Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers
How Apple Prices the iPhone for Maximum Profit
In this milestone 100th episode of Pricing Power, Lucas and Luna dive deep into Apple's iPhone pricing strategy — specifically how the company uses a 'good, better, best' tiering system to capture consumer surplus at every price point. They dissect Apple's cost structure, the role of storage and features as price differentiators, how the iPhone's average selling price has climbed above $900, and why competitors struggle to replicate the margins. Lucas brings the data: Apple captures roughly 85 percent of global smartphone profits despite shipping only 20 percent of…
The skinny
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