1) Apple are introducing variable pricing for music downloaded from i-tunes. More here (New York Times) and here (the BBC's website). This would suggest that apple are desperate to squeeze as much revenue as they can from their customers.
The marginal cost of downloading a track is zero, so any additional revenue (marginal revenue) is extra profit for Apple.
In considering the nature of the music downloads market, can you explain how contestable it is?
2) The computer hardware market is oligopolistic in nature. To differentiate themselves from their competitors Apple employ two main strategies. Firstly, they have created a brand to which their customers are unbelievably loyal; it is almost a cult. Secondly, they innovate all the time. This year's "Mac Show" was unusual in that it did not launch a new, innovative product.
The Onion's satirical take on it all is - as always - brilliant.
Apple Introduces Revolutionary New Laptop With No Keyboard
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