Sunday, April 3, 2011

Apple Making Verizon- Ready Iphone by Year End.


Releasing the Iphone 4 to Verizon was a competition for AT&T. Although AT&T was the first company to sell the Iphone, Verizon has picked up the product and is now using a different wireless technology. By Verizon using different technology than AT&T this has caused a great competition between the two companies. Since AT&T has gotten rid of there unlimited internet data plan, Verizon decided to step up its game by making there’s unlimited. This new competition is going to be a competition of which company can get closest to equilibrium and please the customers more. Apart from the competition, the demand for Iphones is only going to increase.  More and more customers are going to want to purchase this device, because each new model is going to be higher tech than the one before. This healthy competition between the two phone companies will greatly increase consumer’s choices. Each company is going to try and make the consumers happier, by changing there plans and prices. Although the prices won’t change, consumers will have the option to pay more for the newer version or pay less for last years phone. It is unclear which company will do better in the long run, but the demand for Iphones won’t change unless a completely new phone is created.

-Meggan S.


3 comments:

  1. This comment has been removed by the author.

    ReplyDelete
  2. very good point on the health of the competition. the free market today allows consumers to choose which carrier they wish have and which one they personally think has the better service. ATT has had a monopoly on the iphone in the recent years. with nobody else having the iphone, many people switched to att. with verizon picking up the iphone, it brings much competition to the market. att has now purchased t-mobile, and that would have even greatly increased the chance of AT&T having a monopoly. Verizon has been known to have much better roaming service while in the mountainous areas that att has. With the introduction of the iphone to verizon, many will have the option to have an iphone that never had the ability to before. Those who live in the mountains, and in the north-west area are limited to verizon if they want a major carrier as their provider. The importance of competition between firms is important to this switch. I do want to add to your post however, that the demand for iphones would potentially rather increase because of the increased ability for more people to have them. also, the prices for both companies may drop and benefit the customer because of the competition. The profit margain for ATT may also decrease because of the loss of customers or price for their service which is no longer exclusive.

    ReplyDelete
  3. I don’t agree that the companies "may drop". These are two major companies and they are not going to drop their prices because someone else is competing with them. They are both successful enough with all of their other products that they do not need to drop any of the prices. Customers know what they want, and know how much it cost for the Iphone. They can choose what plan they want and which service but apart from that, each company is going to be making a profit at the set price.

    ReplyDelete