Apple’s ability to produce desirable products leads their
marketing personnel to establish the price.
The marketers’ choice to promote the newest technology with cutting edge
Retina display, voice command, and the simplest interface for a phone, as an
ever sought after product has proven that Apple is on the top in the technology
industry.
With all of this new technology hitting the market almost
every three or four months leads people to wondering, “How does Apple not go
under?” This question can be answered in
one simple line, price skimming. Price
skimming happens when a company charges the highest possible price that buyers,
who desire the product the most, will pay.
Although, here in Montana we do not get so lucky on seeing
the newest and greatest technology the moment it hits the markets, we do
however are able to see it come through later.
Over the past few years when Apple has released a new product, large
newspaper journalists always interview the “die hard” individuals who stand in
line for 48hours just to buy the latest Apple product.
To me this seems stupid.
How can someone stand in line for a period of time, just so they can buy
a product? Not to mention, most of the
time, the individuals in line are using the previous generation of Apple’s
product. This was seen when Apple
introduced the iPad 3. Time’s Techland Division
released an article titled “8 Ways to Survive Apple’s new iPad Launch (If you’re
Standing in Line). This list outlined:
1. Get there early, 2. Don’t try to be first in line, 3. Bring something to do,
4. Hydrate, and the list goes on.
Apple’s marketing team understands that people are willing
to stand in line for a few days on end, just so they can get the new
product. With that, they have been able
to set the price of their new product to whatever they would like. My question is, how do they decide this? Is it based on company surveys that go around
to the customer’s asking them how much would you spend? Or do they just know
from releasing countless new products to the consumer?
