Chapter 10

Link:http://www.economist.com/business/displaystory.cfm?story_id=13832338
Summary
Smart phones are everywhere. People in these modern times love to have the access of checking their mail, going on the web, checking on their business all on a phone. However, even though it seems there are more smart phones out there, the mobile-industry recently announced that they predict a 4% drop in sales. This is strange because even though there is going to be a 4% drop in sales, many companies such as Nokia, Palm, and Apple are producing new phones. On Jun 6th the company Palm showed their newly hand held device called the Pre. After two days, Apple produced their new iPhone which was called the iPhone S. Now the price of the old iPhone went from $199 to $99.

Connection
This article is related to the chapter because it is an example of oligopoly. Oligopoly is when a market or industry is dominated by a small number of sellers called oligopolists. Because there are so small numbers of competitors, each company knows their competitor really well and when thinks happen they know very quickly. Since the Palm came out on June 6, Apple felt the need to outshine them by coming out with a new iPhone which had more applications with it. With the new iPhone, they hope to induce more costumers to keep the new Palm device out of the big picture.

Reflection
I feel that the iPhone will continue to big a big seller even though there is a recession going on. Apple products have always been very popular and they will probably continue being popular because of all the commercial in the media. Its good to see such a small competiting circle between this market groups because then they can work on producing new materials every time. However, I think that the iPhone S is the same as an iPhone except that the extra applications is suppose to attract more customers. Hopefully the next time Apple Company produces a new item, it will be more then just a few applications.

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