Apple's dominance of smartphone and tablet markets has allowed the firm to lock up 60 percent of the world's supply of advanced touch-screen displays, and to do so with better pricing than would be available to smaller rivals. This is an example of:
A) network externalities that make Apple valuable.
B) high switching costs for suppliers.
C) a complex tech product establishing itself as a killer brand.
D) a growing firm gaining bargaining power with its suppliers or buyers.
E) low search costs associated with a famous brand.

Question

Quizplus · Accepted Answer

Apple's dominance in the smartphone and tablet markets has given the firm significant bargaining power with its suppliers, allowing it to lock up 60% of the world's supply of advanced touch-screen displays at better pricing than smaller rivals. This demonstrates the growing firm gaining bargaining power with its suppliers or buyers.

Apple's Dominance of Smartphone and Tablet Markets Has Allowed the Firm