1/02/2012

Ratchet Effect on smartphone market

The ratchet effect, tendency of people to be influenced by the previous highest (or best) level of a factor. People who has experienced LTE, 5 inch class smartphones denies to return to the 3G, smaller LCD.



Many users of Galaxy Note in Korea say that since they experienced 5.3 inch large display on their smartphone, the smaller LCD of others make people to feel ill at ease. 

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In addition, once people purchase LTE smartphone, it affects to neighbors to have LTE. We could suppose easily that mostly smartphone usage concentrates in web browsing and multimedia consuming which depend on network speed deeply. Actually iPhone4S in Korea is struggling against LTE and larger display and finally Korean carriers drop the price to blow away their iPhone4S stock unprecedentedly. This market situation might be influenced by Korean leading makers against mighty Apple and just in time iPhone4S of Apple gave a time slot to be attacked. That's why we are looking forward how next iPhone5 comes to us.

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