Behind Philip Morris International’s Smokeless Bet — WSJ | Fox Business

WSJ: At over $100 for the starter kit, IQOS isn’t cheap. Can you explain your pricing strategy?

MR. CALANTZOPOULOS: Innovation, in the minds of people, cannot be something extremely cheap. If you are an average person and you hear that something that is much better than cigarettes comes to the market at the cheapest possible price, you’ll not trust it. This is the reason we didn’t initially manufacture in China, because you need to create that credibility.

Over time you need to make the products available and affordable to different categories of people.

The big shift

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Behind Philip Morris International’s Smokeless Bet — WSJ | Fox Business.