Stratechery United States v. Apple
Mar 25, 2024
The U.S. government's antitrust lawsuit against Apple raises serious questions about monopolistic practices and user experience. The struggle between Apple's strict app review policies and app developers highlights a battle for revenue and innovation. Apple's refusal to create a cross-platform iMessage app for Android showcases tactics aimed at maintaining dominance in the smartphone market. Additionally, the control over its App Store is impacting competition in digital wallets and smartwatch devices, sparking debate about the balance between user choice and market fairness.
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Apple's Virtuous Cycle
- Apple leverages customer loyalty for market power, creating a virtuous cycle.
- This allows them to prioritize user experience and gain leverage over partners like music labels and carriers.
Apple and Disruption
- Ben Thompson argues against Clayton Christensen's low-end disruption theory for Apple.
- He believes Apple's superior user experience will always win the high-end consumer market.
Apple's Integrated Approach
- Apple prioritizes user experience and views modularization as a cost.
- This justifies their integrated approach and control over the user experience.