Sunday, November 8, 2009

Apple's Pricing Concept-- Post 1 & 2

Post 1:
When it comes to pricing, Apple tries not to be competitive but they thinks more ahead of the product and its affect that pricing might have in the future. Apple doesn't try to compete with PCs directly on price for several reasons. Some of these reasons include that cut throat pricing leads to diminished profits and loss of shareholder value, it diminishes the hard won reputation of the Apple brand. Also, it's too early for Apple to jump on price decreases before it fully understands the impact of its future quarter sales.

Post 2:
Apple will never price their product downward, even in a down market. The reasons for this is to maintain a premium brand with premium price points, to maintain their margins, and to take in the maximum amount of revenue and profit from their target demographic. Apple will be able to maximize revenue and profit with their consistently high price points during this season. In the long term, this may be the right strategy. Apple believes that once their prices go downward, and it will be difficult to raise the price.

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