September 19, 2008
Apple's Ecosystem is it open or closed?
Analysis of:
Apple's Store, Apple's Rules, Apple's Peril | www.technewsworld.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: In the last few weeks I have seen the word "monopoly" used several times in different articles about Apple. Most of it stems from the App store related to the iPhone. But does this run deeper?
Analysis: Monopoly --Exclusive control of a commodity or service in a given market, o control that makes possible the fixing of prices and virtual elimination of free competition.
Apple has told a software developer it can not offer for sale its application in the Apple iPhone store. Is this restriction to eliminate competition of a similar Apple product that has not been released yet. It appears so. Apple restricts the use and sale of it OS for its own computers only, and this has resulted in a suit on opening up the software to all by a new manufacturer of computers that do in fact run on Mac OS. A few Apple developers have voiced concern that Apple is indeed blocking competition and have even called on others to stop writing apps for the iPhone. Apple has not provided a clear policy on what it will approve or disapprove for sale in the Apple store. So why go to the expense of development, if you don't know if you can sell it. Right now the iPhone demand makes it is worth the risk. But will it be in the future?
But if Apple continues to act in a monopolistic way will the Justice Department start asking the question. They have with other companies that had a closed ecosystem. Remember when the only phone you could use with the old ATT was a Bell Phone supplied by ATT?
Analysis: Monopoly --Exclusive control of a commodity or service in a given market, o control that makes possible the fixing of prices and virtual elimination of free competition.
Apple has told a software developer it can not offer for sale its application in the Apple iPhone store. Is this restriction to eliminate competition of a similar Apple product that has not been released yet. It appears so. Apple restricts the use and sale of it OS for its own computers only, and this has resulted in a suit on opening up the software to all by a new manufacturer of computers that do in fact run on Mac OS. A few Apple developers have voiced concern that Apple is indeed blocking competition and have even called on others to stop writing apps for the iPhone. Apple has not provided a clear policy on what it will approve or disapprove for sale in the Apple store. So why go to the expense of development, if you don't know if you can sell it. Right now the iPhone demand makes it is worth the risk. But will it be in the future?
But if Apple continues to act in a monopolistic way will the Justice Department start asking the question. They have with other companies that had a closed ecosystem. Remember when the only phone you could use with the old ATT was a Bell Phone supplied by ATT?
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