  Price discrimination is a practice where firms utilize varying sensitivities
to prices among consumers to increase profits. The welfare effects of price
discrimination are not agreed on among economists, but identification of such
actions may contribute to our standing of firms' pricing behaviors. In this
letter, I use econometric tools to analyze whether Apple Inc, one of the
largest companies in the globe, is practicing price discrimination on the basis
of socio-economical and geographical factors. My results indicate that iPhones
are significantly (p $<$ 0.01) more expensive in markets where competitions are
weak or where Apple has a strong market presence. Furthermore, iPhone prices
are likely to increase (p $<$ 0.01) in developing countries/regions or markets
with high income inequality.

Econometrics