1. What type of market is the smartphone industry?

The smartphone industry is an oligopol market, since it is dominated by several large players (Apple, Samsung, Xiaomi, Google, etc.), which compete with each other, but have a significant impact on the market.

2. Why the smartphone industry is oligopolis

• A small number of large competitors

There is a limited number of leading companies on the market (Apple, Samsung, Xiaomi, Oppo, Google).

The entrance to this market for new companies is difficult due to the high cost of development, marketing and production.

• High barriers for entering

The production of smartphones requires significant investments in research, technology and production.

• Interdependence of firms

The actions of one manufacturer (for example, the release of the new iPhone) often make competitors react (Samsung produces a similar flagship).

Companies closely monitor each other's strategies and adapt their decisions.

• Price inflexibility and competition through differentiation

Companies rarely reduce prices, as this can lead to a price war. Instead, they compete due to innovation, design, ecosystems and brand.

• Limited price control

Although companies can set prices, demand and competition limit their capabilities.

Prices for new models are often similar due to competition (for example, the iPhone and Samsung Galaxy have close price ranges).

1. Perfect competition

• A large number of sellers and buyers.

• homogeneous (identical) goods.

• Free entrance and exit from the market.

2. Monopoly

• One seller controls the market.

• High barriers for the entrance.

• setting prices without competition.

3. Monopolistic competition

• A large number of firms.

• Differentiation of products (branding, unique features).

1. The smartphone industry-oligopoly due to a small number of leading companies, high barriers of the entrance and interdependence of manufacturers.

2. Unlike perfect competition, this market has high differentiation of products and limited price competition.

3 Unlike a monopoly, there are several strong competitors, but they have significant influence.

4. Monopolistic competition is not suitable here, since there are too high barriers to the entrance barriers in the smartphone industry.