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I think the slowly most businesses would realize if you are a big company, it makes much more sense to capture exclusively the high end market (iPhone) and try
by enitihas 7y ago
I think the slowly most businesses would realize if you are a big company, it makes much more sense to capture exclusively the high end market (iPhone) and try to stay as much away as possible from the low end market. This gives you a lion's share of the profits, while making sure you don't get labelled a monopoly (and people asking you to make your platform open). This is the exact model of Apple. iPhones dominate the high end market, and the high price ensures both a.) high capture of the profit. b.) less market share due to simply being out of reach for a lot of people.
Once you are in the above position, you can do anything on your platform, and since you aren't a monopoly, you have much more leeway than your competitors. Your competitor might be forced to unbundle and compromise the uniformity of their platform, while you can simply choose to not even allow alternative browsers, because you know, you aren't a monopoly. Getting the low end market share might be come to seen as more of a headache than required.
- teknopaul 7y agoIts an interesting take on things. Other view is that Apple is an abusive monopoly any is getting away with it for the same reasons Google is. America is permitting Monolpolies at the moment because it is scared of China. Presumably the US has doubts that capitalism is best and is betting on state supported Monoplies. ;)
- kmlx 7y agoi don’t understand how Apple is an “abusive monopoly” when their iphone market share is 15.8%, while samsung is at 17.3%. was your characterisation related to their app store by any chance?