Learn from Apple Mistake on Pricing, Avoid Own-Goals
Quote from Ndubuisi Ekekwe on January 10, 2019, 11:19 AMThere is now a global consensus that Apple scored an own-goal when it jacked up prices of iPhone. As you price your product, have a balance. You want those customers to return next time.
Concerns about friction between the U.S and China cast a pall over Apple too last week as CEO Tim Cook blamed a sluggish Chinese economy and “rising trade tensions with the United States” for a sharp downward revision in the company’s first quarter profit estimate. But Cook’s assertion drew immediate criticism from analysts and customers in China who argued that Apple’s real problem is that its new phones are overpriced and haven’t kept pace with the innovations offered by domestic competitors. Many have noted that Apple has lagged Chinese rivals like Huawei, Xiaomi, Oppo, and Vivo in rolling out high-performance cameras, dual SIM card capability, and other features.(Fortune newsletter)
There is now a global consensus that Apple scored an own-goal when it jacked up prices of iPhone. As you price your product, have a balance. You want those customers to return next time.
Concerns about friction between the U.S and China cast a pall over Apple too last week as CEO Tim Cook blamed a sluggish Chinese economy and “rising trade tensions with the United States” for a sharp downward revision in the company’s first quarter profit estimate. But Cook’s assertion drew immediate criticism from analysts and customers in China who argued that Apple’s real problem is that its new phones are overpriced and haven’t kept pace with the innovations offered by domestic competitors. Many have noted that Apple has lagged Chinese rivals like Huawei, Xiaomi, Oppo, and Vivo in rolling out high-performance cameras, dual SIM card capability, and other features.(Fortune newsletter)