Apple's iPhone was originally a single model in a product line targeted at high-end users. However, lower-cost rival smartphones soon entered the market and Apple began to market multiple offerings itself. Here, Apple faces
A) the inability to change prices quickly.
B) speeding up the diffusion of innovation process.
C) brand extension confusion.
D) charging a lower price to gain a foothold in the market.
E) the challenge of pricing multiple products in an expanding product line.

Question

Quizplus · Accepted Answer

Apple faces the challenge of pricing multiple products in an expanding product line as it introduces various models to cater to different market segments and compete with lower-cost rivals.

Apple's IPhone Was Originally a Single Model in a Product