2 ms·
This article either misses the point or just got the wrong headline. The article is about the mechanics of how Apple maintains price discipline in the channel.
by reubenswartz 14y ago
This article either misses the point or just got the wrong headline. The article is about the mechanics of how Apple maintains price discipline in the channel. Apple sets its prices, and is able to maintain that channel discipline, because they understand that price is determined by perceived differential value.
They try to make things that people will find valuable. Since they have done a great job in a number of categories, they can set the price, and effectively dictate the terms to retailers. Other manufacturers use similar channel pricing mechanisms, but lack the clout to make them stick as well as Apple.