In the U.S., there is almost no competition in the smartphone market. For the majority of Americans, it is either Apple or nothing. It doesn’t matter the price or what Apple releases to the market, so long as it has the half-Apple logo, it’s just fine. There is a strong monopoly in the U.S. smartphone market and this is more notable among teenage buyers. A recent survey shows that 87% of teenagers in the United States are iPhone users. This is much higher than second-place Samsung. The distance between Apple and others in the U.S. smartphone market is enormous. So, why is Apple’s iPhone so recognized by American teenagers? After all, the price of iPhones in the United States is not cheap.
An analysis of the situation reveals that there are two major reasons for this level of acceptance of Apple’s products especially iPhones in the U.S.
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The first is that Apple has the psyche of teenagers. This means that the company has “colonized” American teenagers. Apple has managed to position itself as a great product company. Many Americans especially teenagers see the iPhone as a symbol of wealth and fashion.
Secondly, Apple’s iPhone also has an advantage, that is, it has been famous for decades. Its products such as iPhone, Macbook, iPad, etc. appear in American TV series and movies. This also has a huge impact on teenagers, although many people do not realize that it does.
In general, Apple’s iPhones are decent products, but Apple’s marketing is definitely a more successful factor. This subtly affects the choice of many people, even if it is expensive, it makes teenagers unable to resist.
Illinois bill may force Apple to end the tax on in-app purchases
The state of Illinois in the U.S. recently filed a lawsuit to force Apple to allow local developers to use an alternate payment method for App Store purchases and in-app purchases. According to the senators who support this project, the Apple commission represents a shortfall for the local community, since their turnover is reduced by 30% (reducing the taxes they pay). The senators also believe that the money taken by the company weakens certain branches of activity; in particular, the press which has suffered considerably since the audience has gone digital.
This project originated in a legal dispute between Apple and Basecamp; an Illinois developer who created the professional email app called Hey. This was rejected by the App Store because it did not want to pay tax on subscriptions to its service.
Senator Sara Feigenholtz (D – Chicago) wants tax revenue to go back to Illinois. “As we try to modernize our revenue base, we as a state must tap into lost revenues,” Feigenholtz said. “We need to keep big tech in check.” In 2021, Apple and Google reported $110 billion in revenue from their app stores. Estimating that Illinois provides 1% of app sales nationwide, Illinois lost out on $1 billion in tax revenue, Feigenholtz said.