A1 Refereed original research article in a scientific journal
Price and Sales Volume Patterns of Mobile Handsets and Technologies
Authors: Antti Riikonen, Timo Smura, Juuso Töyli
Publisher: IGI Global
Publication year: 2015
Journal: International Journal of Business Data Communications and Networking
Journal name in source: INTERNATIONAL JOURNAL OF BUSINESS DATA COMMUNICATIONS AND NETWORKING
Journal acronym: INT J BUS DATA COMMU
Volume: 11
Issue: 2
First page : 22
Last page: 39
Number of pages: 18
ISSN: 1548-0631
DOI: https://doi.org/10.4018/IJBDCN.2015070102(external)
Abstract
This article provides empirical evidence on the price and unit sales volume patterns of mobile handsets and mobile technologies, using data on the Finnish market. The prices and sales are studied on product category, product model, and product feature levels. The results show how the dynamic of prices and sales changed after the proliferation of smartphones. Otherwise, the dynamics seem to be relatively systematic supporting the use of simple assumptions in practical estimations. The median price of handset models decreases linearly, from 89% of the introduction price at peak sales in the fifth sales month to 47% in in two years. For mobile handset features, a decreasing price pattern was also identified. After a 10% market share is reached, the decrease is on average 30 Euros per 10% market share change. The prices at feature takeoff were identified to be on average at 58% of introduction price.
This article provides empirical evidence on the price and unit sales volume patterns of mobile handsets and mobile technologies, using data on the Finnish market. The prices and sales are studied on product category, product model, and product feature levels. The results show how the dynamic of prices and sales changed after the proliferation of smartphones. Otherwise, the dynamics seem to be relatively systematic supporting the use of simple assumptions in practical estimations. The median price of handset models decreases linearly, from 89% of the introduction price at peak sales in the fifth sales month to 47% in in two years. For mobile handset features, a decreasing price pattern was also identified. After a 10% market share is reached, the decrease is on average 30 Euros per 10% market share change. The prices at feature takeoff were identified to be on average at 58% of introduction price.
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