Figure 1: Average independent smartphone repair price as a percentage of original manufacturer (OEM) repair price, by number of local independent repair shops
| Number of local independent repair shops | Average third-party repair price as % of OEM price |
|---|---|
| 1 | 85% |
| 2 | 72% |
| 3 | 60% |
| 4 | 48% |
| 5 | 38% |
| 6 | 30% |
| 7 | 25% |
| 8 | 22% |
| 9 | 20% |
| 10+ | 18% |
Source: Local Consumer Markets Survey, 2022
Note: Third-party screen repairs are carried out by independent tech repairers who compete with the manufacturer's official authorized repair centers.
Explain how the data in Extract B (Figure 1) show that greater competition leads to lower prices in the market for independent smartphone repairs.
