Pricing strategies of Apple Essay Example | Topics and Well Written Essays - 1500 words

Pricing strategies of Apple - Essay Example The price strategy for Apple majorly lies in the fact that they endeavour to sell great phones and products at a lower cost. It therefore offers a small number of products with a focus on the high-end market while giving priority to profits over the share of the market and creating a halo effect that makes people continuously attracted to its products. Apple ensures that when it is pricing its products, it adopts strategies that in relation to the market forces unlike the usual minimal pricing of products in the market place. Therefore, the prices are made in such a way that at times it is two times what its competitor’s charge, which it gets away with through strategies in how the product is implemented. The justification for the higher price of the products y Apple is the fact that it builds beautiful products that are attractive to the consumers and have features and benefits that the competing companies cannot match. Apple strives to create a demand for its products through differentiation, which entails having attractive and unique products to the consumers, and this enables it to have total control over the prices. Apple maintains a higher price for its products which keeps away its competitors in check helps it maintain its margins in terms of profitability (Spencer, 2013). Through the focus on customers that are likely to buy at the premium prices and maintaining it at that level, the company sets a level at which its competitors must also set its prices in the market. Apple therefore offers its products at premium prices by creating a premium product which is of high quality as indicated by the features in the products which translate to a lot of value for the price which helps shore up the profits. For instance, Apple raised the price of the latest iPad Mini by sticking on its high-end pricing strategy with the sole aim of maintaining the profit margins. The new