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Pricing a product is always a very hard thing. I speak from experience working at a startup and trying to understand what price the market will bear. The beaut
by anonu 6y ago
Pricing a product is always a very hard thing. I speak from experience working at a startup and trying to understand what price the market will bear.
The beauty with Apple is they build beautiful products that people covet. They effectively create a new market and force people to re-assess what they would pay for XYZ feature. I am sure the average user would never dream of spending $500+ for a pair of headphones yesterday. Now the landscape is all different.
Its the same for the iPhone. Why do these things costs $1000? I can get most of the same features in just as nice a package with many Android phones. But still iPhone is the dominant winner in the US market.
- lotsofpulp 6y agoBrand new iPhone SE is $400. Entry level iPhones have never cost more than ~$650. The entry level specs are good enough for 80% of people’s needs, and an extra $100 or $200 probably satisfies 95% of people’s needs. I don’t see the purpose of the “$1k iPhone” meme when it’s blatantly false, and competing Android phones have also always cost around the same amount. And what’s also been blatantly true is the amortized cost of an iPhone over its longer lifespan versus competing products has always been lower.
- rafram 6y agoThe iPhone 8/X generation turned a lot of people off because of its totally unaffordable pricing. The 8, which took the entry-level spot but was essentially a previous-model phone, cost $700, and the X was $1k. They’ve made this mistake before. The only possible saving grace that I can see is that it’s an image strategy: price a product very high in the first generation to build an “exclusive” image, then lower its price over time to increase sales.