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The person I was responding to wasn't talking about pricing power, they were talking about monopolies. Apple isn't anywhere near a monopoly in any commodity or service. In fact, they compete with the near monopolies of Microsoft and Google.

Also, being a monopoly isn't in and of itself illegal, it's abusing your monopoly position to harm competition. You have to be a monopoly first.




Pricing power is a test for whether a monopoly exists; it tests for actual practical competition rather than the presence of other participants in a decriptive category which may not actually compete in practice.


It may be a test but having pricing power doesn't mean they're a monopoly. They have pricing power because they deliver more consumer surplus in their products than what they capture. Even in the case of the iPhone business having rising ASPs most of that has come from segmentation of the customer base into higher end models rather than simple price increases.

You don't need to have a monopoly to have pricing power, your product just needs to be differentiated enough.




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