The reason why people buy iPhone: Information Cascades
In 2007, when Apple first introduced its newest device called iPhone, it instantly became one of the most-talked about consumer product ever. Since then, whenever newer version of iPhone came out, thousand and thousands of customers lined up in order to buy iPhone. As a result, in 2011, iPhone accounts for 20 percent of entire Smartphone market. For one single company, Apple is leading the Smartphone market. The newest version, iPhone 4s, came out a few month ago and more than 4 million units has been sold already. iPhone itself has a lot of great features and an amazing design which attract customers to buy the product. However, I strongly believe an information cascade is the cause of exponential growth of iPhone sales.
According to many critics of consumer product, it is proven that Samsung’s Smartphone Galaxy is more advanced and well made Smartphone than Apple’s iPhone in terms of battery life, hardware and so on. Furthermore, iPhone is expensive product compared to other similar products on the market. Therefore, it looks like buying other Smartphone makes more sense. Still, people prefer iPhone to any other Smartphone. This only can be explained in terms of information cascades.
When iPhone is released, every newspaper and magazine talks about iPhone. Then consumers start to talk about iPhone as well. In turn, more and more people are becoming interested in the iPhone. As a result, consumer forgets about his own information and follows the other choice. They believe it is just better and cooler to have iPhone. Thus, as more consumer buys iPhone, more future consumer gets interested in iPhone and eventually buys it. Therefore, for the past five years, Apple’s sale grew exponentially and its increment in market share is unstoppable. Also, Apple created features like iMessage and bump where only iPhone users can utilize. Therefore, in order to communicate and interact with people who have iPhone, people must buy iPhone. This causes more people to buy iPhone even if it is not the best choice.
Some people might defend iPhone by saying it is just a better product than any other product. Nevertheless, I believe it is word of mouth and great number of users which makes more people to get iPhone.
http://bits.blogs.nytimes.com/2011/10/31/new-iphone-faces-battery-complaints/?scp=2&sq=iphone&st=cse