Phones, Apps, and Competition

Earlier today I strolled into Best Buy looking for a Huawei phone to replace my dinosaur of a phone, which is so old that it still has a sliding physical keyboard. I’ve had my current phone since 2010 and needless to say I’m in need of an upgrade especially now that I’m driving and need a GPS. However, that doesn’t mean I’m unfamiliar with smartphones, tablets, and the like, but I never felt the need to get one because I felt it would’ve been too distracting, until now.

Looking at the variety of phones and companies that made them amazes me not just for their complexity in design but how technology evolved so rapidly to the point that it becomes obsolete within a year or even less! Take the iPhone and the new models that Apple rolls out every year. It wouldn’t be possible for new and improved technology to exist if it weren’t for competition between private companies like Samsung or Huawei, because without competition these companies would not have the incentive to keep improving for the sake of staying relevant in the free market. If only one or two smartphone companies existed (basically a monopoly or duopoly) we would experience poor quality phones that don’t have things we enjoy like dual-lens cameras, photo filters, faster processors, and so forth. Now imagine if the government gets involved and props up a company with subsidies using your tax dollars: in this case there will definitely be lousy services and products. For example, the DMV has a monopoly on driver’s licenses and nobody else can issue them except for the government, but if it weren't illegal to compete with the DMV we will see shorter lines and better customer service because a private company has the incentive to be courteous to their customers if they are to survive. Just think about it, have you ever gone to a restaurant with lousy service? If so, did you return to it? I highly doubt your answer is yes because you’ve realized there were far better restaurants around town and the ones that were nasty to their patrons are often the first to go out of business due to the lack of profit.

Likewise we can apply this concept to smartphones and apps especially social media apps. What amazes me is that I can download all the major social media apps free of charge because Facebook, Instagram, and others have figured out how to create enough revenue without leeching off of the government, then pass the savings on to us (they could’ve easily charged yearly for their services). Another outstanding app is Google Maps and other associated GPS systems that have enabled people to travel in unfamiliar places without fear. GPS is a military spinoff technology which developed over a few decades for consumer use and thus became more user friendly. I still remember my parents fussing over maps during road trips and often they had to get new ones just to make sure it was updated, and now we don’t need to go through that hassle because of the free market and thriving competition. So appreciate what the free market can do and note that competition is not a bad thing despite what other people might tell you.