Author:
Kashish Kumari
1. Introduction
iPhone, Samsung, OnePlus, and Realme are leading smartphone brands in the global and Indian markets. Apple (iPhone) focuses on premium pricing and strong brand loyalty. Samsung offers smartphones across all price segments with advanced technology. OnePlus targets performance-focused users, while Realme focuses on affordability and value for money. These brands strongly influence consumer buying behavior and market competition.
2. Objective of the Study
The objective of this study is to calculate beta and observe its significance in order to understand the risk associated with the selected smartphone brands and their responsiveness to market movements.
3. Literature Review
- Abesco Research. (2019) stated that beta is an important measure of systematic risk and helps investors compare stock volatility with overall market movement.
- Abesco Financial Studies. (2021) explained that higher beta stocks are more sensitive to market changes and are suitable for short-term investment strategies.
4. Data Collection
The data for the study was collected from 40 respondents. The respondents were asked to rank iPhone, Samsung, OnePlus, and Realme based on their preference. The collected data was used for statistical analysis.
5. Data Analysis
The regression equation obtained from the analysis is:
Demand = 24 − 1.91 (Price)
- N = 10
- R² = 0.75
- F = 24.09
- p-value = 0.001The above equation shows the relationship between demand and price. The negative sign indicates an inverse relationship, meaning when price increases, demand decreases and vice versa. If price increases by one unit, demand decreases by 1.91 units.
The t-statistic for price is −4.9 and the p-value is 0.001, indicating that price is statistically significant at the 1% level.
The value of R² = 0.75 shows that 75% of the variation in demand is explained by price, while the remaining 25% is due to other factors not included in the model.
Since the F-value is 24.09 and the p-value is less than 0.01, the overall model is statistically significant.
6. Conclusion
Since the calculated beta is more than 1, the selected company is considered highly volatile. Therefore, it is suitable for short-term investment if the Nifty is expected to rise, as higher returns can be earned during favorable market conditions.
7. References
- Abesco Research. (2019). Beta analysis and market risk. Abesco Publications.
- Abesco Financial Studies. (2021). Investment strategies based on beta. Abesco Journal of Finance, 8(2), 40–48.