Earticle

초록

영어

Cell phones continue to evolve and advance in technology as consumers pursue more technologically advanced features of handset. Currently, there are numerous devices available for
customers spurring rapid adoption of smart-phones. In fact carriers have been heavily promoting the latest advanced handsets that have encouraged rapid growth in the smart-phone market as more and more international manufacturers have joined the battle to scramble for profits. Smartphone manufacturers cannot be relieved, even they have high growth rate surpassing that of the overall smart-phone market, as its major rivals are catching up rapidly. The average purchase price of handsets has dropped over the past years since competition in phone
market is intensifying which influenced an increase in the number of smart-phone brands available to customers. There is room for debate as smart-phone price cuts are apparently good for customers; it may be problematic for smart-phone manufacturers. In the short term, price reduction is effective in boosting sales for manufacturers and attracting subscribers for carriers but in the long term, these approaches undermine the price potential of future handsets and
lower their profit margins. We see an interesting trend in smart-phone sales market where it has been spurring huge price reductions while having fast advancing feature sets and presumably high development costs. If this is really the case, smart-phone carriers soon reach the point where the handset is a major cost consideration for both manufacturers and carriers bringing need to change the pricing strategies completely in the near future. In this paper, we wish to analyze the impacts and causes of price war and suggest avoidance of price war so that carriers can improve their profitability.

목차

Abstract:
 Introduction
 Competition in mobile phone market
 Research Questions
 Research methodology
 References

저자

• Solongo Purevjav [ Department of Business Administration, Korea Aerospace University ]
• Jin Ki Kim [ Department of Business Administration, Korea Aerospace University ]

참고문헌