According to Oxford Dictionaries, a product is considered as “an article or substance that is manufactured or refined for sale.” Companies manufacture and refine so many things and sell them at a price that is supposed to be best for the economy. Take the mobile phone for example, an expensive manufactured article that was designed for vehicles in the early 1900’s. Mobile phones were expensive and bulky with very limited range for reception. AT;T was the first to promote the product which overtime grew and became more urbane for todays use. We will discuss the influences of the supply and demand of mobile phones while looking at the equilibrium price and how it expanded.
There is a huge market for mobile phones all over the world and the sales for a mobile phone continued to grow throughout the years but became lower by the 2000s depending on the device you bought. People gave up their land lines for mobile phones because mobile phones was more convenient and cheaper. Texting was another big push for mobile phones since lane lines were not able to do so. People prefer to text now days given the flexibility of sending a message at any time and accessing them when it is convenient (Hartman, 2018). I know texting is very important to people that are shy and attracts those that do not like speaking on the phone. Some modern citizens conduct phone calls at work and texting came in handy because they did not have to worry about speaking loudly and disrupting others. Having the internet at your hands was a big demand especially whenever you need for consumers who wanted to surf the web or conduct business through emails. When the internet came available, watching movies, playing games and camera phones was a huge success on mobile phones. Having a mobile phone with all this at your fingertips made a huge rise in demand for this product.
The market for mobile phones is swiftly becoming the dominant computer and an electronic communication product in everyday lives. The market has created several different venders for this product to sell. The major venders AT;T, Verizon, T-Mobile and Sprint which sell different styles and brands of mobile devices for the customer to purchase for a healthy price. An anonymous reporter stated that “The mobile phone market saw temporary calm in the beginning of 2005 the whole mobile phone market was static. Mobile phone manufactures launched the MP3 mobile phones one after another, along with potential demand from consumers. It is forecasted that the sales volume of the MP3 mobile phone will account for more than 58% in the whole mobile phone market in 2007, about 62 million sets, and the popularization trend has been clear” (The mobile phone, 2007).
When it comes down to supply and demand of the mobile cell phone versus the equilibrium price keep in mind how important and expensive mobile phones are. The significance of mobile phones in recent civilization have become a requirement and almost a need for many people to live. Earlier I discussed a few reasons why people like using the mobile cell phone far as easy access to internet for work or even handling important discussion with family and friends. When mobile phones hit the market overtime the consumers wanted more that is why the manufactures came up with texting, loading data and camera phones. There were small issues with the mobile phone far as signal but over time reception improved and now there are satellites and towers all over to accommodate the demand for mobile phone usage. Manufactures promote the product with incentives like the more lines you get the lesser the price or more data. The reputation of mobile phones has amplified the struggle in the wireless communication of electronic business creating mobile phones that are affordable and easy to use. Think about everywhere you go someone is on their phone, your grandmother probably has a phone with a Facebook account. Mobile phones are a part of our lives and make it very convent for people. The mobile phone demonstrates how enhanced technology is and improved supply can lower prices as the demand rises. The price of a mobile phone has reached the amount demanded to balance out the amount supplied.
I think within the next decade the price of mobile phones is estimating to fall because of enlarged competition and such a big supply of manufactures. Mobile phones prices may reduce due to telecommunication businesses that sponsor mobile phones that lock customers into contracts. The smartphones now cost anywhere to $400 to $1,000 depending on the phone and company you go with, so they lower the cost by having you pay a monthly bill with a contract. There are several factors that influence the supply and demand of mobile phones while looking at the equilibrium price and how it expanded. These changes in mobile phones affected the equilibrium price dramatically and the price continues to be flexible due to the customer’s needs.