Using demand-and-supply analysis, consider how the 'multi functionality of the mobile services' has posed challenges for digital cameras, camcorders and GPS navigation devices.

Section B Read the extracts and then answer all g uestions. Extract 1 Rapid Commoditisation and Pricing Deterioration in Consumer Electronics Industry The consumer electronics category of products includes smartphones, computers, televisions, video game consoles, automotive technology, and many other'home products as well as emerging product categories such as wearable and 3D printers. it is a rapidly changing, dynamic industry that is highly competitive and Inuenced by technological developments. Manufacturers are under enormous pressure to bring unique and differentiated products to market Any successful productI-qurckly attracts copycat products from competitors, resulting in rapid commoditrsatr-on and falling prices. ' From a distribution perspective, online retailing has been a major trend and has become much more prevalent within the industry. With the rise of the smartphone, comparison shopping applications and access to direct retailer sites, pricing has also become much more transparent and comparison shopping much easier. Although the US Census Bureau estimates that approximately 94% of all retail business is still conducted in brick and mortar locations. many consumers are now using mobile devices to comparison shop within stores and ultimately making their purchase online if they nd a more attractive price. Purchasing power is in the hands of the consumer. This trend is expected to continue and, in response, many traditional consumer electronics retailers are now enhancing their online systems and implementing price matching policies to better compete. _ The multi-functionaiity of the mobile devices has displaced sales of digital cameras, camcorders, and GPS navigation devices. Not surprisingly, the projected grcwr'r of smartphones and video game consoles is expected to drive strong unit grown. in smartphone and gaming access-cries, which =will offset declines in audio, video, and camera accessories. ' ' Source: Adapted in partfrom EulerHermes, December 20-14