In a new investor note by UBS analyst Steven Milunovich, he asks the question, Is Apple an anti-fragile monopoly?” The note, obtained by Business Insider, focuses on the iPhone and the monopolistic power Apple may possibly have with it.
Milunovich explains that because Apple has power when it comes to pricing of its smartphones, it’s a sign that it may have monopolistic-like reach. One characteristic Apple has is the pricing of the iPhone, something Apple puts a strong focus on with its average selling price.
“One characteristic of monopolies is pricing power. iPhone’s ASP of almost $700 last quarter has rebounded to an all-time high despite currency pressure and could further rise with the iPhone 8,” he writes.
To take this a step further, Milunovich says that Apple has a “anti-fragility” characteristic. Anti-fragility refers to the way a company responds to stressors or shock with an increase in capability, resistance, and robustness.
By saying that Apple is an “anti-fragile monopoly,” Milunovich notes that Apple is able to respond to any situation with strength, that it can’t be taken down due its success.