The smartphone market demonstrates one economic change related to smartphones in the 21st century through technological advances. This market transformation particularly demonstrates how technological innovation affects both supply-side economics and consumer behavior. When we analyze what is one economic change related to smartphones, we see that technological innovations create multiple ripple effects throughout the supply chain. These effects demonstrate how market forces respond to efficiency improvements, as manufacturers can produce more units at lower costs, directly affecting both supply and demand curves. When companies make phones faster and cheaper, it changes how many phones they can make and how many people want to buy them. The lower cost of production will affect the consumer demand for more smartphones at a lower price. In this 21st century, technology has advances that can improve the efficiency of production, and this will cause the supply curve to shift to the right. This trend is clearly illustrated by examining specific market examples.
When the price of smartphones increases, manufacturers face increased pressure to optimize their production costs. Based on my research from Evalueserve, Nokia, one of the most famous smartphones and largest smartphone manufacturers, has fallen its average selling price by about 39% from 2005 to 2009. When the price of smartphones increases, it creates a complex chain reaction in the market. Companies need to make phones cheaper but still make money from sales. So, they keep trying to find new ways to make phones cheaper and better at the same time. So, manufacturers keep trying their best to produce good quality smartphones and lower the cost of production to increase their average selling price as much as possible, creating a positive feedback loop in the market.
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Based on the information, I made the conclusion that consumers can purchase more smartphones at a lower price. A decrease in the supply of cell phones implies several market adjustments: prices tend to rise, consumers may delay purchases, and manufacturers may face increased pressure to optimize production. This shows why new phones can have better features but still cost the same price as old ones. When companies can make more phones easier, they can sell more phones at lower prices. The relationship becomes even more evident when comparing historical pricing patterns: smartphones that cost several thousand dollars a few years ago and nowadays can be purchased at a few hundred dollars, and the storage and the speed of the processor are almost the same as the new phone, which cost a thousand dollars.
A decrease in the supply of cell phones implies a significant market shift. The smartphone market is thus interconnected and economically complex. Obsolescence is, therefore, supposed to be not just a technological phenomenon but also fundamentally an economic principle of market evolution. This means that however small the change in something in the smartphone market may be, it can certainly affect the quantity demanded of either the smartphone or other related products. So, the smartphone market will keep increasing the demand for a new product, and this will cause the older products to become obsolete.
Going back to what one economic change related to smartphones is in terms of supply and prices - nowadays, our technology has become more advanced, creating a market for smartphones whose performance is almost the same as older smartphones. This affects the markets for components, accessories, and digital services. The new smartphone's size is smaller but full screen, the camera is clearer, and most importantly, the price is almost the same compared with the older one. This shows how companies can make better phones without making them more expensive for people to buy.
When the price of smartphones increases, consumers tend to delay upgrades and keep their existing devices longer. As a result, the demand for older smartphones has been reduced because of the new smartphones. In the smartphone market, technology is constantly changing the landscape with new products and eliminating older products. Companies always need to make new and better phones because other companies do the same. When they make what consumers want with new technology, they can sell more phones and keep prices good for buyers. So, manufacturers continue their main mission to let their technology become more advanced; the demand and supply for products are always changing according to the consumers' tastes and economic conditions.
In a nutshell, the elasticity in the economy helps the smartphone market or supplier to understand the needs and tastes of consumers. A decrease in the supply of cell phones changes how many phones companies can sell and what phones people want to buy. They can also make good relationships with consumers by entering into connections or talking with them. In conclusion, since the development of technology is so great today, it is impossible to monopolize a market for quite some time. As a market breaks down from a monopoly into different market structures, The pricing of a product is the key to obtaining bigger market shares and maintaining a competitive advantage in this dynamic marketplace.
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