Latest / Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers
How Apple Priced the iPhone for Maximum Margin
In this episode of Pricing Power Podcast, Lucas and Luna break down Apple's century-defining pricing strategy for the iPhone. They trace how Apple avoided the commodity trap by pricing for margin share, not market share — from the original $499 iPhone in 2007 to today's $1,199 Pro Max. They unpack the psychology of the three-tier lineup (SE, regular, Pro), how Apple used storage tiers to extract $200 for $30 in NAND cost, and why the Pro models carry a 60% gross margin versus 45% for the base model. They also discuss how the Services arm — think App Store cut, iCloud, and AppleCare…
The skinny
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