Critical Factors Promoting Customer Loyalty to Smartphone and Mobile Communications Service Providers‪.‬

INTRODUCTION For decades, wireless carriers have treated handset manufacturers like serfs, using access to their networks as leverage to dictate the kind of phones to be manufactured, their cost, and the available features. Carriers have largely viewed handsets as cheap, disposable lures that have been massively subsidized to snare subscribers and lock them into using proprietary services. However, the iPhone has upset that balance of power. Carriers are learning that the right phone--even a pricey one--can attract customers and bring in revenue. Now, in pursuit of an Apple-like contract, every manufacturer is racing to create a phone that consumers will love, instead of one of that carriers will approve. Currently, the market for high-end phones like the Apple iPhone is growing. Many people want the Internet, video, and personal digital assistant (PDA) features in one device. The smartphone market will likely continue to expand rapidly in coming years. As a result, more companies are entering the market and increasing competition.