Abstract
Apple Incorperation is one of the most sought-after computer campany
Introduction
The world wide web is very strong and has changed the word in many ways.
As a fan of Apple Macintosh,I am personally impressed with many of its innovations.It strikes me whether or not the company has really become monopoly.
This paper will explore its business model and its so called
I will closely examine Apple in different areas
-PC market
-software
-portable player
-music
Then the second part deals with the judging of its monopoly position based on the microeconomic aspects.
Apple Inc.
Apple is truly a unique entity, both in what it accomplishes and in how it is organized.During the course of the Macintosh Revolution, Steve Jobs was forced out of Apple. It is no surprise that the Macintosh revolution started to fail rapidly with his departure, despite some attempts during his absence to alter the business model. With Steve Jobs back in the campany, and Mac OS X released, Apple's future is very bright.
Firstly, in order to be able to judge if it Apple is a monopoly or not, we need to know what does monopoly actually means
The definition of Monopoly
Monopoly is “A situation in which a single company owns all or nearly all of the market for a given type of product or service. This would happen in the case that there is a barrier to entry into the industry that allows the single company to operate without competition (for example, vast economies of scale, barriers to entry, or governmental regulation). In such an industry structure, the producer will often produce a volume that is less than the amount which would maximize social welfare”.
So according to the definition above, we will see if Apple is a monopoly or not.
Apple operating system
We all know that in order to use Apple’s operating system or Mac OS, one needs to own a Mac,the only place that this particular system can be run on. The "monopoly" is the fact that you can not buy Mac OS and install it on a computer from another vendor - so you are stuck with overpriced item from a single vendor. Also,
Apple has always provided a complete computing experience. From the very beginning Apple sold the hardware, operating system and the basic applications one would need.
However, most people think that monopoly is measured in terms of market share. This is also misunderstood. People would say that a company with 5% market share for personal computers cannot be a monopoly.
When the word monopoly is spoken most immediately think of the board game made by Parker Brothers in which each player attempts to purchase all of the property and utilities that are available on the board and drive other players into bankruptcy. Clearly the association between the board game and the definition of the term are literal. The term monopoly is defined as "exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices" (Dictionary.com, 2008). Monopolies were quite common in the early days when businesses had no guidelines whatsoever. When the U.S. Supreme Court stepped into break up the Standard Oil business in the late 1800’s and enacted the Sherman Antitrust Act of 1890 (Wikipedia 2001), it set forth precedent for many cases to be brought up against it for years to come.
We all hear the term “monopoly” before. If somebody doesn't apprehend a monopoly is outlined as “The exclusive possession or management of the provision or change a artifact or service.” but a natural monopoly could be a little totally different in which means from its counterpart. during this paper we'll be wanting into the question: whether or not the govt. ought to read telephones, cable, or broadcasting as natural monopolies or not; and may they be regulated or not?
Unfortunately Apple is able to buy its way out of trouble and slowly knock its competition. Apple needs new regulations enforced on it to keep the company in check. Especially because Steve Jobs went into the company with full intentions of domination and dominate he did. Apple was kept mildly in check by the Anti-trust law which Apple still managed to find loop holes in. Finally the evidence of a growing monopoly is there. Apple has even gained scrutiny on an international scale. Apple is pushing their boundaries and in the future will eventually cross the line in to monopolistic actions.
Before mentioning the strength of Microsoft’s influence on domestic, as well as the foreign economy, it is crucial to examine the significance of a monopoly, and how it relates to a country’s fiscal structure. According to Webster’s dictionary, a monopoly is “the exclusive ownership and control of a commodity or service in a given market” (Webster’s Dictionary 337). Predictably, thought, there are degrees of control, and thus degrees of monopoly. The economic theory separates the idea of a mono...
... the DOJ require the New York Times to eliminate its business section in order to protect The Wall Street Journal? Why should the answer to that question be any different if the Times were to sell its business section separately, or if the Times sold 90 percent of the newspapers in New York? Our antitrust laws were not intended to prop up competitors but to ensure that consumers benefit from the widespread availability of goods and services at fair prices." Therefore I truly believe Microsoft is not a monopoly.
A monopoly exists when a specific individual or an enterprise has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it. A monopoly sells a good for which there is no close substitute. The absence of substitutes makes the demand for the good relatively inelastic thereby enabling monopolies to extract positive profits. It is this monopolizing of drug and process patents that has consumer advocates up in arms. The granting of exclusive rights to pharmacuetical companies over clinical a...
America’s Monopoly Problem by Derek Thompson is a short article that talks about the monopoly issue in America. It starts out talking about all the of the different areas in America that have monopolies in them. Things like the online stores, grocery stores, Airlines, music ebooks, and beer. Then Thompson begins to talk about the beginning of the industrial age of America and how the Sherman Anti-Trust Act was placed. Talking about how a business with a monopoly didn’t just dominate in its own industry but that business also had political power. Thompson goes on and discussed how monopolies in the 20th century have come around. He starts to talk about what some of these huge companies are doing to cause less competition. Then he talks about what the government is trying to do to prevent these huge companies from doing such things. Then Thompson goes on to discuss about how big these monopolies can get before they are bad for the economy.
As described by Irving Fisher, a monopoly is a market with the "existence of competition". This absence of competition leads to a situation where a specific company is the only supplier in a certain market. The existence of monopolies has profoundly impacted history and significantly shaped the way we as consumers see the world today. Whether for better or for worse, monopolies have been a large part of human history, they caused wars and protests due to their utter control over markets and played huge roles in the Industrial Revolution, Anti-Monopalism helped create laws to protect the consumers, and they sparked global trade, built new industries, they shaped laws, economies, etc. To begin from the true beginning, we have to start in the
It is a well-known fact that Microsoft is the most marketed operating system. This can be explained by the decision by Microsoft to design and sell its operating system to other computer manufacturers. This meant making it compatible with other hardware. Apple did not choose to do this, making its operating systems only compatible with its own computer hardware (Derene, 2009). In a website article called “HongKait.Com: Online Tips for Designers and Bloggers” Nina Krimly states statistics that identify Microsoft as controlling 91% of the market while Apple Mac around 5%. The exclusivity of Apple did not make it popular among those who used the computer to work on projects both at home and at work in the past ...
By law a monopoly is not allowed to exist in the US. It has been long debated whether Microsoft is a monopoly or not? Among other charges Microsoft was charged with "monopolizing the computer operating system market, integrating the Internet Explorer web browser into the operating system in an attempt to eliminate competition from Netscape, and using its market power to form anticompetitive agreements with producers of related goods" (SWLearning).
In the late 1990s, with the release of Windows, Apple was placed on the right track. Apple released its’ 20th Anniversary Macintosh in 1997 which marked the beginning of Apple’s return (Crofford, 2011). The next year, Apple released the IMac, which was a highly received by the public. Apple reported over $80 billion in cash on its’ last Form 10-K filing with the Securities and Exchange Commission (Emerson, 2011). Today Apple produces several different products including IPhone...
There is a simple argument to prove Microsoft is a monopoly by examining Microsoft itself. Microsoft is a Monopoly because “Microsoft’s share of the worldwide market for Intel-compatible PC operating systems currently exceeds ninety-five percent (Conclusions).” And that “ninety-five percent” is enough of the total market of to constitute a monopoly. That is not all; Microsoft also places barriers that help protect its monopoly. That any company “who wants to introduce a rival operating system, such as Linux, faces a difficult hurdle-the ‘application barrier to entry,’ as Judge Thomas Penfield Jackson called it in his decision. The government alleges that Microsoft used the monopoly that resulted to limit competition (Making Monopoly).” Com...
Monopolies are when there is only one provider of a specific good, which has no alternatives. Monopolies can be either natural or artificial. Some of the natural monopolies a town will see are business such as utilities or for cities like Clarksville with only one, hospitals. With only one hospital and there not being another one for a two hour drive, Clarksville’s hospital has a monopoly on emergency care, because there is not another option for this type of service in the area. Artificial monopolies are created using a variety of means from allowing others to enter the market. Artificial monopolies are generally rare or absent because of anti-trust laws that were designed to prevent this in legitimate businesses. However, while these two are the ends of the spectrum, the majority of businesses wil...
Monopoly is the structure in which there is a single seller of products with no close substitutes, so the single seller can have much market power. A monopoly can be recognized by certain characteristics that makes it different from other markets. Monopolies can maximize profits, they can decide on the prices of the goods or product being sold and they can make it so that other sellers are unable to enter the market of
A monopoly is “a single firm in control of both industry output and price” (Review of Market Structure, n.d.). It has a high entry and exit barrier and a perceived heterogeneous product. The firm is the sole provider of the product, substitutes for the product are limited, and high barriers are used to dissuade competitors and leads to a single firm being able to ...