Apple's iPhone was originally a single model in a product line targeted at high-end users.However,lower-cost rival smartphones,many of which were powered by Google's Android operating system,soon entered the market.In dealing with competitive offerings,Apple faces
A)the inability to change prices quickly.
B)speeding up the diffusion of innovation process.
C)brand extension confusion.
D)charging a lower price to gain a foothold in the market.
E)the challenge of pricing multiple products in an expanding product line.

Question

Quizplus · Accepted Answer

In late 2017,Apple unveiled three phones at once and had to price them relative to each other and the existing iPhone 7 that they replaced.Apple priced its new iPhone X model at $999,its iPhone 8 model at $699,and the iPhone 8 Plus model at $799.  Industry analysts called the launch of three products at the same time "threading the needle" because Apple had to simultaneously consider the product cost and each phone's perceived value from a functionality point of view and get the pricing right.

Apple's IPhone Was Originally a Single Model in a Product