When Apple first introduced its iPhone in the U.S. market, it priced it at $600. Several months later, Apple reduced the price to $400. And several months after that, it reduced the price again to $200. What pricing policy was Apple using in its initial price strategy?
A) Introductory price
B) Skimming price
C) Cash discount price
D) Penetration price
E) Everyday low price

Question

Quizplus · Accepted Answer

Apple used a skimming price strategy by initially pricing the iPhone at a high price point of $600 to appeal to early adopters and generate high profits. Then, it gradually reduced the price to reach a wider market and increase sales volume over time.

When Apple First Introduced Its IPhone in the U