4 ms·
Is this something that Apple can address with more competitive pricing in China?
by Aelinsaar 11y ago
Is this something that Apple can address with more competitive pricing in China?
- HappyTypist 11y agoMore competitive pricing in any region would mean lower pricing everywhere in the world. Apples products are extremely fungible.
- scholia 11y agoMore competitive pricing would reduce margins. Apple has chosen to pursue high margins and high profits rather than market share. That's how it accumulated roughly $200 billion in cash.
- Aelinsaar 11y agoExactly. Does that leave them with the flexibility to fundamentally change their business model to narrower margins?
- scholia 11y agoIn theory, yes, but Apple sells premium products at premium prices and many people actually like paying more. There's inevitably a show-off element to it, but I think there's psychological research to show that people appreciate products more when they pay more for them. (But I can't find any evidence from a quick google....)
- mtw 11y agoChinese are known to travel and buy iPhones in packs (6, 8, 10 at a time). They will buy it from where it's cheapest