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 pricing strategy where a high price is set initially for a product to take advantage of the early adopters who are willing to pay a premium price. This is often seen in the case of new and cutting-edge products like the iPhone. The price is then gradually lowered as the product becomes more widely adopted and competition increases.

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