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I think we will see the change of the market of smartphone through the windows phone is about to start to pre-order. Windows phone is one of the biggest competitors of Iphone over the world. In this case, the supply of the smartphone increases. And I believe the demand or price of iphone is going to chance because of it, after people consider about the oppotunity cost of either buying iphone or windows phone.

Yes I do agree with you that the "windows fones" are going to create a huge competition with the apple iphone and i think this is a positive aspect to the phone market because now the iphone will probably not dominate the phone market anymore and it's price will drop, making it more availible to people. Also this is a positive aspect that there is competition because it will lower the prices of telephones in generally making it more availible to everyone. Adding to the competotion aspect, it will force the to companys to finance their reserch even more, to try and beat their opposition, which will improve the technology of telephones of our day!

In this article author talks about excise tax and specificly about excise tax that was imposed in 1898 and survived till nowadays. The purpose of that taxation was to pay for the Spanish-American War. The war was over in 6 months but tax stayed. The amount received from taxation was about $300 billion, and the amount spend on war was $6 billion. This tax is very unfair to customers, "This is a 19th-century tax on a 21st-century technology," says Jim Cicconi, AT&T's general counsel. The original purpose of the tax was to raise revenue for a specific purpose, and to do so in a way that would not be noticed by the average consumer. Today, the purpose is gone, and consumers are definitely feeling the pinch. Businesses and consumers pay the same: 3% of the total. On a $100 phone bill, that works out to $3. On a $10,000 bill - not uncommon for businesses - the tab is about $300. Another important fact pointed in that article is that phones were luxury during XIX century, but now they are almost necessities. Seven federal courts have so far declared the tax to be illegal.

The article shows that the selling for iphone 5 have been incredible. It's because the demand for the new iphone is extremely high so that it took only an hour for Apple's site to change its shipping estimates for the product to two weeks. And it's now the most expensive smartphone over the world due to the high demand of iphone. And i think it's also because of the supply of the phone is limited, which is much less than the demand. Further more, in the demand supply graph, the increase in demand causes the demand graph shifts to right, which shows us how the price goes up and the company are going to have more income. I think that's how the news relates to the topic for this week.

Samsung and Apple are the most popular companies producing highly desired products, but it seems that Samsung has took the lead. The cross elasticity value of each respective smartphone is high and positive, making them close substitutes for one another. With the high cross elasticity value, the sales for each product is sensitive to one another, making the market fierce.

This article is very interesting, Andy. I find it amazing how blackberry has almost completely dropped off the face of this planet! Its all about samsung and apple now. Since the Iphone 5 came out, I am guessing that the demand for Samsung phones has dropped!