SmartPhones in the United States

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Presentation transcript:

SmartPhones- 2015 in the United States Gregory Swenson Nicholas Lantieri

What is a Smartphone? A smartphone can perform many tasks. It is a mobile phone that has advanced connectivity, computing capabilities, advanced multimedia and allows the user to connect to the internet. Smartphones allow users to easily connect with the world. Some Uses -SMS/Text Messaging -Email -Web Browsing -Mobile Shopping -Mobile Banking -GPS -Online Music -Games -Social Networking -News -Applications -Phone Calls

Background On Smartphone Market in United States Average Price is $531 for a top of the line smartphone Total Revenue in the United States is 51.3 billion dollars 4 Major Rivals -Apple, Android, Microsoft, BlackBerry Android owns 52.1% of the market Apple owns 43.5% of the market Microsoft owns 3% of the market BlackBerry owns 1.3% of the market It is a Monopoly Market Nearly two-thirds of American Adults own a SmartPhone

PORTER’S FIVE FORCES The five forces that shape industry competition. -Rivalry -Threat of New Entrants -Suppliers -Customers -Substitutes

1- Rivalry (Intense) Apple (iPhone 6s) Android (Samsung Galaxy Edge 6s) Microsoft Windows (Nokia Lumia 950 XL) BlackBerry (Priv) -Fast Industry Growth Rate -Low Product Differentiation (commodities) -High Margins -Brand Identity -Large Industry Size -All these competitors are powerhouses

2- Threat of New Entrants (Medium) -Strong brand names are important and there are already many in place -Advanced Technologies are required -Entry barriers are high -High switching costs for customers -Patents limit new competition However, it is not impossible for new entrants.

3- Power of Suppliers (Medium) -High Competition between suppliers -Large Number of substitutes -Customers will buy other smartphones if prices go up to high -Wireless companies offer deals to consumers so this hurts the power of suppliers

4- Power of Customers (High) -Low Product Differentiation -Many different choices -Increasing Buyer Volume -Price Sensitive -Wireless companies offer plans to help consumers

5- Threat of Substitutes (Medium) -Smartphones are too popular -They have become a part of culture -Smartphones are so important in business and communication -Other choices are obsolete -However, if prices do get too high, the consumers will find alternatives