Introduction In 2007, Apple Inc. released another revolutionary product into the mobile market known as the iPhone. In this report the discussion presented will focus on the Company marketing and pricing strategy with a view to identification of possible unfair competitive practices used by the Company. iPhone: Pricing and Marketing Strategy In 2007 the product was released in 4GB and 8GB versions retailing at $ 499 and 599 respectively and was the most publicized mobile device (West and Mace 3). Despite this rather high price consumers reportedly stood in long queues to acquire the device. After only two months the company discontinued production of the cheaper version and reduced the price of the premium version to $ 399 (Sliwinska, Ranasinghe and Kardava 5). The decision to reduce the price of a product so soon after its launch n the market saw many of the early buyers express their dissatisfaction with the decision. As a result the company allowed the early buyers $100 store credit in compensation (Sliwinska, Ranasinghe and Kardava 7). In addition to the pricing issues that saw the beginning of conflict between Apple and its consumers the company is also restricting access to the product both in the US and Europe by selecting only specific carriers to retail the product (West and Mace 11). This plan has seen the device sold at considerably high prices via the selected outlets (West and Mace 2). The device is even sold at a higher price when the buyer opts not to use the retailer’s subscription plan (Sliwinska, Ranasinghe and Kardava 11). This move has seen the sales of the device in Europe produce much lower results than expected. This and the fact that products such as the Apps used to access resources are sold to the consumer in the form of a bundle which may be argued as giving Apple inc. an unfair advantage over its competitors. Discussion on Marketing The iPhone is sold exclusively through AT&T outlets following a much publicized bidding war between the two main US mobile subscribers Cingular (now AT&T) and Verizon (West and Mace 11). This agreement saw the purchase limited to Apple and AT&T outlets excluding third party AT&T outlets such as Radio shack and Best Buy (West and Mace 11). It would appear that in so doing Apple Inc. could maximize its profits through profit sharing agreements. This approach was also favored by operators who realized the value of possessing the high end communication device with exclusive distribution rights for extended periods of time. It has been suggested that owing to the market power of the cellular operators regions without coverage were excluded from the arrangement (Esbin and Szoka 2). This includes countries in which these major operators are not operational. Within the European mobile market Apple Inc. signed exclusive deals for sale of the iPhone with Britain’s O2, Germany’s T Mobile and France’s Orange (Sliwinska, Ranasinghe and Kardava 9). In all these agreements the iPhone was retailing at significantly increased prices as compared to the US retail price for the premium version of $399. For example in Britain if the payment plan is used the device will cost $568while in Germany the plan translate