Smartphone market structure

Market structure: 

Monopolistic Competition

Market characteristics of smartphone:

1. Concentration in the market:
Smartphone market is highly concentrated, mainly controlled by Apple, Samsung, Huawei.

2. Product differentiation:
a.Technology differentiation: The difference of the operation system between Apple and others
b. Quality differentiation: Camera quality and display resolution such as Retina
c. Price differentiation: iPhone is more expensive than other smartphones in the market
d. Customer service differentiation: Apple Shop and Genuis Bar

3. Barriers to entry:
High quality equipment, knowledgable and experience personnel and programming resources

4. Cost structure:
a. Fixed cost : Store rental, the maintenance of the plants , salary
b. Variable cost: Innovation and programme, promotion


5. Vertical Integration:
a. Forward Integration: Phone accessories including earphones, phone cases and iCloud and Apple Music, and App Store


Chan Nga Yan, Hazel 1155081733
Liu Tung Mei, Cynthia 1006601593
Poon Lok Yi Joyce 1155082158