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You got it. It's a strategy employed by the automobile industry as well: high-end loss leaders that "signal the brand" and cultivate loyalty among enthusiasts.
by spamizbad 10y ago
You got it. It's a strategy employed by the automobile industry as well: high-end loss leaders that "signal the brand" and cultivate loyalty among enthusiasts.
Apple's claim is staked on high-margin products, so it needs an elite cachet much more than say... Xiaomi or Dell. And you can signal that to consumers with one-of-a-kind high-end products that operate on the absolute cutting-edge of various creative, technical, and scientific niches.
- blumentopf 10y agoPorsche for instance isn't earning any money with their LMP1 race cars. They need them to sustain the illusion that they're a sports car company, despite the majority of their sales being SUVs (Cayenne, Macan) and sedans (Panamera).