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Apple pricing strategy essays

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Despite its high price, consumers across the country stood in long lines to buy the iPhone on the first day of sales. Most of the users described themselves as technologically sophisticated. In general, iPhone users were over represented in the occupations that are usually early adopters of technology: professional and scientific users, arts and entertainment, and the information industry. Now, the challenge for Apple is to get their product beyond the youthful technophiles and into the hands of mainstream users in order to maintain sustained growth. While the early adopters are a great group for launching a roduct, without mainstream use, the early success would not be lasting. This is why Apple has decided to use different pricing strategies such as the skimming and versioning.

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Please join StudyMode to read the full document. Apple prices strategies. Introductory prices. This strategy means to set low prices that are used to gain entry into the market. It is usual used from startup companies and companies that want to enter in the new market. Establish a high reference price Behaviorial economist Richard Thaler has noted that consumers are really bad at making decisions about value and constantly need "reference prices " for comparison. Is that too much?

Vertical integration

Pricing Strategies : 1. Penetration Pricing : This pricing strategy is followed by companies with the intention to maximize their market share. Example: China Mobile Phones in India. This is one of the fastest growing industries in India. China mobile phones are cheap and offer the same features as a expensive mobile from some other well known manufacturer few samples of Chinese mobiles are shown
Disclaimer: This work has been submitted by a student. This is not an example of the work written by professional academic writers. Here you can order a professional work. Find a price that suits your requirements. The concept of differentiation has also been widely adopted by Apple Inc in enhancing its competitiveness and profitability.

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