[riverdawg]

Apple has monopoly power in the smartphone market; i.e., it faces a downward-sloping demand curve for its product. Cutting the pay of its CEO will not affect Apple's marginal revenue or its marginal cost of production. Profit-maximizing output and price would therefore be unchanged, but it's total profit would rise even further.

ECON 101

[dfwgator]

The smartphone market is maturing, it reaches a point where most smartphones will be “good enough” for a good period of time.