The Introduction of the iPhone 6s Plus
The introduction of the iPhone 6s plus was done in September of 2015 by Apple's CEO Jim Cook, the opening of the smartphone, just like its predecessors, were met with excitement from the Apple product customers. It is clear that the consumers of cellular products are always on the lookout for the next update (Yoo-chul, 2014).
The Market Structure of the iPhone 6s Plus
The smartphone market industry is and has been an oligopoly. The oligopoly is explained by the number of sellers of the product. The iPhone 6s plus is aligned with the oligopoly type of market structure. It held a considerable percentage of the market during its release. The iPhone 6s plus market structure is characterized by the small number of sellers of products of its kind (Keeve, 2013). The small amount of sellers is caused by market barriers due to existing patents, and the raw material and market control.
Competition with Samsung
Apple insists that during the manufacturing of the iPhone 6s plus, the costs of raw materials, development, distribution, and production are considered during the setting of the price. However, this has been refuted as it is highly suggested that the product is overpriced. The primary competitor to Apple is Samsung. The Samsung Galaxy S6 Edge plus is the most prominent competitor and rival to the iPhone 6s Plus. The rivalry exists due to the performance and similarities the two gadgets offer. The two companies have their loyal customers. Samsung holds a considerable share of the cellular market (Keeve, 2013). This competition has even led to court battles on patent issues. Samsung has been accused of using price discrimination on their customers. It was noted that the prices for the same product were different in the United States compared to the prices in Korea (Yoo-chul, 2014).
The Application of Game Theory
The game theory is highly applicable to the cellular industry. Mobile technology has been rapidly developing with the entry and exit of companies. The prisoner's dilemma is seen in the Apple-Samsung rivalry. Legal troubles have existed between the two and each having to calculate whether to sue the other or not, depending on the costs incurred.
References
Keeve, W., W. (2013). A view on the smartphone market - An Oligopoly. ECONS 101. Retrieved from: http://economicsmalaysia.blogspot.co.ke/2013/06/a-view-on-smartphone-market-oligopoly.html
Yoo-Chul, K. (2014). Samsung denies 'unfair' handset prices. Biz " Tech.The Korea Times. Retrieved from: http://www.koreatimes.co.kr/www/news/tech/2014/10/133_166212.html
