Question

The Dept of Justice sues Apple over an eBooks price-fixing scheme. How do you think the market will respond? http://money.cnn.com/2012/04/11/technology/apple-doj-ebooks/index.htm

Answer 1

It's not quite clear what answer you expect. If one assumes the strong-form efficiency of the market, then it has already responded.

Answer 2

Again, the answer depends on what issues interest you the most? According to the article, management new about higher costs for consumers, so is it a corporate governance issue again? Or maybe it is an issue of supplier/buyer power? Or you are interested in the work of the DOJ: since DOJ interefered one may guess what's at stake in the ebook market. So, we may expect new competitors to enter the market?

Answer 3

See atam u want to know about capital market performance of Apple. If Apple will lose the case so the investor's will respond according to the judgment. I agree with @Vaboro that it is the case of strong form of market efficiency.

Answer 4

...EMS is an assumption of the model of the market in order to be able to apply some or other market analysis instruments

Answer 5

I guess I'm curious to know whether you think consumer confidence will be affected, or if people will continue to buy Apple products because of their popularity in spite of any evidence of market manipulation.

Answer 6

obviously it gets affected if in case the judgment is against Apple Co. people will lose some confidence over Apple

Answer 7

I used to have several issues with Apple when I inadvertently purchased apps in AppStore. When I filed those issues they always gave me my money back.
About a month ago I received notification of their new terms of sale. I could either accept their new terms or stop using AppStore. I accepted. Unfortunately, I hadn't read neither their previous terms of sale nor their updated terms of sale.
I recently had a similar issue with AppStore. I inadvertently purchased an app again and filed for reimbursement. They refused. I asked them why they refused and supposed that their terms of sale were somehow connected. They sent me links to their terms of sale and to their feedback page.
I read their terms and found that "ALL SALES ARE FINAL" which means no returns. I googled the Internet to find out the meeting of the phrase and in particular found this phase: "Truth is, you don’t have to offer any kind of a refund on your product IF your product is really something of true value."
Apple's products do, indeed, have value. They control 70% of the world's tablets market, Power Macs, iMacs and Macbooks are state of the art, iPhone has no competitors in the world, just try to find another device with 326 dpi display resolution, I personally know only one but with a 2 times smaller screen. All Apple's products are sold at a premium and we basically know nothing about their costs compared to Apple's competitors and I bet their costs are not higher, and they benefit from scale and scope economies.
I don't think people buy Apple's products because they are popular. Its products are popular because people buy them. And because of the network effects sales reinforce popularity and popularity reinforces sales.