The market structure of the apple industry can be characterized as oligopoly. An oligopoly is a market structure in which a small number of firms dominate the industry. In the apple industry, a few large firms such as Apple, Inc., and Huawei Technologies Co., Ltd., dominate the market.
One factor contributing to the oligopolistic nature of the apple industry is the high barriers to entry. Starting a new firm in the apple industry requires significant capital investment in research and development, production facilities, and marketing. Additionally, established firms in the industry have strong brand recognition and loyal customers, which can be difficult for new firms to compete against.
Another factor contributing to the oligopoly in the apple industry is interdependence among firms. Because there are only a few firms in the industry, the actions of one firm can significantly affect the other firms. For example, if one firm lowers its prices, the other firms may respond by also lowering their prices in order to remain competitive. This interdependence can lead to price stability in the industry, as firms may be hesitant to engage in price wars that could harm their own profits.
Despite the oligopoly structure of the apple industry, there is still some degree of competition among the dominant firms. Apple and Huawei, for example, compete for market share in the smartphone market, with each firm offering a range of products at different price points. In addition, there are smaller firms in the apple industry that offer niche products or cater to specific segments of the market.
Overall, the market structure of the apple industry is primarily oligopoly, with a few dominant firms and high barriers to entry. However, there is still some degree of competition among firms, and there are also smaller firms that offer niche products.
