Cell Phones and Competition

Source: EconLog
by Kevin Corcoran

“Here’s a hot shopping tip that I suspect most readers won’t be able to take advantage of – at the moment, Apple is discounting the iPhone in China. But I don’t bring that up because I’m actually hoping to influence anyone’s shopping behavior. … They rarely – almost never, in fact – sell their devices at a discount. … why is Apple now offering their top-end iPhones at discounts equal to hundreds of dollars in China, when they don’t offer anything like that kind of a discount in the United States during the quintessential holiday discount shopping event? It’s because in China, Apple is facing steep and increasing competition from companies like Huawei – competition it doesn’t have to face in the United States market, because the United States government has banned those companies from competing in the US market on transparently thin ‘national security’ grounds.” (05/28/24)