I’m a little confused with Apple’s pricing strategy.
Okay, so I’m no business major, but it seems to me that there’s a few things Apple has been doing that’s hindered their profits. Maybe you guys can offer some insight.
Obviously Apple has positioned itself as a “premium” category. Generally their quality and OS has been “polished” and so well “integrated”, that the price tag was generally acceptable. But with these price hikes, it seems like they’ve shot themselves in the foot.
Why do they price their products so high? A good example is the new MB Air, clocking in at $1199. It’s a decent computer, but it would have KILLED at $899/999. I understand they have incredibly high profit margins, but this pricing seems like it’s isolating their fan base and making it hard to join the ecosystem. Wouldn’t they make up the profit margin loss, plus some, AND gain and attract new users if they priced their products even slightly more moderately? The Xr would have been a great sell at $599, the Xs at $799, and the Max at $899. Last year’s X was $1000, and it was moderately understandable. Brand new, expensive and intensively researcher and tested tech that is incredibly smart. New materials and screen type and the “folding” OLED panel that brought the price up. But this is year two. Why aren’t the prices lowering, as this “new” tech becomes polished rather than researched and built? I feel like again, lowering the prices would be made up for with the mass appeal and attraction of new customers/people’s general desire to upgrade with reasonable prices.
Anyone have any thoughts?