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EXPENDITURE ON MOBILE PHONES - Essay Example

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Changing technology has driven and influenced customer tastes and preferences. This has also led to different pricing strategies of mobile phones which have affected the demand. The growth rate…
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EXPENDITURE ON MOBILE PHONES
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Download file to see previous pages rates and tariff. The behavioural pattern is more obvious in groups of consumers than in individual consumers.
The mobile phone market is expected to grow by 2% in retail volume compared to its review period which witnessed a 40% growth in the earlier period. Owing to the already high penetration rate of mobile phones in the household sector which accounts for 261% in 2013, the future CAGR of the mobile phone market is expected to remain low. Australia experienced a high penetration rate in mobile phone usage. The household penetration of mobile phones grew owing to the rise of smart phones. Consumers in Australia had the tendency to retain the old phones for spare use. This also led to the high penetration rate of mobile phone usage. This trend was observed more in case of simple mobile phones, but in case of smart phones the scenario was different. Smart phones were evolving at a high rate and consumers were less inclined to retain it for spare use as it failed to match the superior performance and feature of the new smart phones. This led to the drop in the penetration rate of smart phone in the Australian market. The penetration rate dropped from 86% in 2010 to 33% in 2013. Samsung retained its leader position in the smart phone market in Australia with more than 32% retail market share. 1
The smart phone market in US has shown significant growth owing to the existence of low value contracts of older models of smart phones. The total shipping value in units for smart phones accounted for 134 million units in 2014. It witnessed an annual growth rate of 9% in the smart phone market in 2013 and an absolute growth rate of 37% from 2008 to 2013. The smart phone industry in US has observed the shift more in case of low priced phones than high value phones. The key focus was on volume and not on value. This was mainly observed when retailers in US offered smart phones for a contract of less than $200 for two years. The older version of the ...Download file to see next pagesRead More
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