3 ms·

Couldn't they also invest some of their massive cash reserves into production and R&D?

• dmix 9y ago
  Yes but I don't see how that would affect their pricing strategy? Cash reserves make it easier for them to make a riskier play into the luxury market. But in the long-run the reserve is only a temporary fallback not a sustainable model. Pushing the price up makes it easier to play with the price margins and add more expensive parts. It could also be fueled by the output of their R&D but they could also see the value proposition they offer as justifying a higher price from entirely non-functional aspects (ie non-software/hardware innovation), just merely the emotional draw of the product via design and branding. The measure is whether people still want the product as much rather than whether it does x & y better than the competitors. People tend to discount the utility of emotional appeal and the connection people have to the products they use daily. Instead focusing on CPU speeds or raw feature comparisons.