The expected price war among manufacturers of smart phones and computer tablets can only be good for education in the long term
Market analysts have predicted that, by the end of this year, we will see smart phones being sold at prices as low as Bt2,000. Of course, we are not talking about the "elite" products from Apple or Samsung here, since we can't imagine a new iPhone with a Bt2,000 price tag in December, but a price war is definitely taking place and even the giant players in the field will unavoidably be affected.
The same thing has happened with flat-screen TV sets. Industry leaders can hold on to the preferred prices of their products only for as long as the market says so. And now, the smart-phone market, which arguably can include computer tablets, is telling manufacturers out loud that the time has come for them to rethink prices or face possibly dire consequences.
"Revolutionary" products actually have a quite conventional market cycle. The "first generation" is not so good technologically, but is extremely expensive and thus only affordable for a privileged group. The "second generation" becomes better technologically as the pioneers compete with new challengers for market share - a rivalry that brings prices down, allowing more people to own the product. The "third generation" reaches a greater mass of the market, works even better and is a lot cheaper. Compare the prices of an LED TV today with those of the LCD sets 10 years ago and we see the unchanging trend. Few things stay expensive forever.
Apple and Samsung still dominate the smart-phone and computer-tablet markets, thanks largely to so-called brand loyalty. But what they need to do before making decisions on future prices is to check the "lesser" products available nowadays. In fact, "no-name" products work quite well compared to the pioneers' earlier versions. Ordinary Thais are visiting IT shops in droves to take home these cheaper devices that work relatively well, and big industry players will ignore such customers at their peril.
All of a sudden the government's investment in the free-computer-tablet scheme for poorer children doesn't look like money well spent. Cheap computer tablets are being sold everywhere, and the government will look at the continually improving specifications of the cheaper models and scratch its head at being stuck with a contract for outmoded versions.
To consumers, this is not just about being able to own accessories that were previously unaffordable. Entertainment content aside, smart phones and computer tablets offer an abundance of knowledge at the fingertips. The cheaper the "smart" products get, the smarter the public will get. Possessing "smart" devices means accessing formally unattainable knowledge. And that can only be good for Thai education.
About four years ago it was the coolest thing to be able to "pinch" your phone while others were still using buttons to execute commands. Today, everyone "pinches" their phone - on the bus, at roadside food shops and in mansions and slums. If smart devices can make people smarter, smartness is already spreading.
Many analysts believe that the time will come soon when smart phones are handed out for free, just like the older mobile phones, in exchange for monthly membership fees to the telecom operators. Something close to that is already happening, with telecom operators offering to sell popular brands of smart phones at discount prices if buyers commit to using their services for the long term.
This is the real benefit of the free market. And a free market in its truest, most noble sense is one that prioritises consumers the quickest and best returns. Manufacturers, if they are big and powerful enough, won't like the free market that much. If they could have their way, they would go for a monopoly any day of the week.
Like it or not, the big players will have to go along with the free market, sooner or later. However, a smart phone for Bt2,000 or cheaper, only means that inventors and innovators must now seriously strive to find the "next big thing." It will emerge extremely expensive and imperfect. We all can rest assured, though, that the free market would take care of that.
Latest stories in this category
- Opportunities across continents
- Britain's ambassador to Thailand, HE Mark Kent,..
- Cyberspace breeds mischief
- For the first time, majority of Americans back..
We Recommend
- The secret of 'Pee Mak's' success lies with the worms
- Writer's note: I assume most of you have seen "Pee..
- Romanian expert becomes star at the ICJ
- Cambodia 'altering maps'
Comments conditions
Users are solely responsible for their comments.We reserve the right to remove any comment and revoke posting rights for any reason withou prior notice.
Article source: http://www.thethailandlinks.com/2013/04/20/the-free-market-when-it-acts-as-a-great-leveller/
0 comments:
Post a Comment