Today the business news is full of stories about new techie products coming out on the market. Google introduced a new phone Tuesday, Sony is coming out with some new laptops, ATT is offering five new smartphones, and cars are starting to be built with computers and monitors in the dashboard. And–oh yeah–several companies are coming out with 3-D televisions.
I read a couple of these stories and began thinking it was all a bit much, the market is saturated and little of this really represents a new technology for consumers.
Then I remembered I am an economist as well as a pessimist, and I realized how great all of this is. Saturated market? It is called competition. Little new technology? More competition. What to expect?
You know the model. New firms enter the market, typical firm’s market share decreases, prices go down, and profits decrease. As potential customers, you and I know the part we like best.
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