$Apple(AAPL)$
The essence of a monopoly lies in the fact that customers either cannot switch or face extremely high switching costs.
For Apple (AAPL), the key is the iOS App Store, which makes switching prohibitively expensive for users.
This is why tech companies command high valuations—customers simply can’t switch. Even with a 10x price hike, they have to keep paying because the cost of business disruption is far greater. Dependency on the ecosystem makes it unavoidable.
For high-tech companies, a critical factor in assessing long-term value is whether customers can easily replace their supplier. If they can’t, that company has a durable competitive edge.
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