As Verizon introduced Iphone in the beginning of February, AT&T is seeking to attract new customers with the latest Motorola Atrix 4G Smartphones.
To counter the increasing profits of Verizon’s new Iphone, “AT&T is cozying up to Motorola Mobility Holdings Inc.” said Shayndi Raice, a Wall Street Journalist. The new Motorola Atrix 4G will be the new dominating strategy to draw the public’s attention. By introducing this new Motorola Atrix phone, AT&T is providing a variety of phone choice. Because technology is advancing everyday, a wireless smartphone is very much a necessity. In other words, AT&T is seeking for more opportunities in maximizing their abnormal profits in the long-run by offering different kinds of smartphones to meet the new customers’ needs and preferences.
The competition between Verizon Wireless and AT&T has continuously benefited us in various ways. One of the evidence we see in this article is that both companies are introducing new phones to maximize their customers’ satisfaction. The competition also has increased a better customer service.
The competition among Verizon Wireless and AT&T has significant impacts on Motorola and Apple as well. As customers demand more smartphones, they are interested in supplying more mobile phone products in a cheaper price. This can in fact be applied to the law of demand and we are able to see how these leading companies are capable of generating their revenues.
Moreover, as both Verizon and AT&T introduce their new phones, other mobile devices will become cheaper attracting customers from the middle class. The new contract deals are targeting different class of people where people who are affluent may be able to demand new products in the first time while people who are less affluent may need to wait until the prices of these phones decrease.
Overall, it is clear that the pre-order of Iphone in Verizon Wireless is increasing quickly, allowing Apple to supply a larger number of Iphone; on the other hand, Motorola will be able to increase their Atrix 4G phone supply as AT&T customers increase their demand.
Miki Ishibashi
2 comments:
I agree with all your points stated within. I think it is good to have competition with the cellular companies because overtime the prices on the phone will decrease allowing people will less affluent to purchase a cell phone. The pre-order for the Verizon Iphone proves the clear demand for apple products. Apple has successfully marketed the iphone around the world, making people want to buy their products. Since the iphone was harder to purchase when it first came out with having the exclusivity to AT&T, now Verizon customers are unbelievably excited that they can purchase this product that previously was unavailable to them. I wonder if this new Atrix 4G will be able to compete with the iphone.
Nice collaboration between teammates. I am impressed that one focused on of you focused on how the iPhone with affect Verizon and how you Miki focused on what AT&T is going to do to stay relevant and to maintain their revenues. I think that this is something that you all should stay on top of and is something that might need to be included when making an investment recommendation.
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