Mobile phone market is one of the markets in the United States that has been wavering on the balance of forces of demand and supply.In about ten years ago, mobile phone service consumption depended highly on its price,quality of service and network coverage (Dippon 2). With globalization, many firms providing mobile phone services penetrated the US market and forced prices to reduce greatly; demand increased.

Dippon notes that consumers do not only consider the device while selecting a mobile service (10). They consider most the mobile bundle: price, monthly recurring charge, monthly voice minutes, monthly data uploads, and speed of data per kilobyte among others.The recent innovations have further led to rapid fluctuations in the mobile sector in the US. Smart phones’ entry into the market led to decrease in demand of the other phones. With the current rates of growth of consumption, the demand for smartphones will continue to rise (Taylor and Jorg 84).As an effect of globalization, the US market is now saturated with smartphones. IMF (4) predicts that the risks for more electronic exports into the US will be worse than expected. The saturation has led to a decrease in the prices of smartphones. Burrows Robert advises that knowledge in predicting customer changes is important for instituting a supply chain that is market driven in order to avoid saturations in the market.The entry of multinationals into the US’s mobile market has brought price wars as well as variety of mobile services. This has increased demand attracting more supply.

Reference

Dippon, Christian. Consumer Demand for Mobile Phone Service in the US: An Examination beyond the Mobile Phone. San Francisco: Nera Economic consulting.2012. Print.

Taylor and Durrschmidt Jorg. “Globalization, Modernity and Social change”. New York: PALGRAVE MACMILLAN. 2007. Print.

Burrows, Robert. “The Market Driven Supply Chain”. New York. American Management Association. 2012. Print.

International Monetary Fund (IMF). Regional Economic Outlook: Asia and Pacific. Washington DC. International Monetary Fund Publication Services. 2006.