Apple iPhone was introduced at an initial price of $600.People waited in line overnight so they could be one of the first to own this unique smartphone.Which pricing strategy did Apple use to help recoup its research and development costs for the smartphone?

Question

Quizplus · Accepted Answer

Skimming pricing is a pricing strategy that involves setting a high initial price for a new product to recoup the costs of research and development, and then gradually lowering the price over time as the product becomes more established in the market. This is the strategy that Apple used when they introduced the iPhone at an initial price of $600, which was considered very high at the time. By setting such a high price, Apple was able to recoup its research and development costs quickly, and then gradually lowered the price of the iPhone over time as it became more popular and established in the market.

Apple IPhone Was Introduced at an Initial Price of $600