“AT&T to Push Atrix 4G to Counter Verizon iPhone”

Blog Assignment 3: Economics of the Industry

http://online.wsj.com/article/SB10001424052748704376104576122052452789160.html?mod=WSJ_Tech_LEFTTopNews

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

Blog Assignment 1

Slowdown in the number of 3G Users, Increasing Verizon Profits

http://online.wsj.com/article/SB10001424052748704698004576103673251177518.html?mod=WSJ_Tech_LEFTTopNews

The latest news on the Wall Street Journal today was on one of the biggest phone carrier company, Verizon, Inc. Statistics shown by the Wall Street has indicated a decrease in the company’s total annual revenue. One of the reasons is due to the competition with AT&T, the other largest phone carrier companies in the country. Since it is such a craze now to use Apple products now that most of the customers are attracted to Iphone contracts provided by AT&T. Thus, leading to a decrease in the number of customers in signing smart phone contracts with Verizon, Inc. Because Internet is such a daily necessity for most of the people now, 3G phones and smartphones are the best choices for students, businessmen and women in the society.

True, if the competition between the nation’s largest phone carrier companies, we will benefit from the new policies and products they provide. Although America is still experiencing deflation, new products still seem attractive more to us. I think in this globalized world, if these two companies expand their markets to developing countries and contribute their efforts in making a better connected world, we will have more opportunities in understanding other cultures and customs and hence will have less ethical issues.

Miki