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There is a controversy over whether iPods belong to monopoly market or not. Those people who say that it is not in the monopoly market categorized iPods as oligopoly market.
The arguments in favor of categorizing iPods as monopoly:
- It dominates with the market share of more than 80 percent.
- Apple built up ‘vertical monopoly’ by introducing generations of iPods.
- DRM had appealed music industries to sell there products through iTunes, which strengthened this ‘vertical monopoly.’
The following points are arguments in favor of categorizing iPods as oligopoly market:
- There are intense price competition.
- Heavy investment on research and development.
- Non-price competition.
- Patented technologies.
- Consistently creating new application.
In my opinion, iPods are in monopoly market. The arguments made in the oligopoly categorization are correct, however, I think that they’re just smart moves of Apple to dismantle the image of monopoly on their market.