MicroEconomics. Supply, Demand, and Market Equilibrium

Supply, Demand, and Market Equilibrium
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Changes in the Smartphone Demand around the World
Consumer goods have peculiar market dynamics due to changing factors that affect demand in the population. Smartphones are gadgets that are almost synonymous with the digital age. Every other person in the population already owns a smartphone, or they are in a race to acquire one. This heightened demand in effect drives the rampant growth of this industry and thus attracts a large number of players in the market. Technology companies are spending millions of dollars in research and development to come up with the most efficient products that will earn them a competitive edge in the market. An article published in the Globe-News Wire by Transparency Market Research (TMR) describes this digital race targeted at winning over the ever-ready consumer.
The article appreciates the fact that the smartphone market is highly fragmented. It recognizes the presence of both giant and startup industry players who are in a corporate rush to achieve market leadership. Regardless of the high number of smartphone vendors in the market, the article recognizes OPPO Ltd, Samsung, Electronics, Microsoft Corporation, and Google Inc. as the market leaders in this industry. Among the strategies that these companies are adapting to overcome competition are acquisition and mergers. However, none of this has succeeded in bringing a solo player in the market. Besides forming strategic alliances, Transparency Market Research also cites product innovation as the most important determinant of market success. Such changes include customer-oriented design development that seems to work well for most technology companies.
According to the article, the demand for smartphones in the market has been rising steadily since 2017, and by 2026, the global smartphone market is expected to make approximately $1,500 billion in total revenue. The most significant current technological advancement in this industry is the Android operating system (TMR, 2019). Android has received overwhelming market reception due to its flexibility and the ability to support a countless number of mobile Apps. In addition to the presence of superior mobile products, the rising standards of living is a boost to the demand for smartphones. The article argues that the need for smartphones is particularly high in the Asia-Pacific Region. This demand is attributable to the consumer’s tendency to explore the variety present in the market and the presence of many smartphone manufacturers in the region.
The Transparency Market Research further reports that the increased dependency on smartphones is responsible for fuelling market growth in this industry. As the peoples’ lifestyles changes, smartphones come in handy for both social and economic life. The report describ...