OnDemand WTP Pricing Research

Here’s the Secret Behind Apple’s iPhone Release Strategy | The Motley Fool

Apple (NASDAQ:AAPL) is just as much a marketing company as it is a tech company. Sure, the latest iPhones, iMacs, and Apple Watches all need to be technically sound, even advanced. Still, Apple has never needed to be a first mover on most technological innovations. Rather, the company has often taken the latest technology and perfected it under the powerful Apple brand. Elevating technology to the level of a luxury item was the real genius of Steve Jobs, not any particular invention.

Marketing savvy isn’t just about commercials. How one sells something (the Apple store) is important, too. Pricing strategy is hugely important — especially for investors.

This is especially true when one is selling a “prestige” product like the iPhone. Apple has always positioned itself in the high-end segment of the smartphone market, but in recent years, it has given consumers more choices. Last year, the company released two different models for the first time, the iPhone 8 and iPhone X. This year, the company is at it again, releasing the iPhone XS and XS Max, along with the lower-priced iPhone XR.

The XS and XS Max feature a superior OLED screen and “breakthrough” dual-camera system (Apple’s words), starting at $1,000 to $1,100, while the XR has an LCD screen (though one bigger than the regular XS) and a single camera, starting at $750. While the XR has a lower price point, it actually has one superior feature: battery life.

Read complete article here:

Here’s the Secret Behind Apple’s iPhone Release Strategy.