3 ms·
90% of global smartphone profits does not mean 90% of devices in the market. It's been demonstrated for years that iPhone users are much more likely to pay for
by Dracophoenix 5y ago
90% of global smartphone profits does not mean 90% of devices in the market. It's been demonstrated for years that iPhone users are much more likely to pay for apps. It's possible to be extremely profitable and not have a monopoly on the market because the iPhone isn't just an appliance but a Veblen good as well.
- zopa 5y agoIt does however mean Apple has significant market power. Almost by definition: in a very counterfactual perfectly competitive smartphone market, everyone sells at cost and there aren't any profits. Reducing it to monopoly vs. not-a-monopoly is drawing too bright a line. And I don't really think iPhones are a Veblen good exactly. Targeted at higher-income buyers? Yes. Valued as much for design as aesthetics? Absolutely. But pretty sure a $500 iPhone would outsell an otherwise-identical $800 iPhone, nevertheless.