Economics Essay

Smartphones are a new wave of technology that has experienced a boom in growth despite the economic recession, according to a study by ComScore, over 45.5 million people in the United States owned smartphones in 2010 and it is the fastest growing segment of the mobile phone market, which comprised 234 million subscribers in the years. Essentially a smartphone is a handheld computer integrated with mobile phone features users can install advanced programs as if the phone is a computer.
The economic behaviour of any product is based on two factors the demand for the product and the supply of the product.
The demand for smartphones has risen exponentially in the last few years primarily due to the business applications of the smartphone. The iPhone was released in 2007 and was the first smartphone to have a multi-touch user interface. The demand for the phone became extremely high as many websites and technology reviewers said the iPhone at the time was so much better than its competitors. Therefore the demand for the iPhone rose more so from its competitors, in the mind of consumers the iPhone is the best smartphone. The Chart shows the rising demand for the iPhone after reviewers hailed the iPhone as technically superior to any product out there. In conclusion the demand for such high tech products is heavily influenced by the reviews it receives. This is hardly unsurprising because smartphones must be user friendly since the phone should be fully customizable to the user as the phone is a small part to the applications it provides.
This brings us to another important aspect for the smartphone market demand the “apps” the smartphone provides. The applications or “apps” as they are popularly known are the complements to the iPhone. This is another way in which the Apple iPhone has managed to stay ahead of their competitors, Apple had created The App Store built in into each of the iPhones, this has allowed users to easily locate and download the apps they want... [continues]

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