The future of smartphone market

The future of smartphone market

The future of smartphone market

It is certain that smartphone market is one of the most profitable businesses today ,but the questions is ,will it remain like this? The answers are different ,some people say this market will continue to yield ,some other simply disagree.

The importance of a market is usually determined by different factors ,such as its share of a country's economy, its total value and so forth. As a result ,handheld devices market is truly crucial to economies like U.S or Japan. To further clarify its importance , we must pay attention to the fact that smartphone market is actually a part of a bigger market , IT. On the other hand, the hydra of smartphone market has another head in Telecommunication market, so smartphone companies` future affects the situation of two major sectors of U.S economy.

The general public is quite optimistic about this market ,and ironically , that's what raises suspicion. Usually, after a technological breakthrough ,some markets start to grow rapidly like the computer market in the 90`s or the oil market before that. This process creates an economic state which is known as a bubble. A bubble is market that has reached its peak , and is ready to fall. " But the smartphone market is different, it`s all innovation and creativity" you might well say. Believe it or not, this statement has been said about all of the previous bubbly markets. In fact, over-confident markets are usually the bubbly ones.

The anatomy of a bubble consists of three major parts: a successful market that looked impressive since its advent , a long list of companies which are booming in that market , and a relatively crowded line of pursuers who dream about being as successful as their role models. It is clear that the anatomy of a bubble is an over crowded version of normal markets, so the competition is intense which results in more and more competitive efforts( supply).It is important to distinguish "thriving innovation" form " too much supply" , as it is common among people to speculate that newly introduced technologies are always signs of development. The truth is , this opinion is not totally wrong ,but it should be modified. The wide range of new technologies is a good sign of growth , but it does not necessarily predict a good future for the economy.

A good economy is an economy which has maintained an acceptable balance between supply and demand, this unfortunately , is not true about most economies today, but smartphone market used to be an exception , however the situation is changing . Now, smartphone market is considered an eternally profitable market, because of some emotional and cognitive tendencies of people .Furthermore most pundits usually try to find ways to agree with the crowd. And what happens when people start to like a market? The answer is obvious, the prices rise and more people become interested in investing in that particular market, and the process perpetuates itself until the real factor manifests itself, " Supply & Demand". Although "supply and demand" is a famous collocation in every economy course or book, because of an exaggerated stock market , it is often underestimated or even forgotten. Judging on any basis, it can be understood that the more people demand a product , the more it should be supplied. But soon the demand for mobile phone diminishes , because most of the general public will buy what they need and stop buying afterwards. The cravings for new models dwindles down , but contrarily the emerging smartphone companies wont stop injecting products to the market , and we are all familiar with what happens consequently.

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