Has Apple Finally Become a Monopoly Like Microsoft?

In this article written by James R. Stoup, he addresses the question if the company Apple has finally become a monopoly just like the company Microsoft. Microsoft has been known as being a monopoly for completely taking over their market for their product. Microsoft broke the law by using their monopoly “to ensure their position in the market, force smaller companies out of business or otherwise stifle competition” (Stoup). So is Apple a monopoly with their products like iPods, iPads, Mac laptops, iPhones, and the digital music world of itunes?

A monopoly is defined as a single seller with complete control over an industry. Stoup decided in his article that Microsoft was a monopoly for their complete control and running their competition to the ground. The question is if Apple is doing the same thing. Apple is a company that focuses on digital music. Apple uses iTunes to make much of their profits. The company gets 30 plus percent of every transaction on iTunes. With that, the selling of iPods helps Apple become a monopoly.

Apple not only is controlling the digital music industry with almost no competition but they are also into the computer and laptop business with the “Macs.” Macs are laptops and computers that are competing with companies like Dell and HP are doing very well. Apple does not completely control the industry of computers though. Unlike the digital music with very few competitors, which would be considered an “oligopoly” the Macs have quite the competition.

Unlike Microsoft’s monopoly, Apple is not doing anything illegal. They are not going out of their way to put other companies down. There are no competitors in the digital music industry that can keep up with Apple. Why is Apple so good? They are constantly improving their products and maintaining low prices. So is Apple becoming an actual monopoly? According to Stoup, yes the company is starting to take control of their market. There is no one that can even come close to competing with Apple with their digital technology. Apple will not last in the long run without any competitors. Competition is always needed to constantly be improving. In their case, they will need competition to keep improving their products or they will get lazy in the long run. Just like Microsoft, Apple is becoming one of the big bad monopolies for their business practices and the quality of their product except Apple is not engaging in unlawful tactics.

http://www.applematters.com/article/has_apple_finally_become_a_monopoly_like_microsoft/