Updated: Dec 26, 2022
Hi from Risametric!
Today, I am going to discuss “monopoly” in the modern world economy.
I came up with this topic as I have recently been reading “The Myth of Capitalism”. Since Apple introduced new iPhones this month, I was wondering whether Apple would be considered a monopoly in the market.
Definition of “monopoly"
To begin with, how far do you know about “monopoly” in business?
The Economic Times refers to monopoly as a market structure characterized by a single seller, selling a unique product in the market. This situation naturally leads to the elimination of competition, leaving only one company in the marketplace to gain a large profit.
At first, I simply assumed that that companies such as Google, Amazon, Meta, and Apple are monopolies in their industry in the US. But how and why are they classified as monopolies by some people?
I took a close look at Apple as a case study this time.
The monopoly of Apple in the App Store
Although I have long believed Apple as a monopoly in the market, I now think that the company itself may not be the monopoly: their iOS system is.
While Apple’s market share in the mobile phone market has been increasing each year, the statistics have never reached over 50% based on data from Statista, meaning Apple still does not have control over the mobile phone market.
However, Apple has exerted its monopoly power on iOS markets. It has become clear to many iPhone users that the development of the Apple Store has created barriers to competition and excluded rivals.
From these explanations, answers to today’s question largely depend on how people perceive Apple as a company. I conclude that Apple has monopoly power via App Store. Nonetheless, others may disagree with my opinion.
So here are my questions for you this week!!
What do you think will happen if the number of monopolies increases in the future?
How do you think monopolies affect Capitalism, particularly in the US?
Thank you for reading :)