Economic Analysis of Foldable Smartphones and Consumer Market

ECONOMIC ANALYSIS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1) How the companies will disseminate knowledge regarding different consumer groups the
new product will appeal to?.........................................................................................................1
2) How the companies will determine consumer preferences?...................................................1
The number of consumers expected to purchase the phones.......................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
With the rising technological advancements, a new set of innovation is witnessing in
different field as part of addressing or developing market needs. In this respect, a foldable phone
is a recent innovation in the smartphone market that aims to boost the declining sale of the
sector. However, it has a high price and aims to operate in a niche market only. With this
scenario, the present report focuses on conducting an economic analysis of the foldable
smartphones and consumer market.
1) How will the companies disseminate knowledge regarding different consumer groups the new
product will appeal to?
From the article, it is evident that foldable smartphone comes with a handy price, and
hence it will not attract a large customer base and instead will focus on developing a small
market for the same. However, another reason for keeping this market small deliberately is that
foldable phones don’t prove its increased utility against the other high-end smartphone. Also, it
is relatively expensive that most of the high-end devices available in the market presently
(Strumpf and Germano, 2019). Besides this, as per the theory of consumer behaviour, consumers
will opt for a better and more reliable option than that of foldable devices. Also, this particular
technology is new in the market and hence lacks consumer acceptance. However, it will attract
consumers who are technology freak and aims to buy every new device been launched in the
market. Also, their key purpose is not to use the device for longer but rather aim to test the
durability of foldable phones from different aspect and also aim to compare its performance.
In addition to it, the consumer has a range of choices in terms of smartphones, and hence
the majority of them will opt for another high-end device of Apple, Samsung, or Huawei and not
foldable smartphones. This is so because the foldable device is highly expensive and doesn’t
offer any advanced utility as compared to other devices available in the market. Besides this, the
budget constraint will be of key concern for consumers who are planning to buy this new device
(Thaler and Ganser, 2015). Upon comparing price and features, they will find foldable
smartphones are not very appealing and hence will attract less consumer.
2) How will the companies determine consumer preferences?
As part of assessing consumer preferences, it is required to conduct the market survey by
considering varied factor. A key focus of the survey will be to identify the preferences of
1