Apple rivals likely to prevent monopoly

London (CNN) -- Apple's ground breaking technology and its uncanny ability to understand what consumers really want has propelled the firm founded in 1976 by Steve Jobs and his buddy Steve Wozniak to stratospheric heights.

Apple built its business on its highly desirable but niche Macintosh computer range. But Apple's invention of the iPod, the iPhone, and now the iPad, has changed the way consumers interact with technology and given Apple unprecedented mass market appeal.

Apple's share of the smart phone market has grown from 0% to 20% in only a few short years, putting it significantly ahead of rivals like Nokia, Samsung, and HTC.

The iPad has become a must have accessory -- at least for those that can afford one. Last year it was responsible for 90% of tablet sales worldwide.

Just how far the company has come became clear over the summer when commentators calculated that the company had more cash reserves than the US government.

 

 

But with success has come criticism. Like Microsoft before it, Apple has been accused of exploiting its position in the market, and not always for the benefit of consumers or society.

Apple is certainly a shrewd operator. It has used its financial muscle to sign exclusive deals, buying up innovative technology, ensuring that rivals cannot use them in rival products.

And it has used that muscle to extract heavy fees from organisations that want to make their content available on the iPad.

Its plans to charge publishers 30% of subscription sales made through iTunes caused an uproar. Apple's unwillingness to share the details of subscribers with consumers -- effectively cutting off publishers from their core audience -- was seen as a step too far.

Questions have also been raised about some of Apple's suppliers. Its Chinese subcontractor Foxconn hit the headlines last year following a series of suicides among its workforce. Labour rights groups raised concerns about the working conditions at the plant.

And Apple revealed that 137 workers at its Chinese supplier Wintek suffered health problems following exposure to a chemical cleaning agent.

Apple maybe attracting more cynicism now and has certainly faced some negative publicity, but when it comes to having a monopoly, it is far from a Microsoft. There are too many rivals biting at its heels.

The Android mobile phone platform, backed by the financial resources of Google, is a real threat to Apple's dominance in smart phones.

The platform is open source, making it easier for programmers to develop new applications, without the restrictions imposed by Apple on iTunes.

And it is not limited to a single handset manufacturer. Rivals are stepping in with phones that not only rival the capabilities of the iPhone, but come with a significantly lower price tag.

The past few months have seen a slew of tablet PCs to rival the iPad. By next year analysts predict that Apple's market share will have fallen from 90% to 70% of the tablet market -- still very healthy but a fall nonetheless.

If anything, it is in Apple's interest to ensure that it does not have a monopoly. Microsoft positioned itself as the default supplier for PC applications and operating systems. Its software may not be the best, but it is used everywhere.

That's not where Apple wants to be. Apple sees itself as an innovator, offering fantastic technology that will leave the competition struggling to catch up -- for a price.

And to be an added value supplier means that Apple will always need other companies around to deliver the cheaper alternatives. Apple will always play hard ball, but it is not in its interests to have a monopoly.

The opinions expressed in this commentary are solely those of Bill Goodwin.