The Mobile Phone Industry in the Uk

In: Business and Management

Submitted By tsimms
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The Mobile Phone Industry
The market for mobile phones is enormous, with media regulator Ofcom reporting in Q1 of 2012 that 92% of the adult population in the UK own at least one mobile phone – this figure could have risen further as we are now in Q1 of 2013. What's more, four out of five children are expected to own a mobile phone by the age of 11 years old. With many people calling this the digital age, it is difficult for people now not to own a mobile phone. The mobile phone industry also poses a massive threat to other industries. An example of this is that most mobile phones now come complete with an inbuilt camera. Is the massive mobile phone industry the main reason behind the well-publicized collapse of camera firm Jessops earlier this year?

(Fig A)
See in figure A that demand for mobile phones shifts from D1 to D2, thus more are supplied.
The mobile phone industry consists of two main sectors: manufacturers and network operators.
Manufacturers:
The demand for mobile phones is ever growing; in 2011 there were approximately 81.6 million active mobile phone contracts in the UK. Because of this, we see the ‘mobile phone’ evolve each and every year. It’s not surprising that we are still seeing massive changes today. From 1998 until 2012, Nokia was the biggest mobile phone manufacturer worldwide. Today, a ‘Nokia Brick’ is not accepted by society and as a result Nokia has suffered declining market share due to the likes of Apple’s iPhone and Samsung’s Galaxy line. This has meant that Nokia have (some would say unsuccessfully) had to change their product offering with the launch of the Lumia smartphones. In October 2012, Nokia announced a net loss of around £787 million over three months. This could have been due to Nokia having to invest in new devices as Windows Phone 8 (an upgrade to the operating system that Nokia Lumia phones use) was due to be…...

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