When Apple introduced its iPhone,it was priced at $599.This allowed Apple to earn the maximum amount of revenue from the various segments of the market.Two months after the introduction,the price has come down to $399.What kind of pricing did Apple adopt?
A)loss-leader pricing
B)market-penetration pricing
C)market-skimming pricing
D)target-return pricing
E)value pricing

Question

Quizplus · Accepted Answer

Apple initially used market-skimming pricing by pricing the iPhone at $599 to earn maximum revenue from early adopters and customers willing to pay a premium for a new, innovative product. However, the price was later reduced to $399 to penetrate the mass market and appeal to a wider range of customers. This shift indicates a move towards market-penetration pricing.

When Apple Introduced Its IPhone,it Was Priced at $599