Friday, March 6, 2015

Demand in Action - The Smartphone

Here is an interesting article about what determines what we buy. Would you consider the alternative?

23 comments:

  1. I do find it interesting that as phone pass a certain threshold in price, the overall quality and features of flagship phone increase- but not significantly. A few weeks after getting my new phone, I realized that my use was limited to phone calls, texts, and internet usage- many of the features supported such as front facing speaker quality, gaming interface, and internet speed are not important for me and are features that I would rarely if ever use. The one-plus-one is a phone I have read about as affordable and on par to many phones in the market that are marked at higher prices. While it is an invitation only phone, it has the features that most would require for a smartphone. Smartphones are a product that many buy only if they are new, have more features than another, and sometimes offer what can be viewed as unnecessary. I think the advice presented in the article is the best model to apply when considering a phone, that is, to try to cut costs in features that are unnecessary and buy a phone that serves what you need.
    D.M 8

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  2. Tristen Cara pd 3
    I have a iPhone 5c the cheaper new iphone at the time. I have had an iphone for a few years I got a 4 first and had that for a while before it broke. I probably could have gotten a cheaper phone but I liked the iPhone and it was convenient because I know how to use it and I can keep everything I need and want on it.

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  3. I feel like this article highlights a certain truth about consumers. Many are easily influenced by the glitz and glamour of fancy sounding words. Many “smartphone newbies”, as the article refers to them as, don’t know what they really need in a phone, so they try to buy as much as possible. In the end, however, they end up paying much more for applications they don’t utilize. My mom is an example. She bought the new Samsung 5, and she barely knows how to use it. She and I both agreed that a simple flip phone would be preferred, although those have become antiquated. I agree that iPhones and Galaxies are over rated. However, due to the “cool factor” people feel obliged to get one once their contracts allow them to. Especially in high school, many of us are caught up in this trend and influenced to continue buying these phones for an unnecessary price.

    -TB AP Econ 9

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  4. I am always tempted to have the latest or newest thing on the market. There is a certain novelty knowing that you have the most recent item released in your hands. However, logic trumps this certain feeling of novelty and 'cool factor' when I realize that I do not need the latest item on the market and would be just as well off owning an older, cheaper model. If there was not a big difference between the latest and older model, I would next compare the two items based on price and would definitely consider the alternative if it was significantly cheaper.
    Avital B.

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  5. This article really confirms what many teenagers already know about in my opinion, but choose to ignore anyway. Yeah sure there are cheaper options with smartphones that are able to do almost everything an iPhone or Samsung Galaxy can do, but really for a teenager it all comes down to "cool factor." If everyone has it, you want it, no matter what it is. As for buying older models of the iPhone when newer ones come out, to me the main problem is that newer upgrades are made available only to the newer models. As newer ones are faster, the older ones become sluggish and difficult to work with over time. In my opinion, therefore, it is worth it to upgrade every two years. Also, I have an apple computer and iPad as well, and so having an iPhone allows the 3 to connect seamlessly, which is a huge bonus for me. My websites and contacts and emails and messages can be accessed from all the platforms which is pretty useful. The one thing I do agree with in this article is buying these cheaper alternative iPhones for younger children to help introduce them into the area of technology. I got my first smartphone when I was in the 10th grade, and now I see 6th graders with the newest iPhones everywhere I go. So instead of giving a 6th grader an iPhone 6, I see how it makes sense to give them a cheaper alternative smartphone.

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  6. This goes well with the previous article about America's tendency to spend and not save. Buying smart is a skill that is rare in American culture; it is also a skill possessed by those who go far in life. However, I personally need a high advanced phone -- I cannot live without an Iphone or Samsung. That is a problem.
    -Jim T (Period 8)

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  7. Many of us smartphone users have convinced ourselves that the reason we have one is because it is faster and more capable than our old models. That is true, to an extent. The real reason, which we can never admit out loud, is that we want the latest gadget that no one else has. For that short period of time before everyone goes out to buy one, you have the coolest phone. A few months later you find yourself on the opposite side of the spectrum as you stare enviously at the person who now holds the newest phone. Popular smartphone companies, such as Apple and Samsung, use this cycle to their advantage by creating an emotional tie between the phone and its user. It works as a disadvantage to cheaper smartphone companies such as Motorola who have the technology but the the status. Personally, Apple has its hold on me because I have grown attached to my iPhone and cannot imagine my life without it.
    AB pd. 9

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  8. Jonathan Chen - Period 9

    Smartphones are an integral part of our society, but that's not necessarily a bad thing. They allow for portable communication, entertainment, information retrieval and storage, as well as a wide variety of other functions that improve general quality of life. Thus, I'm typically inclined to support the high demand for this rapidly evolving technology; after all, this demand is what drives companies to innovate faster and further, giving us consumers even more impressive toys to play with as time progresses. However, I do agree with the article in the sense that companies seem to be taking advantage of this demand. The idea that we should be replacing our phones every two years is definitely unreasonable, especially since the newer models don't seem to significantly more functional than their predecessors. I think the problem lies on the consumer side though; most people neglect to research these newer phones and instead purchase them simply out of social obligation. As someone who has used the same iPhone 4 for the past four years, I would definitely recommend people to heed the advice in the article and wait for some significant improvement in technology or drop in price before making a switch.

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  9. I see all these new phones being released every time I go on the internet and I see all these people getting so hyped about the new iphone or the new samsung galaxy phone and I just don't get it. Like the author of the article, I don't see the need to buy the new flagship phones. Although my parents can afford to buy these new expensive phones every time they come out, I always tell them that I don't need a new phone; in fact, my phone is almost 4 years old now. This phenomenon with smartphones also extends to all kinds of electronics including computers, televisions, and gaming systems but I just don't see why. For instance, is the iphone 6 (or whatever the newest version is) really that much better than the iphone 5?

    -Ben Jung AP Econ period 9

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  10. A. Hirani Prd 9

    The alternative is extremely reasonable and puts you at a position where you're not so far behind your counterparts who buy new phones as they come out. I usually keep my phone until it gets old or irritating, which is around every 3 or 4 years. At the end, I can buy a new phone that is only 1 year behind the newest version without looking like an idiot if I want to keep up with mainstream notions to buy iPhones or Galaxy S's. I don't see what the problem is about buying a 5S as opposed to a 6 if I choose to change phones today.

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  11. For the longest time, I only had a prepaid phone, and I only got an iPhone this August, so I can see this from both sides. On the one hand, yes the prepaid phones were fine for covering the basics of what I needed from a phone. It wasn't the coolest thing to have, and there were times when I wasn't able to join group chats because either it wasn't compatible with my phone or it would cost too much. It did make it harder at times, but overall, it wasn't too terrible. But I think it's important to address what people want out of their phone. Yeah, for some, the camera doesn't matter or data doesn't matter or speed doesn't matter, but for some of us, that's not the case. My iPhone means that I don't need both a phone and an iPod. It means that I have data I can use, and it's been helpful in many occasions. I now use my iPhone as my primary camera. I like the interface better than android's, though I do hate all the apps I can't get rid of. I would definitely consider getting a non-Apple phone, but I think I'd still want a phone of equal quality. I did buy my phone on sale and right before the new iPhone was going to come out, so it wasn't as expensive. Now, the international phones I would consider, but most Americans still don't even know about them (I know I don't know about most of them), so it makes it hard to judge/decide if I'd prefer those phones. I think the author of the article makes a good point, but there are also features about the better phones that many people are looking for, and the quality isn't as great, if it's there at all, on some of the cheaper phones. I will definitely think twice before I get my next phone though!

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  12. Robert Lis - pd. 9

    I completely agree with this article, and I think it's pointless to spend so much money on something that is really not worth it. Like the article mentioned, there are so many alternatives of certain products that are out there, and it is not necessary to buy the most expensive one just because it is the latest thing out in the market. These alternatives are very similar in quality and have almost the exact same features as the newest phones in the market. Spending this extra few hundred dollars is pointless because this price does not get you any additional features. I still have an iPhone 4, and it is working just fine for me although it is a bit slower compared to the newer ones. The money that I saved by not buying the iPhone 5 or iPhone 6 really came in handy for when I wanted to go out to the mall. I think that people need to be smart about what they buy, and only buy it if they really deem it necessary to have it.

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  13. It is true that in todays society we buy phones instinctively as soon as the new model comes out not from necessity but habit. We are pressured when everyone has the latest phone to keep up and for no reason we buy a new phone. The market today could hike the prices up for phones about $400 more per update and we would still buy them. In an ideal economic situation we would buy the best functional model of the phone and continue to buy that when our phones break as the prices of old models as mentioned is more than generous. An Iphone 5 goes for about 1 dollar and has been for a while but people still don't buy it. Its a trend that's inexplicable but I am guilty of.

    -KJ PD8

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  14. Sometimes, we let the media and our desire to stand out dictate our purchases. We don't look for what might be the best value or what has all the features that I'm truly looking for, but rather, we buy status symbols and luxury options. Of course if one can afford it, buy whatever you want. But if you're buying an iPhone simply because all your peers are using one, it's foolish. Are you truly going to use it and utilize all the features present in the phone? Or are you just going to use it to text, call, and surf the web? if so, then go for something that's probably half the cost and meets all your needs. Spend the extra money on something you really need or desire. -SG

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  15. Don't the phone companies shut off the upgrades for the older phones? As the companies come out with newer products they turn off the upgrades and the phones become slower and the battery power dies. I read that somewhere. It makes you want to and need to buy another phone.
    This is interesting though. I do use a lot of features on my iphone, but it is not really needed. As long as I have internet and can download apps it is fine. That is what is actually needed, well wanted. Maybe those phones will actually last longer as well.
    I feel like it is so hard to change to the alternative because name brand is the key. But smartphones are so expensive that you should pick the other. It is like colleges. Do I pick the name brand college which is more expensive or the college that is less known? The name brand college might be more beneficial in the long run, but you are getting the same kind of education at both colleges.

    Janvi Pd 9

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  16. I feel like it is so hard to change to the alternative because name brand is the key. But smartphones are so expensive that you should pick the other. It is like colleges. Do I pick the name brand college which is more expensive or the college that is less known? The name brand college might be more beneficial in the long run, but you are getting the same kind of education at both colleges.
    Janvi Pd 9

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  17. Per. 8 R.L.

    Although there are many budget phones available in the market like the Lumia 635 or the Moto G, I honestly don’t think they carry that “cool factor” many other mainstream and popular smartphones have. In my opinion, it’s definitely a better option because you can save tons of money and still have a phone that functions well; however, a majority of the phone users tend to gravitate towards the newest items in stock. I think these budget phones would be beneficial for parents who are buying their kids their first phones or people who are just getting into the smartphone world. In addition, I personally wouldn’t try the alternative ways of getting a new phone because I am not good with bargaining or shopping online without getting ripped off. As much as I want to shop a little smarter, I probably would end up buying the next iPhone.

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  18. Molly Wood’s article “The Best Cheaper Smartphones: Fewer Features, but Not by Much” was definitely fascinating, especially because I am deeply rooted and interested in technology. Furthermore, I thought the article was quite relevant because smartphones have become a necessity in this day and age; they are no longer considered the luxury they once were. As Wood wrote, “It’s tempting to want the latest, the greatest and the top of the line.” This concept relates to the cool factor we discussed previously while learning about the determinants of supply and demand. Personally, it has always been hard for me to “ignore the advertising and shop a little smarter.” For this reason, I usually ended up purchasing “flagship” smartphones in the past. After reading this article, however, I hope to think twice the next time I am eligible for an upgrade because at the end of the day, many of the features my smartphone offers are of no practical use to me.
    - ZA (Period 8)

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  19. In case i have not done this. There is no way that i would look at an alternative to my HTC or Nexus phone. I use them so much and actually need to to develop mobile software and make sure that website i make work on phones. The Kogan Agora 4g is a alternative to use because it has the same processor as a slightly older phone it would work pretty well. Considering i always went the biggest and the best when it comes to technology and i make enough money to support that pretty well, i will continue to go with this type of spending.

    Thomas Famularo

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  20. Phones have never been a huge interest of mine. The fact that they release a new phone every year and still be able to sell has always confused me. Video game consels usally release a new version every couple of years, with drastic differences. Phones have not really change that drastically. Buying a phone that is cheaper, but still funtions seems like something I would do. I don't really use most of my phone. AA PER 9

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  21. I agree with the article that phones are way too expensive. However we all want the best phones out there. My current phone is the iPhone 6. I had the iPhone 5s before. In America, we are one of the biggest market structures so things that we have here are going to be priced differently than the other things around the world. Cheap phones here are really bad but cheap phones internationally aren't. America has the market structure where even the low end income middle class is about to buy the latest iPhone, ps4 or Xbox. Sometimes the cheapest things do have some of the same features but it's just about the brand.

    -N.G. period 9

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  22. Won Park period 9
    I think this was actually pretty funny. They talk about how our world always wants the next big thing even when there are less expensive alternatives. I understand how important it is to be fiscally responsible but it is definetly easier said than done. I know that I will keep on buying the iphone 12 and the Ipad 5

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  23. I thought this was a very interesting article and also very accurate in its perception of our society and culture. Smartphones have increased in popularity so much in the past few years that almost everyone has one now. I remember in grade school when even getting a phone was a huge privilege and the phone everyone wanted was the Droid Motorola Razr, the cool phone that flipped open and made you feel like James Bond in some heroic action movie. Then in middle school the "it phone" was any phone that had a full qwerty keyboard and if it was touchscreen, even better. Now toddlers are learning to use the latest iPhones and androids. Phones have become a necessity and even people as young as grade schoolers are seen toting them around like they were their lifelines. Phones, like computers, have gone through a major evolution in the past decade alone. The classic Zack Morris cell phone looks positively ancient now compared to the newer, sleeker, thinner, lighter, and bigger smartphones out there. I agree with the author of this article: we've meshed our understanding of necessity and desire. New phones come out every year and they're always better than their predecessors even if it's only by a slim margin. However, they're also much more expensive, something we often ignore when we justify to ourselves that we're really paying for "the best" phone out there. I myself am hooked to this craze for having the newest and most-advertised, "best", iPhone and I honestly think that getting out of this cycle will be a challenge. Even so, I think it's an important lesson that our whole generation will have to soon learn when we graduate from college and have to start paying our own bills and making it on our own and it's a lesson I'd rather learn now than later.

    - VL Period 8

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