This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
11/12/2007
The iPhone Invades Europe
The iPhone is finally being released in Europe. There is a bit of scepticism about whether or not it will be as successful in the European market as it has been in the American market. Currently in Europe most phones are sold at a subsidized cost. The Europeans also have a higher expectancy for the data speeds and camera technologies in their cellular phones. However, the iPhone is going to make an attempt in the European market, even with its lower capabilities and much higher price. The hope is that the new touch screen and easy navigation will catch the attention of the people in Europe. The demand in the United States has been very high for the phone, despite the fact that many users have had to terminate their current carrier to sign up with AT&T. It will be interesting to see if the Europeans have the same draw to the iPhone as the Americans.
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3 comments:
I'm sorry but this is pretty obvious. If they are aiming for a 1% share of 1.1 billion people, that is 11 million sales. They have only sold 1.4 million in the US so far, and the article says that there is less competition in Europe.
It is interesting to me that even though the iPhone has report after report of poor quality, performance, etc. that people are still willing to spend a week’s paycheck to be the owner of one of these over hyped phones. I do not care if you live in Europe or the United States, a crappy phone is a crappy phone. Sad enough though, I do think that Apple will be able to capture a great deal of the market in Europe with the iPhone. Personally, I think they should spend more time improving the original before trying to sell it in different markets.
Hailey - is expectancy a word?
Logan - I'm not sure what you're point is.
Sophie - this is a no brainer. Sell in a new market - profits probably go up. Improve features - costs probably go up.
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