Smartphones market is a good example to show that the advances in technology that can reduce the input cost of production easily by shifts in a supply curve. In this 21st century, technology became advances that can improve the efficiency of production and this will cause the supply curve shift to the right. The lower the cost of production goes will affect the consumer demand more smartphones at the lower price.
Based on my research from Evalueserva, Nokia, one of the famous smartphones or largest smartphones manufacturer has fall its average selling prices about 39% from 2005 to 2009. So, the manufacturers keep trying their best to produce a good quality of their smartphones and lower the cost of production to let their average selling price increase as much as it can.
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Based on the information, I had made out a conclude that consumer can purchase more smartphones at a lower price and this will cause the supply curve shift to the right. Smartphones that cost several thousand dollars a few years ago and nowadays can be purchased at a few hundred dollars, and the storage and the speed of the processor are almost the same with the new phone which cost thousand dollars.
Changes in smartphones market can affect the demand of smartphones or can affect the demand for the product that are related. So, smartphones market will keep increase the demand for a new product and this will cause the older products become obsolete.
Going back to the example of how they affected the supplies and prices of smartphones. Nowadays, our technology became more advanced than before so that technology also created a market for smartphones which the performance is almost the same compared with the older smartphones. The new smartphones size is smaller but full screen, camera is clearer and the most important are the price are almost the same compared with the older one.
As a result, the demand for the older smartphones has been reduced because of the new smartphones. In smartphones market, technology in advance constantly changing the landscape with the new products and eliminate the older products. So, manufacturers continue their main mission to let their technology became more advanced, the demand and supply for products are always changing by the consumers’ taste.
In a nutshell, the elasticity in economy helps smartphones market or supplier to understand the needs of consumers, taste of consumers. They also can build a good relationship with the consumers by having a connection or interact with consumers. In conclusion, technology became more advanced, it is impossible to monopolize a market for a long period. As a market breaks down from a monopoly into different market structures, The pricing of a product is the key to obtain bigger market shares.
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