Apple already has a long history fueled by innovation and a cult-like following. Decades of exposure in the industry gave them the advantage of being a dominant player in the market not only for laptops but also for smartphones, wearables, and digital services.
However, Apple's stronghold on the market raises questions about competition and consumer choice. As the company continues to grow more than ever, big tech regulators are scrutinizing each move to avoid any violation.
While Apple has been glorified for its technological advancement from hardware to software, its dominance has started to be seen as problematic for several reasons:
Anti-Competitive Practices
Apple has faced scrutiny and criticism over the years due to several practices that are deemed anti-competitive. At the center of it is its App Store policies that require developers to distribute their iOS apps exclusively.
Over the years, the App Store has been notorious for prioritizing Apple's pre-installed apps over third-party apps, making it harder to discover new apps.
The company is also known for imposing exclusivity agreements with their suppliers and partners which prevents them from working with competitors. This limits the choice for consumers.
High Prices
Apple's dominance and societal value have allowed them to set higher prices for their products. Oftentimes, Apple products are deemed of high quality and deserving of premium prices.
Apple also justifies its market by sticking with its brand image which symbolizes innovation, quality, and luxury. This brand perception encourages buyers to pay a premium price due to the associated prestige of owning an Apple device.
Ecosystem Control
Apple's tight ecosystem offers a seamless user experience that is guarded by the company's strict guidelines. However, its closed ecosystem limits the degree of customization and flexibility to the users compared to Android.
In addition, Apple users who have started to invest in the ecosystem might find themselves in a tight spot to switch to other brands due to incompatibility. Other purchased apps and content are only available within Apple's ecosystem.
Data Privacy Concerns
Apple's data privacy policies have become a focal point in its marketing strategy. The company puts heavy emphasis on the privacy of the users by implementing exclusive features that are focused on protecting users.
Apple has also been lauded for its minimized usage of data collection, especially for targeted advertising. The company also allows anonymization whenever possible.
Regardless, the company still faced some criticism on its other services like some of the features from Siri and the series of stalking incidents linked to AirTags.
Influence on Developers
Developers have been complaining about Apple's alleged monopoly of the market. For the longest time, the company has not allowed alternative marketplaces on iOS devices until the Digital Markets Act (DMA) happened. However, this only affects the European Union.
The dilemma of the developers also includes Apple's 30% commission on all app sales, in-app purchases, and subscriptions made through the App Store. The fee has been since criticized by developers, especially for smaller businesses and independent developers.
