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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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  1. Yes!I am THE FIRST one!
    I bet the firms would want other competitors all become bankrupt in their dreams.
    By the way, did anyone seen the “avatar”,
    my mum bought a VCD in a small shop near school.The movie is really fantastic and cool!and it is great to live in CHINA!

  2. YEAH~This really makes some sense,the competition is becoming more and more relentless, the best indicator just came out few days ago:when there was insider who cliamed that APPLE is gonna release its own tablet PC and provided a pretty soild proof with a piece of name pattern certificate named iSlate.Next day, just 24 hours later,HP announced the reelease of its newest tablet PC named SLATE as well!It goes with out saying that they are battling a white war in the cyber world.In order to give apple a really cruel punch, HP even asked the CEO of Microsoft,Steve Ballmer,to demostrate this SLATE PC personally……. BTW:I’m one of those who are waiting for iSlate from apple.

    • Yes, competition become relent less. But it still has some positive side!Competition always benefit Consumers. they got equilibrium price and abundunt production diversity. The competition in the cyber world bring us lots of well-designed and functional products. It even make contribution on push the electronic-engineering to achieve further development. No doubt that The white war bring energy to the cyber world today and let it go further in the future.

  3. That’s right. The electronic industry never lack competition and there will always be something new very soon. So my choise is to take the one down in minutes if you really like it and then leave out all the information about them, cuz that will make you really regret and sad. And that is always happening, no matter what is your choice.

  4. yes, that is right… speaking of the company, we must focus on the theory of firms. in the short run, the aim of the firm owners is to get the MAX. profit, if a firm gets an abnormal profit, the firm maybe is the monopoly. the monopoly is maybe caused by the innovation.that means the firm becom the monopolistically firm. because the innovation can help firms to kick other competiters out of the market. also from the law of demand, the “non-competiter”market makes them has less substitutes, in this way, no matter how price changed, the quantity of demand still large in that market, in other way the new techology make them have higher productivity and MIN.their Total Cost, make their price lower than others, it have other opportunity to be the monoply.

  5. New electric devices with high technologies servve as a life helper to our lives. Apparently , we are getting lazeir and lazeir and dependent on helpful electric devices.
    Competition never stops,electric industry is a very high-speed-developing field, and also yesterday-high tech turns to future-old tech day and night.
    New firms flooding into the market and taking the share of this gold mine..From my perspective, typical firms would not loss too much when the new firms come into the market.
    Like HP , Microsoft , Apple , those are really strong typical firms , and there is few firms can compete with them…

    So, we dont have to worry about the market get saturated, cuz there is no limitation of how big our electric industry will be…
    We just wait and see , and we get better electric stuff to help our lives run better.~~

  6. In the stone age, human beings engraved picture or words onto the cave wall. Today, we just need a computer and type what we want to say. The world has developed greatly during millions of years, which is caused by the advancement of technologies. For one thing, people always desire to create something new to satisfy themselves. Everyone pursues cozy and decent life. For another thing, firms are promoted to innovate new products because the competition will be less fierce. In an extreme case, if a firm has an unique technology, it will earn tons of profits because it’s the only seller in the market which is known as monopoly and it can be a price-maker.
    Anyway, we need those fantastic products to make our lives more colourful.

  7. I have three electronic machines of Sony,they are my computer,mobile phone and digital camera.all of them has been broken,(maybe is my skill problem)but I think there exist some stragies,the company need product goods in the middle- quality,looks very good,but when you get them ,they will be destroy easy.and then the cosumer will expense again and again.meanwhile ,they also product more new style of machine to attract us.make more profits.

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