Question

Do you think Apple is engaged in any monopolistic practices? If so, what are they?

Answer 1

Apple has products that are differentiated in nature, such as iPad & iPhone among the other products that are clearly distinguishable from the other brands in terms of quality and features. So, it can be said that Apple is engaged in monopolistic practices. More precisely, these practices are as follows:

1. Apply makes value based pricing that is on the basis of quality it provides and value, that is perceived by the consumers. It is the typical example of monopolistic practices, applied by the Apple.

2. Apple tries to cater to the specific segment that can pay for the higher prices of their products that are effectively based on value, rather the cost incurred in production. As a result, Apple does not produce the products at the level of minimum ATC. It is the case of monopolistic practice, adopted by Apple.

3. Apple tries to skim the market whenever it launches a new product. It is launched in specific markets and in the name of exclusivity, the higher price is charged. It is also done in monopolistic  competition.