Apple as the Price Leader

http://www.t-gaap.com/2013/6/22/apple-has-quietly-moved-into-a-price-leadership-position

Apple was the first mover in the smart phone industry as well as the tablet industry. Many companies have followed with similar products. "A price leader is a firm that sets "acceptable" industry prices or "acceptable" profit margins in the industry" (pg. 262). Apple often seems like the expensive and fancy brand. The first iPhone came out and it was $600. They changed it fairly soon but since the iPhone 3g, the price has started at $199. This is around the price of most new smart phones in the industry. Since Apple had their product there first and made it that price, Apple is considered a price leader.

In chapter 9, there is also a lot of talk about cooperation, or lack there of. Apple is the leader in most of its industries and therefore not only makes them the price leader, but it also makes them not so keen to cooperate with anyone. Apple and Samsung are known to be very competitive and lawsuit happy with each other. They are almost always in court over a copyright infringement case. These companies seem like they will never be able to cooperate. But Apple does of companies it cooperates with to a certain degree. Apple and Microsoft started off on a rocky road when Apple was beginning. Recently however (past 10 years), Apple and Microsoft have been able to be more civil and even use products made by the other company.