Question

Apple has come under the intense scrutiny of the Department of Justice over the past several years for operating as a monopoly. Would you define Apple as a monopoly? Why or why not? Would you regulate Apple? Why or why not? Would you break up Apple? Why or why not? Are consumers happy with Apple?

Answer 1

Explanation:

- Apple have a monopoly is exaggerated sentence in term of Smartphone market. Since market entry for Smartphone producer have easy and there are less barrier to entry in market for them. Apple does not hold most of the share for Smartphone segment. There are many companies that have better Smartphone market share.

- Apple have competitive advantage of using IOS on their devises which no other can have, meanwhile other all companies have relied on Google’s android operating system and have to rely on Google.

- If Apple have been known tweak the market by offering feature that will create monopoly in market and kill the competition for new product and existing product you can regulate Apple, since it’s not fair way to operate in market.

-By creating monopoly you restrict other to earn a profit in market and that is not fair way to earn a profit, since company does not have to earn in certain way that kill opportunities for others to earn profits.

- Since apple has created new model that has changed the way apple has offered similar feature to customer in every model. Customers are happy that apple has created new features and interesting specification that give them advantage over other, but pricing of new devices has made customer unhappy since it’s very much costly compared to others.