Economics of Apple and the new Pixel Phone
Written by: Brianna Cieslak
Now that Christmas is just right around the corner, sales are being increase for all Apple products. IPhones, tablets and other kind of computer accessories, are flying off the shelves at all stores. With the holiday season comes a great increase in all product activity. The demand for all of Apple products increase due to Black Friday having a slight sale which increases all sales. This makes customers want to go out and spend their Thanksgiving day buying all of Apple's products for a cheaper price. The chart below has all of Apple’s IPhone sales from 2007-2015. As you can tell, each year the number for IPhones increases. It’s extremely astonishing because Apple is in a Monopolistic Competitive Market which means their competition is extremely high.
Even though the demand may increase, if Apple didn't prepare for their sale their supply may be low and all of their customers may not get the products that they want. This leads to substitution of any other kind of cell phone like the IPhone. Google has now released a new Pixel Phone which will make customers want to substitute their already owned IPhone with the new Google phone. Even though the Apple IPhone already has a high rated camera, the new Pixel Phone by Google is rated the highest smartphone camera ever. And when people run out of storage with their ICloud service on all Apple devices, Google is now offering unlimited storage for all photos and videos. This gives Apple’s customers the incentive to switch to using the Pixel Phone because of the new features that it offers. Even though Apple already has competition with the Samsung Galaxies, it now adds an even greater competitor with the new Pixel Phone by Google. With all the new features that the Pixel Phone is offering, will you switch to using a Google phone?
Attached to this blog post is a video about the new Pixel Google Phone if you’d like to learn more. https://youtu.be/Rykmwn0SMWU
Works Cited:
@lukedormehl. "The astonishing rise of iPhone sales in one amazing chart." Cult of Mac. N.p., 2015. Web. 21 Dec. 2016.
Google. YouTube. YouTube, 2016. Web. 21 Dec. 2016.
"How Google Pixel will impact Apple's iPhone ecosystem." The Economic Times. N.p., n.d. Web. 21 Dec. 2016.
It makes sense that sales spike during the holiday seasons as do the sales of mostly every product. On the topic of the google phone, I believe that the Iphone will still dominate the market. Apple has such a large brand recognition and a huge consumer base that will stay loyal to the product.
ReplyDeleteWith no evidence to back myself up, I feel that most iPhone users bought that particular phone due to the brand recognition and the pervasiveness of the device. It is already well known that most android phones offer a plurality of features that the iPhones do not. Therefore, it would seem that most Apple consumers are attracted to the brand not because of the features, but because of something totally different. It is not the Apple market that the Google phone would dig into, it is the Android market.
ReplyDeleteEven though there are many competitors of Apple, it still is not surprising that the demand for Apple products continues to increase. Personally, I just think there’s something about iPhones that isn’t like any other phones. It’s easy to argue that other options such as the Pixel Phone by Google have better qualities, however I would still choose Apple, and it’s clear that many people do the same. Although the increase in Apple demand is not a surprise, it will be interesting to see if there ever comes a time where the demand starts to decrease.
ReplyDeleteAlthough Google and Apple are competitors to some degree in the smartphone market, I don't think there is a large enough overlap in their target consumers to incentivize the majority of iPhone users to switch. The main draw towards the Pixel by far is it's access to the latest and most pure versions of Android straight from Google, just like the Nexus phones before the Pixel. Whereas for the iPhone, the main draw is iOS. Given that these mobile operating systems are so different require vastly different preferences, and the competition between them has existed for a long time now, I do not think the introduction of the Pixel will greatly impact the sales of the iPhone.
ReplyDeleteEven though google and apple are competitors, it seems that Apple will always reign supreme in the smartphone market. It just seems like it's the social norm to have an iPhone and if you don't have one you are almost looked down upon. There are many features of android phones that are far superior over Iphones, their usability is like that of a computer where as Iphones are very restrictive. This being said more people still prefer iPhone just because of the name, and I don't see this changing in the foreseeable future.
ReplyDeleteOne of the major disadvantages for Google is their lack of brand name recognition in the cell phone industry. Everyone knows of Google as the search engine, but not many people know of it in the cell phone industry. Comparing Google to a company like Apple who has been producing smartphones for ten years now is difficult due to how popular Apple is in this industry. Plus, Apple has shown they can always innovate and develop new technology which increases the demand for their products. These constant updates and changes only helps Apple as they will constantly be increasing the demand for their products and leaving Google in the dust.
ReplyDeleteI think it’s pretty insane how many new phones are constantly coming out. As soon as I saw the Pixel phone by Google come out, I knew it was an all out war between companies to gain the most popularity for phones. So what, is Chrome or Firefox going to start making tablets or phones too? But for Google, they have a horrible disadvantage because they are essentially going up against a company that has been selling phones and tablets for over 40 years and Google has only made one phone that was just made a couple of months ago. Unless Google can truly impress their audience with this new phone, then I don’t think Google stands a chance against Apple and Samsung (especially since Apple and Samsung have been rivals for years). And since Apple phones have been around longer, customers trust the product and its reliability, thus sparking the exponential increase in demand and drop in prices. In the end, Google is going to have to step up their game and create a reliable phone like Apple’s if they want to make it in the phone industry.
ReplyDeleteIt's interesting how after all this time, Apple is still able to keep up with the ever increasing demand for their products. The need for consumers to have the latest, coolest technologies creates an extreme need for a high supply so that the stores that sell these products can keep up with the demand. I think that even though the new Google phone has some key features that Apple lacks, iPhones will still remain the most popular because people tend to stick to familiarity. Venturing into a new product is hard to do since there isn't as many reviews, and we are all so used to the components that come with Apple technology. Therefore to compete with this new product I'm sure Apple will come out with something new and extravagant in order to keep consumers buying their products.
ReplyDeleteOverall this was a really good piece and an interesting topic relating to economics. Even though it seems as if the Google phone will trump all phones based on its features, I feel like Apple will always have the upper hand. Everyone wants to have an apple product, and everyone knows apple as a phone product, whereas they see google as a search engine.
ReplyDeleteI found this really interesting to read because seeing there is competition, I feel overall the iPhone will always be more popular. The fact that there may be better pixels on the google phone, something about the iPhone stands out. I think it's the set up and how it's super organized and easy to handle; and other phones in my opinion, just don't have that same kind of pretty look/quality.
ReplyDeleteWhen the new Google phone was announced I thought it was weird that Google has created a phone. And now since they are going up against Apple and Samsung they are going to have a disadvantage. More people might not buy that phone since they don’t know much about it or because there are more familiar phones. But people might buy that phone just because of the brand. I don’t know if I personally would buy the phone until it’s be out for a while, to see if people actually like the phone or not.
ReplyDeleteI think that there is already high competition in the phone industry just between Samsung and Apple. Now with the new addition of the Google Pixel Phone it will cause even more competition between all three firms. I think some people will start to switch to the Pixel Phone to test out and see if the Pixel Phone is really better than the IPhone. However, personally I don't think the new addition to the industry will cause a huge switch of users.
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