This is pure self-selecting pricing: it's neither new nor restricted to Apple. The premise is simple: your market is divided into a very large spectrum of spen

This is pure self-selecting pricing: it's neither new nor restricted to Apple. The premise is simple: your market is divided into a very large spectrum of spending ability. So the most efficient way to charge each customer the best possible price is to simply let them select it themselves. For obvious reasons, you cannot sell the same product at each price, so some improvement is necessary at each upgrade. Quite often the upgrade is a token one, but sometimes people do need the extra features offered. I see this all the time at restaurants, car dealerships, insurance companies and pretty much any other time someone is trying to sell me something.