Apples pricing strategy Essay Example | Topics and Well Written Essays - 250 words

Apples pricing strategy - Essay Example However, after carefully analyzing this issue, it is safe to say that Apple should continue to price its products at a very high level for numerous reasons. One of the key reasons why Apple should continue to price its products high is due to the fact that Apple’s technology is ten years ahead of the technological curve. That enables Apple to not to avoid the pressure of competing with other firms when it comes to price since consumers are willing to allocate their funds to buy Apple products. For instance, the IPAD 2, should be priced at $500. Although other similar types of tablets that are produced by Dell or the Android are available at a lower price, it does not diminish the fact that the IPAD 2 obliterates the market with its functionality. No product in the market currently possessed two cameras, a dual-core chip, and is light-weight like the IPAD 2. Another reason why Apple should continue to price its products and services high is because of price elasticity. Price el asticity is defined as the response by the product when the price of the product is modified. If Apple was to drop the price of its new Iphone 4 from $599.99 to $399, it would be detrimental to the company itself since the demand will not drastically change, but Apple’s profit margin would be lower [1].