Introduction The market structure of Apple store is oligopoly. In the market, the Apple store’s iPod represents a vertical monopoly. This is a situation where a particular company has the control of all the aspects of distribution, production and product sales. Although Apple store is not a company on its own, the iPod hold a dominant position in the market 1 . This paper therefore seeks to discuss the market structure where Apple store operates and why it is in that market. What the economic theory says about the role of advertising in this particular market and the observation made on the data. The economic profits for the firm both in the short run and long run will also be discussed and whether the data supports the economic theory and how the profit stream can change over time (Zielenziger, 2011). As stated in the above paragraph, Apple store operates in an oligopoly market structure. The company is also associated with a vertical monopoly market structure. The Apple store company sells its products in various markets across the globe. It does this through its retail outlets like its online store where the company has sold numerous products to consumers and other business enterprises 2 . The Apple store has invested in programs that promote reseller sales including ASCP which focuses on certain reseller locations and APRP which provides expertise in products and customer service (Deffree, 2011). The Apple store company also sells some computer products to the agencies of the government and the creative markets falling within its geographical location. These markets are considered fundamental to the third party computer applications and hardware developers. The better-quality extension and computing recital of the Apple store products turn up to be the major attraction of the consumers within the market location. In addition, the Apple store company provides computer products to the customers within the scientific market just as it does to the information technology markets (Apple Inc., 2011). The economic theory says a lot in the role of advertising of the Apple store company. According to the economics theory of pricing and revenue, it is very logical that if the price of a product increases, the revenue should increase as a result. Due to the improvement of technology, the Apple store company has been able to produce high quality product which have quite a show of demand. Even though, the prices of the new products such as the Iphone4 and the new Mac handbook are high, consumers seem to be quite interested in the product 3 . The hiked prices of the new products should therefore, bring an impact in revenue during a particular period. According to the company’s reports, the revenue has risen from $99.9 billion to $108 billion as at the year 2011 because of the adverts. It is now evident from the economic theory that the role of advertising is very significant in the revenue accruals (Deffree, 2011). According to the economic theory, the role of advertising is sensitive to issues such as in the appreciation of how the customers predispose towards the effects resulting from adverts. Advertising makes an impact to the customers about the products, it creates awareness, evokes an immediate response from the customer, it communicates messages to the t