“Did Apple retail prices get too high in 2018? Consumers say yes.” – USA Today. View my Apple accessory picks.
A recent USA Today article highlighted Apple’s approach to product pricing. In my business strategy classes this year we talked a lot about Apple’s business model. The students know I’m a fan of Apple and their product pipeline. When the #iPhoneX released at a $1,000 price point, we debated it this was a good strategy on Apple’s behalf. I felt then that it was a good short-term move in terms of product profit margins, but I felt it would ultimately be a bad move in the long run. Moving already high-priced products into an even higher-end market might make Apple’s products appear more exclusive, but it is a move that alienates their mid-range consumer market they helped them become the tech behemoth they are. To no one’s surprise, prices were cut as sales slowed. I wonder what their holiday sales numbers will be in comparison to last year.