VISIONNAVIGATE Says, The mobile phone market is a good example of how to
explain some basic concepts of supply and demand. For
example, it shows how improved technology and increased
supply – can reduce price, even as demand rises.
According to Evalueserve – Nokia, one of the world’s largest
mobile manufacturer, recorded an approximately 39 per cent
fall in its average selling price (ASP) between 2005 and
2009.
BY VISIONNAVIGATE
The good news for users is that over the next five or ten
years, the price of mobile phones is forecast to fall. This is
primarily due to the increased competition and increased
supply from major producers. As markets reach saturation
point, demand will increase at a slower rate. (5% a year
until 2015)
