Mobile Phone Demand Case Study

The demand of mobile phones is determined by many factors. The main factor is the price which has a direct impact on demanded quantities as per the law of demand. Unfortunately, I was not able to get official statistics on prices however, it is very common that electronic products including mobile phones are expensive during the first stage of product invention. Therefore, the price of mobile phones when they were introduced in the 90s was much more than it is nowadays. During the period from 2000 until 2011, there was a drop down in the price. In 2012 with the introduction of high-speed mobile broadband 4G LTE, the prices were uplifted however, the quantity demanded shot up and that was due to the introduced complementary product, which was
The advertisements played a significant role in the increase in demand which was influenced by the increase in information flows that resulted from the expanded use of internet. In addition, many consumers tends to imitate or mimic what other consumers do. So, when there is a new product spread in the market and many people acquire it, the rest of people tend to do the same as either a matter of keeping up with the time or just a matter of mimicking. The last factor that similarly affected the demand of mobile phones was the expected future prices. When there is a new developed product introduced it is normally penetrating the market through the innovation that it has and therefore attracting people to acquire regardless to the initial high set price. Most of the people in Oman tend to wait as they know that the price will drop after sometime. Thus, demand in quantity for such products normally drops in Oman compared to some other Gulf countries in which consumers have higher income.
On the other hand, the supply is affected in a direct proportional to the increase in demand. Consequently, when consumers have shifted from depending on computers to the use of smart mobile phones, the demand was significantly increased and suppliers were rushing
In addition, statistics from Internet World Stats report shows that Oman has a high penetration rate of internet usage, which supports my concept of correlating the increase in mobile phone with the growth in the internet usage. Speaking to the Times of Oman, Mohammed Yahya Al Salmi, Senior Manager Corporate Communications at Omantel, has mentioned that there has been a remarkable growth in mobile phone services in the past 10 years in Oman. He said that "By the end of 2013, mobile subscriptions have grown by nine-fold compared to