Disadvantages Of Cheap Smartphones

1327 Words6 Pages
Former Microsoft CEO and current owner of the Los Angeles Clippers, Steve Ballmer, once said that “There’s no chance that the iPhone is going to get any significant market share. No chance. It’s a $500 subsidized item”. When people look back at that quote, they laugh at the irony of Steve Ballmer’s statement. Yet, perhaps it may slowly come true. Cheap smartphones, nowadays, aren’t the poorly-made monstrosities that they once were. With the rising quality of affordable smartphones, more and more people are now interested in price rather than brand prestige. Phone brands such as the OnePlus, Xiaomi, Huawei, Moto G, et cetera are now taking the smartphone market by storm. With the rise of interest in cheap smartphones not only in the Philippines but in developed countries as well, such as the United States, there is new array of affordable smartphones vying for a share in the phone market, which has since been dominated by Apple and Samsung. With this unpredictable market, how do manufacturers adapt to how much they would have to actually supply to the demand of the masses. There has to be a middle ground to avoid losing profit but maintain a foothold on the market, right? To explain this trend and its implications on the market we have to focus on the middle ground. Previously, the focus was striking the right balance using the economic idea of opportunity costs. However, what is the right balance? How would we actually convey or illustrate such concept? It’s actually pretty
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