Apple’s (computer company) pricing strategy

Apply managerial economics’ pricing strategy concepts/tools to review Apple’s pricing strategies. See attached 4 questions (pdf). Thanks. Solution Preview
In the mid-to-late 1980s both Apple and other firms like Compaq and IBM were using high profit margin, premium-pricing strategies. In the 1990s most computer firms reversed this strategy by slashing prices and reducing margins, although Apple did so reluctantly and was a laggard.
In the past few years most PC makers have been offering PCs for under $1,000. While Apple had traditionally been “‘Apple priced’, rather than ‘affordably priced'”, their newest entry, the iMac series, while still slightly premium priced, is more affordable.

The same may be said of the iPod – slight premium, but affordable. Note that innovative differentiated products can support higher margins.
An initial target for Apple in the 1980s was a 50% gross margin, evidently across their entire product line. Apparently this 50% gross margin target was used in the early 1990s as well. Most times the true elasticity of demand is not known precisely, but by trial-and-error one can arrive at a good approximation of the elasticity of demand. Apple seemed to ignore completely the demand they faced in setting the 50% gross margin.

Don't use plagiarized sources. Get Your Custom Essay on
Apple’s (computer company) pricing strategy
From $8/Page
Order Essay

Comment on the price strategy used by Apple. Was the use of a 50% gross margin a good strategy? Is holding gross margins above 50% to pay for R & D a good idea? Should the two be tied together in any way? Was Apple “thinking strategically” when it set prices? “Strategic thinking is the art of outdoing an adversary, knowing that the adversary is trying to do the same to you.” Was Apple concerned about its adversary and/or aware of their strategies? Do lower margins mean lower profits? When are high margins justified? Were high margins ever justified for Apple? Were the strategic effects of Apple’s pricing strategy beneficial (rivals become less aggressive in pricing) or negative (rivals become more aggressive in pricing)?
Price: The price is what the customer pays. It includes direct and indirect costs as well as opportunity costs. (Hutchens, S. 1998). Pricing may impact the bottom-line and top line in a significant manner. Hence a higher or lower price can dramatically change both margins and sales volume. The various factors which will affect the company’s pricing policy are the costs, competitors, positioning, strategy, government

To continue with the answer check on topwriters4me.com/

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 20% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Top Writers 4Me
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 10k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Nursing
Good job! Thank you
Customer 452487, October 17th, 2021
Microbiology
Perfect! Thank you guys for all of your great help! :)
Customer 452483, August 23rd, 2021
Sociology
Perfect! Appreciate all of your help! Thank you so much!
Customer 452483, November 14th, 2021
Education
Thank you for your help
Customer 452555, February 16th, 2022
Psychology
On point! Appreciate all the hard work!!
Customer 452483, August 16th, 2021
Nursing
Excellent. Thank you.
Customer 452487, August 26th, 2021
Healthcare Writing & Communications
Excellent!! You’re awesome, thank you very much for all of your hard work & help!!
Customer 452483, October 24th, 2021
Microbiology
Appreciate all of your hard work! Thank you so much!!
Customer 452483, September 14th, 2021
Mathematics
PERFECT! Thanks a million, you're all awesome!!!!
Customer 452483, July 7th, 2021
Mathematics
Job WELL DONE! Thank You very much!!
Customer 452483, July 12th, 2021
Psychology
Thank you so much for all of your hard work, appreciate every bit of it!
Customer 452483, September 6th, 2021
Microbiology
Thank you so much! I appreciate what you do and all of the great help you've given me!
Customer 452483, September 6th, 2021
1159
Customer reviews in total
96%
Current satisfaction rate
2 pages
Average paper length
47%
Customers referred by a friend
OUR GIFT TO YOU
20% OFF your first order
Use a coupon 24/7HELP and enjoy expert help with any task at the most affordable price.
Claim my 20% OFF Order in Chat
Open chat
Chat with us Live Here
Get in Touch with Our Live Chat Agents via WhatsApp on +1(346) 416-0954. Get Unlimited Access to Answers on Any Queries With Your Paper.