Apple’s pricing strategy is ultimately about bringing new users into the Apple ecosystem. While the iPhone remains the most effective tool for accomplishing this, Apple wearables will increasingly represent another new user tool at management’s disposal. It may be difficult to believe, but AirPods likely represent the first Apple product for more than a few people. Additional value will flow to companies selling multiple wearables products to the same user. As it currently stands, the average Apple user owns more than one Apple product. This trend will only intensify as time goes on when considering Apple Watch and AirPods.
The trickiest aspect of Apple’s pricing strategy is running with lower prices while at the same time, becoming more of a luxury brand. In essence, Apple is redefining luxury. While other luxury brands have utilized lower-priced items to serve as brand entry points, Apple is taking the practice to an entirely new level by pricing products below the competition. Apple is making luxury much more accessible with the idea that low-priced gadgets can create an experience just as luxurious as that of premium gadgets. It’s going to be difficult for other consumer tech companies to play in this game.
Today, Apple’s personal computers are not only more expensive than any time in the last 10 years but they are so horribly out of line with the rest of the PC industry. The average notebook sells for less than $300. Apple’s note books start at $1,000 and can be configured to $4,000.
The iPhone and its accessories are very well priced. Their computers are still unattainable for most people to afford.