Iphone 5, Y U So Problematic?
According to a blog written by Edward C. Baig on USA Today, there have been numerous complaints of iphone 5. These complaints include inconvenience of the new map system, short battery life, slower wi-fi after ios 6 update, purple haze on pictures and etc. Not only there have been negative reviews of iphone 5 but also parodies have been created criticizing iphones. In one of the pictures that has been going around in popular network sites such as Facebook, iphone 20 is shown as a lightsaber from the movie, Star Wars, which is to emphasize the idea that iphone 5 has only lengthen the size from its previous iphones without any practical advantage.
Despite these negative reviews and complaints of iphone 5, why don’t customers choose other phones such as Samsung galaxy s3, which has also been very popular since its release in May 2012. Apple’s revenue from iphone rose 56% with the release of iphone 5, which was 58% more than last year’s revenue. How is this possible with all the critiques iphone 5 receives?
Do people simply follow the crowd even though they see these negative reviews? Or have they seen positive reviews and decided that these positive reviews are good enough to persuade them to buy iphone 5?
If we assume that people chose to buy iphone 5 because they were following other people who were buying iphone 5, there will be 2 categories, as discussed in class: 1. People assume that the crowd may know something they don’t and that their decision to buy iphone 5 might indicate that iphone 5 is worth choosing over other phones.2. There is a direct benefit effect, in which people just simply want to be a part of a crowd, which has a value in itself.
There may have been a cascade, which led to many people making the same decision of buying iphone 5. Although these kinds of cascade effect can be seen easily, it is not necessarily right as it can be based on very little genuine info and not a perfectly rational decision. This also relates to the fact that the social network you are in affect you decision. If majority of your friends are buying iphone 5, there is a better probability that you will also buy iphone 5 even though you read a negative review of it. Seeing what earlier people did, you would probably do the same as the previous people, which is a similar situation like drawing marble and guessing what the majority color is. No matter what you see, guessing what the majority of the people decided would be the best.
http://www.nytimes.com/2012/10/26/technology/apple-profits-rise-24-on-iphone-5-sales.html?_r=0
http://www.usatoday.com/story/tech/2012/10/12/iphone-5-troubles/1630389/
http://ozappa.com/photo/224 (picture)
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