Threat Analysis For Smart Phone in us Market

In general the smartphone market is rapidly changing, with constant product introductions.
It is characterized by quickly evolving technology and designs, short product life cycles, aggressive
pricing, rapid imitation of product and technological advancements, and highly price sensitive
consumers. Self-elasticity and cross-elasticity are high. No one firm in the market has sufficient
market share to control prices, resulting is strong rivalry and competitive pricing. The barriers to
entry are high due to the existence of patents, high fixed costs and economies of scale, regulation,
and brand loyalty.
The individual market participants engage in attempts at product differentiation, some being
more successful than others. The standout is Apple, which has successfully differentiated its iPhone,
and stands a good chance of maintaining that differentiation due to its closed and all-inclusive model
or development and use.