Thursday, September 2, 2010

Telecom 1st Blog Post

Motorola has “Out-Apped” Apple in China. This is primarily because it is so difficult to find and purchase Apple iPhone applications. Motorola has also started a new store called Shop4Apps, which is not only available in Chinese but also doesn’t require a dual currency credit card. If this is to tell us anything it is that the perhaps the fast growing economy in the world now prefers Motorola devices over Apple’s.

Globalization has caused what is known as a GLIS, or global information system. With globalization any company can now produce goods in countries where they can pay workers the lowest wages. This practice is known as outsourcing. This has affected the growth of the telecommunications industry dramatically because of global software development (GSD). Most of the GSD occurs in Asian countries due to the lower minimum wage.

7 comments:

  1. This is a really interesting post, do you have the source/article which you received this information from?

    My main question is China's relevance as a consumer in the cellphone industry and what percent of Apple/Motorola's market is based in China?

    Your post correlates with an article I read today regarding China's policy towards domestic telecommunications. China is now requiring cell phone customers to provide identification when they set up a mobile account. This policy is required for citizens and visitors of China. This policy was enacted in order to deter previous problems of "spam, porn, and telecom fraud". I think this government initiative will potentially send a signal towards various telecommunication industries that China is serious about effectively promoting telecommunications domestically. Policies that promote stability within the industry will provide investors and businesses with the confidence needed to actively promote and engage their products within China.

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  2. Sorry, here's the link to the article I'm referencing:

    http://news.cnet.com/8301-27080_3-20015388-245.html

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  3. Considering the "overtake" Motorola is doing in China, Apple should take some measures and concentrate in this part of the world in order to proceed with its actual sell of products.

    I have the same question as Toby, what percentage of Apple/Motorola selling concentrates in China? Depending on this information, Apple incorporation should worry about focusing on this area and start offering better products.

    In the music media Sony is “playing” against Apple. Sony Corporation is introducing a product to their market, which allows Sony TVs, Play Stations and other devices to connect to the Internet, competing directly with Apple Incorporation. The main competition against Apple will be the new music service Sony is offering with unlimited download of music considering Apple sells music in I-tunes.

    This will certainly affect the demand of people towards apple products when other Sony products are available for them with better offerings and most important with fewer expenses. This affects the telecommunications industry in a positive way by causing more competition and increasing efficiency in production. Increase in competition will also lead to a variety of prices that allow for competition and improvement of products. There will be a range of prices available to the public that will go from cheaper to the most expensive depending on the consumer’s wants.

    http://online.wsj.com/article/SB10001424052748703882304575465424032282834.html?mod=WSJ_Tech_LEFTTopNews

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  4. Great article/posting, KobeLikes (Russell?). Please make sure you title your posts more specifically (with the article title is fine), link to the article, and make sure it's clear who's writing the post. Still, you did an excellent job making your post more than just summary of the article.

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  5. Toby, this is a really good example of the types substantive comments everyone should be posting in the coming weeks. Thanks for doing one when it wasn't required!

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  6. Cristina, is this your posting? Please make sure you publish things in new postings in the coming weeks, so it's easier to distinguish what's a posting and what's a comment. Thank you!

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  7. Kobelike is me(Russell Heim). Sorry about forgeting to post the article title, I will from now on.

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