Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers
How Apple Priced the iPhone to Own the Premium Market
In 2007, Apple launched the iPhone at $499 and $599—prices that seemed absurd for a phone. But the pricing wasn't about the hardware; it was a strategic move to own the premium tier and reshape the entire mobile industry. In this episode, Lucas and Luna dissect Apple's pricing playbook: how the original iPhone's price created a halo effect for the entire smartphone category, why Apple avoided the race to the bottom, and how the company has maintained pricing power for nearly two decades. They explore specific numbers: the $200 subsidy from AT&T that made the effective price…
The skinny
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