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In the case of Apple I think if you look at the mobile phone usage of people in the top 25% of incomes in America you would find that they are well over 80% mar
by blululu 4y ago
In the case of Apple I think if you look at the mobile phone usage of
people in the top 25% of incomes in America you would find that they are well over 80% market share. While this is a somewhat contrived segmentation, it is also most important segment for a lot of businesses. Monopoly power is typically assessed by the doj at a regional level so it is not unprecedented to arrive at monopoly issues on the basis of a portion of a larger market. The novelty here is about switching costs and bundling.
- dalbasal 4y agoIt's inexact, but not contrived at all. If you've ever worked in online advertising, you'll know to treat apple users as a distinct segmentat without worrying to much about why exactly. There's a reason Google pays Apple so 15 billion pa for search defaults. Adwords would be deeply hurt if Apple decided to withhold its users.
- totalZero 4y agoYou can't cherry-pick a market segment like that. Each successful product has a niche somewhere. Dominant market share is not the same thing as a monopoly, because the existence of competitive alternatives is a check on the behavior of the market leader. Also, it is tough to ignore the fact that any customer can buy a Samsung phone with largely the same capabilities at a similar price point to the iPhone. Not all monopolies are unlawful in the US. There is a need to prove that practices are anticompetitive, such as by unfair pricing or exclusive dealing. If Apple is expected to curate and support an App Store with non-malicious apps and reviews thereof, used on a platform for which they provide an ecosystem of developer tools, they are entitled to charge a fee for that.