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Apple products work best when they stay within their ecosystem. they are playing well. Things will be fine. That’s one of the reasons why an iPhone user buys his iPhone in the first place and doesn’t care about the rest of the equipment he adds later. Tim Cook’s tongue-in-cheek response to a reporter’s complaint that the best girlfriend’s iPhone lacks girlfriend RCS support (scheduled for later this year) was “buy your mom an iPhone for her.” That’s about it. A little tone deaf? perhaps.But everyone knows things, including Tim Cook just work Within Apple’s ecosystem.
But the US Department of Justice doesn’t seem to like technology that just works. The Department of Justice today filed a landmark lawsuit against Apple, accusing the company of having a monopoly on smartphones. In the lawsuit, the government claims that one of the world’s most successful and valuable companies controls mobile phones, and that Apple is using them to extract more money from consumers. He frankly stated that he was. “Rather than revolutionizing the smartphone market, Apple is stalling its development,” said Deputy Attorney General Lisa Monaco. You can read the full lawsuit here.
This is a bold claim, but don’t get me wrong. And one that has absolutely no benefit. Honestly, this whole lawsuit stinks. Not because of Apple’s alleged anti-competitive behavior, but because the Justice Department wants the company to succeed.
Success is clearly anti-competitive
The Justice Department appears to have a problem with Apple keeping its toys (messaging, smartwatches, digital wallets) away from other children. Why is this so bad, you ask? That’s because it makes ditching a team’s iPhone less appealing. It is not that any of these causes are particularly bad; rather, the problem is the combination of what is considered anticompetitive.
Casting Android users into a green bubble isn’t just an inconvenience, according to the DoJ. This is a Machiavellian plot to keep iPhone users away, especially teenagers who can’t live without their girlfriends. Next is the Apple Watch. The Justice Department argues that this exclusivity is less about innovation and more about keeping users locked into Apple’s ecosystem. Don’t forget your digital wallet. The Justice Department claims that Apple’s NFC blockade is less a security issue and more about keeping Apple Pay on top.
“These choices define us,” Apple says. That’s true. That’s not an exaggeration. This is not an angry reaction to a lawsuit against a company that clearly doesn’t like the facts being sued. That’s the truth. Apple’s ecosystem is a core part of the company. That’s why Apple devices are so popular. How can a product so harmful to consumers become the best-selling smartphone? Maybe, shockingly, the Apple ecosystem isn’t some nefarious anti-competitive scheme. Is it? Can it provide the best possible experience for Apple users? And could Apple find a way to do so profitably? That’s right.
The Justice Department’s main argument against Apple is that the company has a monopoly on smartphones. According to GlobalStats, Apple’s share of the US smartphone market is just over 60% in the US. It’s not a monopoly. In trying to make this case, the Justice Department has brought in Samsung (the exact opposite of Apple) and is using the proceeds to assert its monopoly. Of course, this argument itself proves that Apple does not have a monopoly. The existence of another company defies explanation.
To make sure no one is fooled, the Department of Justice wants to create some kind of fabricated submarket for “performance smartphones” in which Apple conveniently has a 70% market share. We can all bend statistics to express the point we want. Creating submarkets is not evidence of a monopoly. And if all that fails? They want to scream that Apple’s attempt to establish a monopoly is also illegal.
One of the biggest arguments in this case is that Apple is making it difficult for developers to create apps that work equally well on Android. Examples include super apps like WeChat and cloud streaming games. These challenges seem to make it difficult for users to switch phone platforms.The Department of Justice may not realize it, but super apps like WeChat teeth Cross-platform – on the App Store and Play Store. How easy or difficult it is for developers to make it happen (hint: it’s pretty hard) is not the issue here, the consumer is. Oh, and cloud gaming too? This is only possible on Android devices unless you are in the EU. So much for locking you into your iPhone, right?
Now let’s move on to Apple’s own products and services. Everyone knows that Apple Watch is exclusive to his iPhone. But by not allowing third-party watches to work with iOS, the Department of Justice considers Apple to be anticompetitive. What’s not clear to the Justice Department is that Apple’s own defense is that an Apple Watch with Android support was not possible due to technical limitations. When it comes to his Android watch on iOS, the Department of Justice doesn’t seem to fully understand the technical concept. Apple uses custom chips in its hardware that are designed to work together. Third-party devices do not have these and therefore do not inherently function as well.
As for Apple Pay, the Justice Department argues that not allowing third-party payment apps makes it difficult to switch platforms. But actually the opposite is true. Apple Pay is advantageous for his iPhone. It’s much more private than using a regular card because your card number (which could be used to collect personal information) is hidden. In fact, this is why I use my iPhone instead of switching away from it.
It all comes back to the argument that Apple’s products, services, and software work well together, making it difficult to switch to a competitor like Android. A competitive operating system with almost 70% market share worldwide (according to Statista), it is actually considered a monopoly. But intent seems to be the issue here. These features of the iPhone objectively make Apple’s products and software better.
Once again, the Apple Watch, Apple Pay, and other ecosystem elements are why people want to use Apple products. Apple is trying to make its products and services better for its customers. That’s why it sells more. You know, Econ 101. But apparently Apple got too good at this. Apple was too successful. The very features that make people want to use the iPhone are “unfair” to iPhone users. Because that means you can’t switch easily. Let’s talk about a catch-22.
In fact, most of these iPhone users I do not want Switch. A 2023 study conducted by Consumer Intelligence Research Partners revealed that 94% of iPhone buyers continue to use their Apple phone and 91% of Android buyers continue to use Android. And how many defected? Only 4% of Android buyers purchased from iPhone. People want to stick with what they have, whether it’s an Android or an iPhone. However, you can switch if you want to. You are completely free to purchase any mobile phone. Nothing can hold you back.
iPhone users love the Apple ecosystem…because it’s good. But the Justice Department wants to make it seem like the ecosystem that attracts users is itself bad for users. Apple’s success has apparently been too successful for the Department of Justice.
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