According to bloomberg’s news, Apple became the first U.S. company with a market value of more $800 billion and this amount is expecting to increase since the next iPhone is about to come. In the past years, people could not image how technology companies can play a role in the center of the global business world, and obviously Apple’s rise as one of the top company around the world marked the emergence of the technology.
Tim Cook, as the current CEO of Apple, stated that apple never had an objective to sell a low-cost phone and the primary objective of Apple is to sell a great phone and provide a great experience. Apple’s skimming pricing strategy allowed apple to increase their profit as selling a high price. Although this skinny pricing strategy made apple sacrifice their sales for these low-budget customers, the large profit helped Apple to invest more into the new products.
The premium pricing strategy also helped Apple to build and maintain a loyal customer group. These customers normally believe they pay a high price for Apple because they receive a exceptional product with the best quality.
To conclude, it is not easy for apple to stick with the premium pricing strategy since sometimes customers would choose a lower cost phone due to the budget. However, Apple’s exception design and quality still helped Apple to be the one and only technology company all over the world.