My primary aim is to discuss Apple’s pricing strategy, which always becomes a talking point post product releases. So Apple is able to keep its supply channels clean as well as make more money on its direct sales. If we’re only buying mid-range devices that we have no passion towards every few years, that could decimate the market and — eventually — leave only a few prominent OEMs standing. In other words, here are the lists of benefits of skimming pricing strategy:-. This strategy is generally used for technological products which is new to the market, has consumers willing to pay a premium price, it is far ahead of the competition. On another hand, most technology companies manufacture the hardware (Dell, Toshiba, Samsung, etc. Queen's Honours List 2019,
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David Bui CEO and Founder of Saleschase.com made a valid point here as he said, “The most potent weapon in Apple’s pricing strategy is differentiation. Then Apple can dominate the very small, ultra-super-duper-premium market, and Android can dominate everything else. When consumers buy Apple products, they know they are entering Apple’s eco-system. That’s why companies like Huawei, Xiaomi, OnePlus, Oppo, Vivo, etc., are all releasing innovative and interesting Android smartphones with prices in the average range of $500 or less. 10 best gif creator apps and GIF editor apps for Android, 15 best emulators for Android to play old favorites, Apple iPhone 12 and iPhone 12 Pro: Everything we know (Updated: Oct. 9). the mid-range market is going to get bigger, Apple won’t include a headphone jack dongle with its $1,000 iPhone XS. Unlike other Android smartphones made of plastic components, Apple uses premium materials like glass and aluminum. Let that sink in for a minute. The big question is, what will Apple’s new pricing strategy for 2018 mean for Android for the immediate future? You can check the slide below that showcases how Apple’s iPhones have evolved regarding hardware enhancements. Apple maintains the reputation of its high-priced products by only offering retailers such as Wal-Mart a marginal wholesale discount. Hopefully, I’m wrong. Apple’s premium pricing strategy and product differentiation (2014), Samantha Nielson, retrieved 3 September 2016,