The first Apple iPad was introduced in 2010 at an initial price of $650 for the 16 GB version. People waited in line overnight so they could be one of the first to own this unique tablet device. Which pricing strategy did Apple use to help recoup its costs for developing the iPad?
A)price lining
B)penetration pricing
C)skimming pricing
D)customary pricing
E)target pricing

Question

Quizplus · Accepted Answer

Apple used skimming pricing by setting a high initial price for the iPad to recoup the costs of developing the technology and then gradually lowering the price over time as competitors entered the market. This allowed Apple to maximize profits during the early adoption phase.

The First Apple IPad Was Introduced in 2010 at an Initial