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The pricing strategy for the Apple Watch is insanely smart | Business Insider

How do you price a new type of smart watch at $600 (£410), or more, when the market price is below $300 (£205)? That’s the problem Apple faced when the time came to devise a pricing strategy for the Apple Watch.

The following chart shows that Apple has successfully managed to maintain the average selling price (ASP) of the iPhone – the company’s most valuable product – at above the $600 (£410) level for the last six years. The reason why the average selling price (ASP) of the iPad had dropped is due to the introduction of the iPad mini, and the introduction of lower-price iPod models also explains why the ASP of the iPod has dropped over time.

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Price of Apple Watch is insanely smart.

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