The first Apple iPhone was introduced in 2007 at an initial price of $600. People waited in line overnight so they could be one of the first to own this unique smartphone. Which pricing strategy did Apple use to help recoup its costs for developing the smartphone?
A) penetration pricing
B) experience-curve pricing
C) customary pricing
D) skimming pricing
E) target pricing

Question

Quizplus · Accepted Answer

Apple used skimming pricing, which involves setting a high initial price to maximize profits from early adopters who are willing to pay more, before gradually lowering the price.

The First Apple IPhone Was Introduced in 2007 at an Initial