The article suggests three reasons why people decide to use iPhone over other smartphones. The first reason is that the iPhone is an Apple product, and people all around the world have confidence that their investment will not be “defaulted” since Apple is a globally established corporation. The second point is that iPhone applications (Apps) are more appealing than Apps from other phones. Last, the article proposes that the “Status Symbol” is a major reason that people choose iPhone over others. It means that since iPhone is already well established and loved by its users, the device has become a symbol of a smartphone.
Adding on to the article, I believe one of the main reasons why people choose iPhone over other smartphones is due to the information cascade phenomenon. Besides, many other phones have similar or better functionalities as iPhone. For instance, Galaxy S II, which was released six months ago, has the same hardware as the newly released iPhone 4S, and even a better camera hardware. However, people in the U.S. hold more iPhones than Galaxy phone because of information cascade. When the first few people who bought iPhone showed a positive payoff, following potential buyers of smartphones had a biased precept of iPhone, causing them to lean towards buying iPhone over others without objective comparisons. Moreover, even if people receive high signals for alternative products, they tend to buy iPhones. They infer from others’ choices of buying iPhone and simply follow their choices regardless of their own gathered information. Thus do to this information cascade, iPhone has become the bestselling smartphone despite the fact that it cannot be objectively categorized as the “best” smartphone.