For the first time in 12 years, Apple has overtaken Samsung in the race to be top of the global smartphone market potentially increasing Apple’s monopoly power is a market that is already fairly concentrated.

Apple has managed to capture over a fifth of the market share, according to International Data Corporation (IDC). Samsung’s share is 19.4%, while Xiaomi and other Chinese phone makers lag behind these two giants of the industry. Despite an overall 3% drop in smartphone sales last year, Apple increased its sales to over 234 million phones. Meanwhile, Samsung faced a decline, citing weaker global demand for consumer electronics. The smartphone market is always evolving, with growing competition from Android providers, a shift toward foldable phones, and an increasing emphasis on the AI capabilities of phones. With Apple and Samsung together still holding a substantial share of the market, it remains fairly concentrated despite their shift in positions at the top.

Apple overtakes Samsung as world's biggest phonemaker - BBC News

1 What is meant by a ‘concentrated’ market?

2 How might the relatively high market shares held by Apple and Samsung affect the prices that consumers pay for their smartphones?

3 Apple's growing market share in the global smartphone industry raises questions about potential monopoly power. Discuss the benefits and costs of a firm holding monopoly power in an industry.