The article doesn't go in to great detail, but based on the information given, I would say that this specific practice is already prohibited in the U.S.. The re

The article doesn't go in to great detail, but based on the information given, I would say that this specific practice is already prohibited in the U.S.. The relevant excerpt: "Apple Asia ... required carriers to obtain its permission before setting contract prices on iPhones..." This sounds like Apple Asia explicitly approved contract prices, but it depends on how you interpret "setting contract prices". If that literally means setting the price that the customer will pay, then this is not (to my knowledge) the exact mechanism used in the U.S., because the manufacturers cannot approve or deny the actual selling price. Instead, manufacturers rely on a loophole. Rather than saying, "You can't sell an iPhone for less than $199 with contract," Apple says, "You can't advertise an iPhone for less than $1xx with contract." The actual number isn't $199, as we regularly see advertisements for iPhones at discounts from retail, but not much lower. We haven't seen the agreements, so we don't know the actual terms. It may be that Apple has the ability to approve/deny all advertised prices individually. Keep in mind that a retailer is free to sell an iPhone at whatever price point they'd like. The problem is that they have no incentive to do so. Sale prices are a means to get customers in to the store. Imagine a ridiculous hypothetical situation where Walmart advertised the iPhone 5S at $99; that would draw in a lot of customers. However, their reseller terms prevent them from doing so, therefore there is far less incentive to do so. If they can't advertise the crazy sale price, then they can't draw in the number of customers required to meet their ROI requirements for an iPhone loss-leader. The inability to advertise props up the iPhone selling price. Apple doesn't do this just with iPhones, and this is not the only mechanism Apple uses to prop up their prices. We don't know the specific margins retailers make on Apple products, but everyone I know who has worked in the retail industry tells me that the margin on Apple products is much lower than every other PC manufacturer. I can't speak for mobile devices, as I don't know anyone in that industry. It's also worth noting that Apple isn't the only company who employs these practices. There are a number of "high-value" brands that support their pricing this way. Tempurpedic and Rolex come to mind immediately, but I'm certain there are many more.