The Apple iPad was recently introduced 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 these unique pieces of electronics.Which pricing strategy did Apple use to help recoup its research and development costs for the iPad?
A)price lining
B)experience curve pricing
C)customary pricing
D)skimming pricing
E)target pricing

Question

Quizplus · Accepted Answer

Apple used skimming pricing strategy to recoup its research and development costs for the iPad. Skimming pricing refers to setting a high initial price to recover the cost of development and manufacturing, and then gradually lowering the price over time as competitors enter the market or the product reaches the end of its life cycle. By setting a high price for the iPad, Apple was able to generate a significant amount of revenue and recover some of the costs involved in developing the product. As the product matures and competitors introduce similar products, Apple may gradually lower the price to maintain market share.

The Apple IPad Was Recently Introduced at an Initial Price