When Apple introduced its iPhone, it was priced at $599. This allowed Apple to earn the maximum amount of revenue from the various segments of the market. Two months after the introduction, the price has come down to $399. What kind of a pricing did Apple adopt?
A) loss-leader pricing
B) market-penetration pricing
C) market-skimming pricing
D) target-return pricing
E) value pricing

Question

Quizplus · Accepted Answer

Apple adopted market-skimming pricing, which involves charging a high price for a new product before lowering the price to reach a wider market. This strategy allows a company to earn maximum revenue from early adopters willing to pay a premium price and later capture more price-sensitive consumers by reducing the price.

When Apple Introduced Its IPhone, It Was Priced at $599