When Apple launches a new iPhone version,the non-subsidized price (as in the price if you buy direct,without a three-year contract),is often $799 or $899,while older versions decrease in price.This initial high price is referred to as:

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Skimming pricing is a strategy where a company sets a high price for a new product in the market. This strategy is commonly used for innovative products with unique features, like new iPhone versions. The high price allows the company to recover its investment quickly and maximize profits before competitors enter the market with similar products. As the market saturates and competitors offer similar products, the company may reduce the price, which is what happens with older iPhone versions. Cost-plus pricing, ROI pricing, and market-oriented pricing are other pricing strategies that do not apply to this scenario as they are based on different factors.

When Apple Launches a New IPhone Version,the Non-Subsidized Price (As