Mobile Phone Product Life Cycle
Mobile phone is still in the growth stage, but it’s getting to the end of the growth stage and turning into maturity stage. With this being said, I do think that it can go back to the earlier part of the growth stage when technology is advanced. Yes, time travel! There is no doubt that Apple Inc. is the time machine here. Apple Inc. basically changes the cell phone industry since they introduced the first iphone in 2007. If the same question was asked in 2005 or 2006, I believe most people will answer mobile phone is already in the maturity stage. Apple Inc. essentially shifted the cell phone industry from the maturity stage back to the growth stage in 2007.
Features that characterize mobile phone is in the growth stage:
Increase in public awareness
Mobile phone industry is growing so fast that it has become a necessity. Mobile phones used to be viewed as a luxury or just for working professional. Nowadays, even a teenager has a cell phone. Parents are getting mobile phones for their children because they want to communicate in case of an emergency, or to know where they are. For a lot of people, cell phone is already part of their lives. Customers are very familiar with the cell phone products and they are deciding which models to buy, but not whether they should buy. Customers are comparing features of different phones before they make the purchase.
Increase in sales volume
According to a market report by Gartner, Inc. (http://www.gartner.com/it/page.jsp?id=1924314), the total mobile device sales are about 1.8 billion units in 2011, an 11% increase from 2010. For smartphone, 472 million units are sold in 2011, up 58 percent from 2010. The smartphone sales accounted for 31 percent of all mobile devices sales. The cell phone industry has become increasingly larger as a result of more affordable phones. Profits increase because cost is reduced due to sales volume.
Competition is intensified
Samsung, Apple, Nokia, Motorola, ZTE, RIM, HTC and Sony
Features that characterize mobile phone is in the growth stage:
Increase in public awareness
Mobile phone industry is growing so fast that it has become a necessity. Mobile phones used to be viewed as a luxury or just for working professional. Nowadays, even a teenager has a cell phone. Parents are getting mobile phones for their children because they want to communicate in case of an emergency, or to know where they are. For a lot of people, cell phone is already part of their lives. Customers are very familiar with the cell phone products and they are deciding which models to buy, but not whether they should buy. Customers are comparing features of different phones before they make the purchase.
Increase in sales volume
According to a market report by Gartner, Inc. (http://www.gartner.com/it/page.jsp?id=1924314), the total mobile device sales are about 1.8 billion units in 2011, an 11% increase from 2010. For smartphone, 472 million units are sold in 2011, up 58 percent from 2010. The smartphone sales accounted for 31 percent of all mobile devices sales. The cell phone industry has become increasingly larger as a result of more affordable phones. Profits increase because cost is reduced due to sales volume.
Competition is intensified
Samsung, Apple, Nokia, Motorola, ZTE, RIM, HTC and Sony