Monday, June 2, 2014
New Operating System for Smartphones: We Benefit or Not?
Competition is good for consumers because it reduces prices. In the market for smartphone operating system, a new system Tizen has been introduced which is struggling to expand its market share among already established competitors iOS and Android. Samsung for the first time is using Tizen in its Smartphone Z which was launched today. To me, having Tizen in the market, however, would have little effect in our overall welfare. Tizen is nearly perfect substitute over other operating systems (given there is no big discrepancy in features) but people don’t have choice to pick one over others as they are bundled together with the phone you purchase. Given our budget constraint, we cannot optimize our nearly downward-sloping straight line utility curve for Tizen vs. other operating systems because we cannot buy the products separately and use them in our own device. Having said that, we can increase our welfare because of lower prices that may result for smartphones due to higher competition in operating system market, even though we wouldn’t be able to maximize our utility level as much due to the nature of the utility function itself and rigidity in choices.
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I don't like new system for smartphone.
ReplyDeleteIphone-IOS7 system, it looks cool, but I must charge my iphone twice a day.
smartphone tend to cheaper, because of the high competitive market
ReplyDeleteI'm agree with your opinion.
ReplyDeletei think competition is also good for the market , because of the competition, firms should keep innovate , and the market is great-hearted
ReplyDeleteIn the freedom market, most people prefer to a good smartphone which is best fit for them. Especially in the developed countries. people will try the new technology.
ReplyDeleteI agree with"Competition is good for consumers because it reduces prices",We can use less money to buy better goods.
ReplyDeleteWANG GUANQUN
I agree we have benefit to new operating system for smartphones. We also have more choices. Competition in these smart phones just gave us the advantage of consumers. Also have the benefit for the price.
ReplyDeleteBao Jie
When considering which phone to purchase consumers will often consider which operating system the phone is bundled with. As technology advances our expectations of these operating systems also advances. Having multiple operating systems drives competitors to develop their products. If there was only one operating system consumers would be forced to be price takers and technology would take much longer to advance.
ReplyDeleteWhen deciding what phones to buy I believe that most people will try to optimize their own utility and choose the phone that gives them what they need for what they use the phone for. This new operating system for Samsung cell phones comes in and might have features that will attract some people, but it does not seem differentiated enough to really impact on the overall demand for cell phones. If it gives people more options and creates a competitive market that will be better for everybody.
ReplyDeleteI agree with"Competition is good for consumers because it reduces prices,and we have benefit to new operating system for smartphones.If it gives people more options and creates a competitive market that would be advantage of consumers.
ReplyDeletePerformance for mobile phone is really important, but for most consumers, the most important point is still the price.
ReplyDeleteCompetition in the market is always giving the consumer the most benefits, it's actually giving the consumer many option of buying the new products. So I agree with Competition is good for consumers because it reduces prices.
ReplyDeleteHaving more operating systems in the market will benefit us in many ways. The competition between companies will raise giving us more choices and low prices.
ReplyDelete