How to break down price leadership

In some oligopoly markets, there are price leaders. I would like to discuss how price leadership breaks down. Today, Apple announces cuts in the prices of several of its products. This might show Apple is losing its price leadership. From the figures that Apple provides, we can see that Apple is the leader in the smartphones market. As the leader of the markets, Apple gains the market power, especially price leadership. With price leadership, Apple could set its price first, and other companies will set their prices accordingly. This time Apple cuts its smartphone's price. Why does this happen? Firstly, there are more competitors in the markets. Secondly, Apple no longer has its operating efficiency advantage. Other companies have as low cost of production as Apple does and an Indian company produces a smartphone with a two-figure price. Therefore, to break down a price leadership, there are two ways: the first is to increase the market competition, the other is to improve scale or technology to catch up with the price leader's product efficiency.