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Pricing Strategy of Apple

Apple iPad

What is Apple's overall pricing strategy? (Given Apple's positioning and targeting strategy for the iPad what pricing strategies make the most sense? Why?)

Discuss the role of discounts in Apple's strategy. What would you advise the company that owns your product in terms of discounts and specials?

Solution Preview

Apple's overall pricing strategy, for the iPad, as well as for its other products is based on a premium pricing practice, in which products are priced at a high level in part to convey the quality technologically superior perception of the brand and products. This helps to give Apple products a distinct quality, upscale image. The company is able to utilize this strategy since it often is the first to market with revolutionary products, that are unique and in high demand. Some might term this as captive product pricing, in that Apple is able to charge a higher price initially because it does not have competitors that offer the same streamline design or enhanced ability. This might be true in the case of the original iPad; however, with the introduction of the iPad Mini many ...

Solution Summary

This detailed solution discusses Apple's overall pricing strategy, the role of discounts, and what advice you would give to Apple in terms of specials and discounts. Also discusses Apple's positioning and targeting strategy for the iPad. Gives examples and has APA formatted references.