The Apple company’s price strategy

The Apple company’s products always represent the high quality and high price. Therefore, the apple company products are more expensive than their competitors. For example, the price of iphone6s is 1229 dollars with the 64 GB storage in Australia, while the price of Samsung Galaxy S7 is 1148 dollars. However, the statistic data indicated that the iphone products’ market share had reached 18.7% in 2015 Q1 (Statista 2015). Why the high price can hold a large demand in the market? What is the Apple company price strategy adopting in the market? These questions are interesting for the marketers and their competitors.

Price strategy

The Apple company produces the high end productions. Accordingly, the productions have the relative high price in the market. The apple company utilizes the high price to deliver the high value for their customers. This is because the high price theory claims that the high price products cue to the high quality (Iacobucci 2014, p.113).

Segmentation price

Although the Apple company adopts the high end price strategy, it also provides the alterative productions for the consumers which have the different purchasing power. For example, some wealthy clients can purchase the last version of iphone, while other less wealthy consumers may order the previous generation iphone.



In addition, the apple company also provides the segmentation price in their productions. The segmentation price means that the company provides different productions with different price (Iacobucci 2014, p.119). This method may satisfy various customers’ needs and wants. The apple company creates their production with various prices. For example, Apple sells its iPhone6s at various price points. The iPhone6s is priced at $1,079 for the 16GB storage, $1,299 for 64GB, and $1,379 for the 128GB. If the client barely use the app and do not need a large storage, then the consumers may choose the 16GB one. Conversely, if the client frequent used the phone and requires plenty of app, then the customers may select the 128GB one.

Setting the price ending in 9

The Apple company utilizes the left-digit-effect to promotion their productions (Schreiber 2015). Due to the people reading behavior is from left to right, so the company can set their price ending in the 9. For example, the iPhone6 64GB types is sold by 1229$ in Australia. Comparing with the 1230$, the 1229$ productions may look like 1220$ for customers (Schreiber 2015). Thus, this strategy eliminates the resistance of the high prices for customers.

Psychological Pricing


The Apple company adopts the psychological pricing strategy to sell their high end productions (Schreiber 2015). The psychological pricing strategy claims that if some commodities are expensive, these goods must be good quality (Schreiber 2015). The apple company mainly focuses on the high end production with the high price (Schreiber 2015). In addition, the Apple company offer the number when it intended issue the new production (Schreiber 2015). It means the customers need to depend on the number to buy their commodity. Some customers may later get the offer number, but this situation stimulates the customers purchase.

In conclusion, the Apple company utilize the high price strategy to sell their productions. Moreover, the Apple company uses the segmentation price strategy to satisfy different customers’ needs and wants. Furthermore, the left-digit-effect may decrease some consequences in their high price. In addition, the psychological pricing strategy stimulates the customers purchase behavior.

WordPress user name: albert0506

Reference list

Iacobucci, D (2014)Marketing Management (MM4), South-Western, Cengage Learning, Mason.


Statista 2015, Apple iphone market share new smartphone sales worldwide from 2007 to 2015, by quarter, Statista, retrieved 27 April 2016,


Schreiber T 2015, Psychological Pricing Is Your Golden Ticket to Selling More¸Shopify, retrieved 28 April 2016,


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