual needs. Apple recently released the iPhone 5S, and a cheaper one the 5C. It just depends what individuals prefer. They are both good products.
The iPhone was a success because Apple already gave the public a good impression with their iPod. With the addition of multi-touch screen capability on the iPhone and its ease of access, it brought to people a lot of attention towards the iPhone.
1) Barriers that exist to start a phone into the mobile world is the fact that people just want something new. When iPhone 5s got the fingerprint technology, it was the coolest thing out therefore people wanted it. People just want to show off their phones with the new technology.
2) There are only a few firms that produce phones because of the fact that once a person likes a company it is hard for them to switch. Nokia brings out great phones that may be better than iPhone and Samsung but no one will dare be the first one to try it. It has to be accepted by the people which is a difficult task.
3)Apple did successfully penetrate the world market. I believe the innovative technology and design has made it a must have phone. It defeated a lot of the defects of other phones.
4)The cheaper knock-offs do not pose any threat to Apple. The knockoffs don't come close to the real thing. The knockoffs might have a similar design but the technology is not the same.
The iPhone has made its way to one of the top phones in the world. It shows that the phone has been appealed to the consumer and hasn't stopped working to relate to the new technology of the world.
1. Barriers that exist in the market today are established brands that already dominate the market for mobile phones. Also, being a competitor in an already competitive market. Some buyers may not see the value in purchasing a new phone without a vast enough difference.
2.I think that few firms go into mobile phones because of the risk factor. Unless one has a strong innovative idea the phone will not sell well. The consumer needs a quality never before seen in the phone for it to be popular.
3. I think Apple had a very good chance in successfully being able to be in the mobile phone market. Apple already had a strongly followed brand with their computers. The addition of the phone would be eeasy to continue.
4. Cheaper, identical phones pose some threat but not much to Apple. Many recognize that cheaper versions also produce less quality.
Apple was such a success with the iPhone because the iPhone provided innovation. Apple was able to reinvent the phone and not just duplicate existing phones.
Period 4
1. The mobile phone market, in the past and arguably even today, is an oligopoly of a few prominent companies. Since these few companies are so popular and successful, it is difficult for new companies to break through and be successful in the mobile phone market.
2. Since a small number of companies dominate the mobile phone market, it is difficult for new companies to be successful, which is likely why only a few forms produce mobile phones. It may also be difficult for new companies to create phones that differ from those already sold, since the major companies innovate rather rapidly.
3. Clearly, Apple has successfully penetrated the phone market. In retrospect. this might not have been such a total surprise due to Apple's success in other technological markets.
4. The iPhone "knock-offs" are a threat to Apple's success in the Chinese market because they provide people with a similar and cheaper alternative to Apple's product. This could decrease their desire to buy real iPhones, which would hurt Apple's success in China.
In my opinion, Apple's success with the iPhone lied in its uniqueness. At the time it came out, the iPhone was something new and innovative; there was nothing really like it. People were likely attracted to this newness, which helped Apple gain its initially success and popularity. Then, as Apple continued to innovate, its products stayed attractive to consumers, which greater increased its success.
Harrison You - 4th Period
1. Barriers include attempting to break into a market that is already monopolized by a few devices or companies. It was truly impressive that apple was able to flip around the whole market with one product. Not many products can break through these monopolies.
2. Few firms produce cell phones because a FEW firms dominate the market. Smaller, independent companies will face a difficult task competing against giant, global behemoths' resources, technological breakthroughs, and distributive capacities.
3. Apple did by creating a device that had a simple, easy to use interface,smooth processing, and a multitude of game changing features.
4. They pose no threat. As a Chinese American, I know that everyone in China wants the American version.
Jessica Dove
3rd Period
1. A barrier to entering the market for mobile phones can be seen through the fact that there are so many business out there already putting out the same product and advertising the same thing. It can also be seen through larger companies who control most of the market and get a lot of customers.
2. So few firms produce mobile phones today because of larger companies already controlling the market. A whole bunch of companies cannot be advertising the same exact product. There can only be so many mobile phones.
3. Apple was very successful at penetrating the mobile market. They had already established themselves and shown that they could make great products so when they came out with a phone everyone was eager to buy.
4. I do not believe that cheaper knock-offs pose much of a threat to apple. People are so intent on getting the real product that there should not be very much competition for them.
Anthony Chenevert
Period 3
1. A barrier that contributes to the mobile phone industries are the similarities that many phones have. Companies are find it hard to come up with new ideas since, pretty much, every phone company have the same accessories.
2. Competition is a great factor that contributes to the mobile phone industries because many companies are selling products and people are switching new companies everyday.
3.Apple is a very successful company due to their reliability and their credibility that they have with the customers. They sell products that make every wish they were apart of the apple family.
4.Personally, I do not think that the knock-off brands pose a threat to Apple, because now-a-days it's all about the name brand .
Brookley Torres
4th Period
1. The major barriers that Apple had to face when entering the market for mobile phones was to compete against already established companies. The other companies had already strong phone reputations and customers while Apple did not have any recognition as a phone company which could cause some people to be hesitant.
2.I think that the production of mobile phones is heavily dominated by a small amount of companies because it can be a hard business and item to produce and the market for mobile phones is often changing too fast for other companies to keep up.
3. Yes, Apple had created something new and innovative which would draw customers rather than just on phone reputation.
4. These cheaper knockoffs would make less people want to buy the Apple iphone because of the price difference and would be detrimental on profits.
I think that Apple was a successful company because they are continually making new innovations to the Iphone and try to stay a step ahead of the new technology. By building their reputation the Apple brand is also popular which causes more purchases to their phones. Apple also has a more aesthetic appeal which helps to appeal to consumers.
Per.1
1. At the time of the beginning of the iPhone, it was unheard of to find a mobile cellular phone that wasn't from one of the major companies. Apple, which was becoming popular for their computers, would be heavily scrutinized when trying to enter the cellphone business because of the other companies long lasting trust from the majority of consumers.
2. Few firms built mobile cellular phones because at the time the need for them did not seem to be a strong enough reason for them to risk a lot on a product. The cellphone was rather basic at that time, not really vary much from one phone to another which made it difficult to advertise your phone company as anything different than the older, more trusted companies.
3. Clearly, Apple is very successful in the cellphone industry. Once they hit the market, Apple took the cellphone world by storm and has quickly become a household name worldwide.
4. While cheaper version of the iPhone does come as an advantage price wise, the consumer must consider if this is worth a risk in the quality of phone their getting. Like any cellphone company, the knock offs do have some threat, but the overall integrity of the original product is unequaled.
I believe that the success of the iPhone is that it brought to the world a very new way to look at the phone. Sure, most were mobile and a few you could get on the internet with, but never had a phone been simply advertised as to be used like a computer. This set their product out from the others by a long way. They continue to change the general concept of their phones everyday, always staying a step ahead of the other companies. Finally, the iPhone is relatively easy to use which eliminates any need for one to know how to work around computer programs.This allowed them to have a large section of the consumer market interested and not limit their sales to only those that are tech savy.
Allen Jose
1st period
1. Barriers for a new mobile company is to breakthrough the other companies that are already dominating the mobile phone industry and to get the attention of the customers.
2. There are very few companies out there because of the competition that exists between the ones that are already out there. For a new company it might require a major technological breakthrough to the customers attention away from the other companies.
3. Apple certainly have successfully penetrated the mobile market and are certainly dominating.
4. Now a days they pose no real threat. People want the real thing not the knockoff versions.
Apple was such a success with the iPhone because of the fact that their idea was different and totally amazing compared to the others at that time. Apple created the next generation!
Mohammad Abdel-Aziz
Period 3
1.) A huge barrier that may have been a potential threat to Apple at the time was the fact that there were already so many well established cell phone companies. Another barrier was bringing something new and innovative to the market.
2.)I think so few firms produce cell phones because of the barriers and the fact that they'd have to bring something new to the market that no other company has brought. If they can't do this what differentiated them from the already well established companies?
3.) If I were to answer this question 6 years ago I would have said no, they wouldn't have been able to penetrate the market because of the limited room to grow withing the cell phone market. I never once thought of a cell phone so innovative like the iphone.
4.)The knock-offs are a threat because they look virtually the same, perform on a bit of a lower standard, and are noticeably cheaper. This would push people to buy these knock-offs.
I believe it was successful because of the innovation and diversity it introduced to the cell phone market. With the iphone came the generation of smart phones which have literally transformed the world we live in.
1. Plenty of barriers exist. Many consumers are interested in buying devices that are time tested and have names that they can trust. Also, especially true back in 2007, phones were expected to do very little functions and those functions were basic and its difficult to compete with something so basic. This however is not always true, as Apple has proven, innovation is possible and profitable.
2. So few firms produce mobile phones, first, because of the entry difficulties, but even more so because once you get in, you have to work hard to stay in. First impressions are everything. Staying ahead of the game is a must, innovation is mandatory. If you don't keep up, you lose. Like Blackberry.
3.Yes, not only has Apple penetrated the mobile market they have almost dominated it and pioneered the smart phone market. like I said, innovation can help expand existing markets and that is what Apple has done.
4.Fake iPhones hurt Apple because they offer cheaper alternatives and essentially steal the profits that Apple should be getting for the real deal.
1. The biggest barrier for apple then was innovation. The biggest reason someone buys a technological product is the fact that it is better in some sort of way, let this be faster, lighter, or more importantly innovative. When Apple released there iPhone back in the day it was starkly different and innovative. This difference of all touch screen except for one button, proprietary asscesories, and most Importantly the iTunes compatibility. With iPod being a success, all the iPhone happened to be was a new iPod, with a phone, and internet. The newest most innovative technology out there.
2. Few firms produce phones because thee are so many OEM manufactures making the screens, boards, batteries, etc. that the real money isn't in the phone... It's in the parts.
3. Yes I believe the iPhone did stellar,continues to do so, and will continue to do so as long as there is innovation
4. The reason people buy fakes is because they want the real. So as long as Apple maintains popularity and innovation the fakes will never be able to take over the market because they do not innovate, only copy. Plus the fake will sell more as long as the real deal is better, and generating the desire for fakes, hence creating a market.
1. The biggest barrier when entering the phone company is resources. One would need to find very innovative people in an already competitive society. One would also need the capital to advertise your product.
2. Few firms produce phones because of the high competition and the high risk of failing
3. With Apple's enormous profits from the iPhone, I would say they are very successful and continue to dominate the mobile industry.
4. Honestly, I don't think "knock off" phones are a real threat. This is because the consumer is not going to take the risk of buying a cheap fake phone that may not work right. People want to real thing.
I believe Apple was successful because they had a great leader who was ready to innovate(Steve Jobs).
Prerna Kamnani
Period 1
1. What barriers to entry exist in the market for mobile phones?A barrier that exists and that will persist is the competition. Companies have definitely progressed significantly with their mobile phone models. Also, innovation is key. There are so many new features and options on every smart phone now that it becomes difficult to enter the market unless they have something groundbreaking. Additionally, the practicality, size, speed, efficiency are all important factors that a phone must require. Along with all those factors, it must have a reasonable price for the quality. To achieve that balance between the price and the features is a significant barrier.
2. Why do you think so few firms produce mobile phones?
I believe few firms produce mobile phones once again because of the competition. If a small firm began to produce mobile phones, it would be overwhelmed by the highly competitive market and ultimately fail. The firms that produce the phones have vast amount of resources and capabilities to produce the best. Everyone is looking for the next best thing. A small firm will not be able to achieve all the features in the next best phone while complying to their financial status.
3. Do you think Apple will be able to successfully penetrate the mobile market?
I think Apple has successfully penetrated the mobile market. Although other companies have made significant progress, Apple remains to be one of the top mobile phone companies. I think Apple’s simplicity and versatility with their phones puts them ahead of the others. Additionally, Apple has pioneered many other great devices such as the iPod and the first touch screen phone. Being a pioneer in technology, Apple has been able to gain the trust of the public.
4. What threat do cheaper “knock-offs” of the Apple iPhone pose to Apples attempts to compete in China’s mobile market?
Although those “knock-offs” are cheaper, their quality will cause them not to pose a threat to Apple’s iPhone. I believe people are willing to pay more for a quality item rather than pay less for bad quality. Now the knock offs do pose a threat in the sense where they would be able to harm the reputation of Apple. If people misunderstand the knock offs as real, then customers may start to stop trusting Apple. The knock offs could be harmful in the sense that customers would begin looking elsewhere for mobile devices.
Apple’s success stems from the universality of their phone. The iPhone is probably the most globally used phone. Its simplicity and flexibility are key reasons as to why Apple beats the other providers. Apple creates great customer service and make the entire buying process an ease. Being an iPhone user, I can personally say Apple does a good job with their customer service. Apple continuously is developing new models to satisfy the customers need and stay up to date with what their customers want.
Matthew Francis
Period 3
1. The barriers which stood in the way of Apple is originally the need to understand a new market which they had not previously tapped into. The preexisting companies would obviously not surrender their market to a newcomer who created an odd operating system for the time.
2. The reason a low number of firms create cell phones is the fact that there is the consumer mentality in trusting the commonly known product unless the new one offers abilities far surpassing the older. Also, the companies that exist now would have deals with the people who manage their resources, unlike the up and cooking business.
3. The new and innovative ways one is able to use their Apple devices make it an investment many like. The revolution caused by Apple which popularized the smartphone to the general public became a faint surge which separated Apple from companies that did not change such as Nokia for a long time.
4. The Chinese market, which Apple has been trying to lure in, has a large diversity of incomes, so the iPhoneC was a cell phone geared towards the consumer of that region. The cell phone would be up to date but would not be as expensive as the to of the line iPhone. Also, the trend in Far Eastern cellphones are bright colors and the such.
Period 4
1) The barriers for a new mobile company are the fact of having already powerful competitors and attempting people to switch mobile phones with not having the whole hard transition to get use to the phone.
2) I think that since many of the large companies already have a big name that some investors might want to appeal their phone design to the larger companies to have a higher chance of making money than having to create their own company and support it with tons of revenues.
3) Well before the iPhone idea, Apple already had millions from the iPod series. With many people knowing Apple from their easy to use iPods, most users were most likely to have a smooth transition into the iPhone 3G since it was very similar to the iPod generation around that time.
4) Eventually with the Cheap Knock off brands everyone will know the big difference between the fake product and the real iPhone. With Apple growing much more and expanding to people around the world, people will easily be able to spot the real from the fake.
1. For the entry market to mobile phones, the barriers that exist are many and quite huge. The first is the opportunity cost of devil ping and manufacturing your product. These costs can be extremely high, and many companies go bust before they even get their product out. The second barrier is publicity. In order to have a successful product one needs to create a social scene around it...something apple has done very well. They've created a pop culture phenomenon as well as fashion accessory, which has made the I product so successful. Finally, another barrier is product sustainability. One needs to keep changing and improving and adding more "wow" factor to their product in order to keep their customer base, which is something apple is starting to lose. Recently, as confirmed by internal reports at apple, iPhone sales growth is slowing and is innovation is starting to lag behind other cell phone manufacturers.
2. So few firms produce mobile phones because of the popularity aspect of phones. The truth is that many phones are made, but very few are successful enough to survive multiple iterations. A phone has to bring something new to a market.
3.apple has successfully penetrated the market because of the reasons I stated earlier. They created a simple easy to use mobile device that does what the average user requests of it. And by being the first really successful device they've also created a product icon.
4.the knock off iPhone business has actually flopped, and now these same knock off companies have gone into making original phones that sometimes actually surpass the iPhone in quality and features (re: Oneplus One) and are way cheaper. These products, however, lack the popularity that the iPhone does and thus will never be as successful.
1. According to the Pie chart, other major providers exist in the mobile market. This renders the Apple product as 'foreign' to the consumers. Because consumers are already familiar with the leading providers like Samsung, Nokia, and Motorola, it may be difficult for Apple, a new, foreign brand to gain the loyalty of consumers.
2. So few firms delve in the business of producing mobile phones because mobile phone companies do the exact same thing. A phone can be used in variety of ways, however, it's main purpose is communication. Thus, each company has very little to offer other than better communication. Essentially, there is no BIG noticeable difference between phones.
3. Definitely. As the commercial demonstrated, Apple took the limited variety of uses for a phone and broadened it! The myriad of apps distinguishes Apple from the other firms. It's product is more than just a communicating device, but its made for ANYTHING that can make the consumer's life happier. Even though it was a new firm, its advertising and overall quality distinguished it from the rest.
4. Cheaper knock-offs of Apple iPhone 'steal' the competition from Apple. The unfair competition is exemplified through dumping by China's mobile market, that is selling their fake iPhone for a cheaper price in order to entice consumers to buy their products. Thus ensuring that the 'little guys' ( in this case Apple ) go out of business.
With everything against hem, how did Apple become a success with the iPhone. Again, through advertising and general promotion, it was able to separate itself from the firms by providing various uses for the iPhone, not just sound quality or communication but apps for bettering the consumer's life. Moreover, it attained distinction from fake iPhones through its quality. According to the guy on the video, the fake iPhones felt “cheaper” and could not charge; surely, even with the cheaper prices, fake iPhones were no match for the real deal.
1. According to the Pie chart, other major providers exist in the mobile market. This renders the Apple product as 'foreign' to the consumers. Because consumers are already familiar with the leading providers like Samsung, Nokia, and Motorola, it may be difficult for Apple, a new, foreign brand to gain the loyalty of consumers.
2. So few firms delve in the business of producing mobile phones because mobile phone companies do the exact same thing. A phone can be used in variety of ways, however, it's main purpose is communication. Thus, each company has very little to offer other than better communication. Essentially, there is no BIG noticeable difference between phones.
3. Definitely. As the commercial demonstrated, Apple took the limited variety of uses for a phone and broadened it! The myriad of apps distinguishes Apple from the other firms. It's product is more than just a communicating device, but its made for ANYTHING that can make the consumer's life happier. Even though it was a new firm, its advertising and overall quality distinguished it from the rest.
4. Cheaper knock-offs of Apple iPhone 'steal' the competition from Apple. The unfair competition is exemplified through dumping by China's mobile market, that is selling their fake iPhone for a cheaper price in order to entice consumers to buy their products. Thus ensuring that the 'little guys' ( in this case Apple ) go out of business.
With everything against hem, how did Apple become a success with the iPhone. Again, through advertising and general promotion, it was able to separate itself from the firms by providing various uses for the iPhone, not just sound quality or communication but apps for bettering the consumer's life. Moreover, it attained distinction from fake iPhones through its quality. According to the guy on the video, the fake iPhones felt “cheaper” and could not charge; surely, even with the cheaper prices, fake iPhones were no match for the real deal.
1. According to the Pie chart, other major providers exist in the mobile market. This renders the Apple product as 'foreign' to the consumers. Because consumers are already familiar with the leading providers like Samsung, Nokia, and Motorola, it may be difficult for Apple, a new, foreign brand to gain the loyalty of consumers.
2. So few firms delve in the business of producing mobile phones because mobile phone companies do the exact same thing. A phone can be used in variety of ways, however, it's main purpose is communication. Thus, each company has very little to offer other than better communication. Essentially, there is no BIG noticeable difference between phones.
3. Definitely. As the commercial demonstrated, Apple took the limited variety of uses for a phone and broadened it! The myriad of apps distinguishes Apple from the other firms. It's product is more than just a communicating device, but its made for ANYTHING that can make the consumer's life happier. Even though it was a new firm, its advertising and overall quality distinguished it from the rest.
4. Cheaper knock-offs of Apple iPhone 'steal' the competition from Apple. The unfair competition is exemplified through dumping by China's mobile market, that is selling their fake iPhone for a cheaper price in order to entice consumers to buy their products. Thus ensuring that the 'little guys' ( in this case Apple ) go out of business.
With everything against hem, how did Apple become a success with the iPhone. Again, through advertising and general promotion, it was able to separate itself from the firms by providing various uses for the iPhone, not just sound quality or communication but apps for bettering the consumer's life. Moreover, it attained distinction from fake iPhones through its quality. According to the guy on the video, the fake iPhones felt “cheaper” and could not charge; surely, even with the cheaper prices, fake iPhones were no match for the real deal.
ALVIN MEI
4TH PERIOD
1. What barriers to entry exist in the market for mobile phones?
Being innovative and having a name and a logo that will be appealing to the public. If the product is not super innovative or appealing, people will still abide by the most commonly used brands. Other barriers include costs and the taste of customers, which directs us back to being innovative or appealing.
2. Why do you think so few firms produce mobile phones?
Because big companies already dominate the market. It is hard for companies to invest so much time and money into mobile phones only to expect a risky investment. Some firms do not possess the ability to be as innovative and appealing as other companies.
3. Do you think Apple will be able to successfully penetrate the mobile market?
Without a doubt, apple have been around since the first computer. The innovation within Steve Jobs is what drove the company to success, is what brought the companies up at this high standard. Their insistent updates and innovation has caught the eyes of many people all over the world, putting value in the name, not only the technology.
4. What threat do cheaper “knock-offs” of the Apple iPhone pose to Apples attempts to compete in China’s mobile market?
The pose very little threat. Knock off brands of apple will never be able to compare to the real thing. Most likely, people will either get tired or having a cheap phone and go buy an iPhone.
1. This is because many companies have been shown to be more reliable to newcomers, and so no visible problems with said companies allow for satisfaction of the consumer. The second the consumers are more unsatisfied the more likely they are to buy another type of phone company. The lack of need for more brands of phone exacerbates this issue.
2.This is because they are already well established in communications circles, and so are the ones deemed more reliable for usage.
3. Apple has a prior history of creating new products with their I-Pod lineup and so the phone industry would be a cake walk for them as they have experience in other technological fields.
4. It poses nothing as they are not as usable as the phone itself. A knockoff can only imitate so much allowing for the original name brand to have much more success that the funds knockoffs create will not all for them to have.
The simple truth behind the Apple I-Phone is that it is aesthetically pleasing, easy to use, and capable of functions with ease. This allows for Apple to dominate the market as they cater to those who no know much about technology or whom like the quality in general better such as with their laptops and I-Pods. The ease of the Apple I=Phone will keep Apple in the race for more.
saira sultan pd. 3
1. i think a leading barrier was that apple was seen as the people that had to with items such as ipods rather than cellphones.
2. i believe that most phone companies have established themselves at this point and are competing between each other if another company tried to get started they would most likely fail due to lack of consumer support.
3.i think apple has almost completely taken over the phone market nearly everyone you talk to will have an iphone as well as some kind of accessory.
4. the cheaper knock offs tend to take customers away from apple, however, personally i believe the number will be so small it could not possibly affect apple in a dramatic way.
i believe apple's great method for advertising as well as their uniqueness is the reason for their success in the cellphone industry.
1) The are two main barriers that exist for new comers in the phone market. The first would be the money you are able to invest in advertisement and product endorsement in comparison to those companies who have majorities in the industry and the other problem is that their product has to be innovative enough to shake the market and restructure it to be truly successful. This can pose a problem because knock offs tend to pop up a lot.
2) In order to have a good mobile phone the product needs to receive constant updates and constant alterations unlike making a computer or i don't know lets say microwave. Cell phones must be constantly updated and worked on even altering bought. Producing cell phones costs a lot of capita and more importantly commitment.
3) Well seeing as we know the answer to that question is obviously YES they were able to successfully penetrate the cell phone market. Lets discuss the why. Them main reason i think the iPhone was successful because the itouch had already been very successful by the time the iPhone was real ease and so anyone looking to buy an touch bought a iPhone instead because it was essentially two products in one device.
4) Knockoffs only pose a threat when the company and product is still being established however if the name has already been made then the they pose no threat.
Apple had success with the iPhone because they were innovative and created a product that many wanted.
What barriers to entry exist in the market for mobile phones?
Economies of scale are one of the largest barriers to consider when entering the market for mobile phones. It is very hard for a small new firm to benefit from the large economies of scale that existing companies have. Producing a mobile phone takes a lot of expensive research and testing which needs to take before a company can even consider producing a phone. There is also the barrier of gaining customers. Many mobile phone companies force customers to sign contracts that require them to stay with their company for some time. This would make it very difficult for a new mobile phone company to gain new customers. Doing so would require very pricey ads and discounts.
Why do you think so few firms produce mobile phones?
One of the largest factors that explain why there are few firms that produce mobile phones is the barriers of entry. It would be very difficult for a new company to enter the market with very much success. The mobile phone industry is very hard for certain companies to do well in do the constantly changing technology that needs to be applied to the phones. Firms need to constantly change their business model in order to satisfy customers. Many mobile phone companies have gone bankrupt or bought out in recent years.
Do you think Apple will be able to successfully penetrate the mobile market?
I think that it is safe to say that Apple was successful in their penetration into the mobile market. The reason they were able to be extremely successful as a mobile phone firm was due to multiple reasons. Prior to entering the mobile phone market they were already very established as a company in the computer and mp3 markets. This allowed them to cover the financial barriers of entry as well as the publicity. The phone they first released was taken very by consumers due to its advertising and design. They were able to take many of their previous consumers of ipods and introduce them to a phone that is an ipod as well as a smart phone. I would say that they have been successful in entering and making a mark on the mobile market.
What threat do cheaper “knock-offs” of the Apple iPhone pose to Apples attempts to compete in China’s mobile market?
The knock-off phones do pose a large threat to Apple. These phones are sold at a much cheaper price than Apple offers their phones for. Apple can avoid this threat in using their advertising campaigns. I think that this does not pose a huge problem for Apple due to the fact that consumers tend to “buy into” the company as a whole and not just the mobile devices. Apple competes on the basis of non-price competition.
1.Producing a mobile phone takes a lot of expensive research and testing which needs to take before a company can even consider producing a phone
2.The mobile phone industry is very hard for certain companies to do well in do the constantly changing technology that needs to be applied to the phones.
3.Prior to entering the mobile phone market they were already very established as a company in the computer and mp3 markets
4.I think that this does not pose a huge problem for Apple due to the fact that consumers tend to "buy into" the company as a whole and not just the mobile devices.
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