a picture of Tim Cook
His thinking was similar to Steve Jobs, his predecessor. The company’s conviction is to provide a distinct value proposition and to create an aspiring brand image. Apple continuously changed its price strategies to accomplish this. As a case study in marketing and price strategies, my business classes continued to be part of this firm. I choose to think about what led me to go from an ardent Nayman to an admitted fanboy (?). Apple still dominates the market, while the high pricing of its goods is still a subject of complaint.
Apple Price Study
On pricing, Apple never competes. Every business knows that a pricing war ultimately leads to an all-out race and affects the overall market. Apple is still following it and never changed its price strategy.
Instead, it focuses on its UVP, attractive design, and simplicity (unique value proposal). Apple doesn’t compete on the pricing. Customers pay more than a competitor’s other price. Apple does not, however, even regard others as competitive. It focuses on its value proposition and offers value to the product as a whole. This helps to increase pricing for Apple. Apple is like the technological goods Rolls-Royce. Its consumers are aware of the value and prepared to pay for their money. This produces a halo effect, and for many, it turns into an aspiring brand.
Price skimming is a technique used by luxury brands with pricing at very high rates and more enormous profits so that even the producer needs fewer sales to break down. It focuses on maximizing profits by charging early adopters a high price and progressively reducing costs to attract more prosperous customers.
They stimulate customers’ psyche with interest and anticipation before every generation of new items emerges. When the new product begins to be sold on the market, its exorbitant price keeps many people out. The introduction of Apple X cracked a smartphone pricing glass barrier (1.00,000 INR in India and 1000$ in the United States). However, its sales remain unchanged despite its comparatively high price. This, instead, installs Apple’s top-of-the-line image into the brains of consumers.
Only when its sales continue to operate well, and the market is not saturated does Apple begin to create the next generation of goods and lower the cost of existing items. As a result, the existing product is hot, and market coverage has reached a significant level before the latest product is ready. This will open up the new items to a larger market. If the latest product is released, its prices are much more than the previous generation, yet its sales are still strong. This is why the price approach of Apple can provide a positive outcome.