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The Real Reason Why Apple Is Releasing Different Models
- Thread starter donster28
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I don't think anyone of us can pinpoint Apple's entire Watch strategy to one theory, but there is definitely reasoning and understanding behind the various appeal created by offering multiple price points.
Here's another good example: http://markdmill.com/2015/04/01/the-apple-watch-china-edition/
tl;dr - China is a huge market for Apple. Expensive watches are seen as a sign of corruption in China. Apple created 'Edition' so that the 'standard' Apple Watch is not the most expensive, so can sell like hot cakes without the fear of association with corruption.
Here's another good example: http://markdmill.com/2015/04/01/the-apple-watch-china-edition/
tl;dr - China is a huge market for Apple. Expensive watches are seen as a sign of corruption in China. Apple created 'Edition' so that the 'standard' Apple Watch is not the most expensive, so can sell like hot cakes without the fear of association with corruption.
iPhones and iPads have been good enough for everybody.
Certainly, some folks would bling them up but a president or somebody who could barely afford it got the same impeccable quality.
Consider the Android devices OEMed by various manufacturers and even worse the Window CE/Mobile.. you start to compete on the presentation of the device and the quality as intended vs the manufacturers concern over a profit beyond getting the initial sale... sadly many are poor quality.
The watch is something different.
If Apple had offered a $100 watch then a lot of people would buy it but it would not have been pervasive.
If Apple had only offered a $300 watch... the same.
If Apple had only offered a $10,000 watch.. well.
There's a price point to match desire and exclusivity as a starting point but I can guarantee that some will want the platinum or custom versions as they did with the iPhone.
On this point I think Apple did fairly well adjusting to the market, it's too hard to set and standardise here even if the quality of their Aluminium is beyond par.
Certainly, some folks would bling them up but a president or somebody who could barely afford it got the same impeccable quality.
Consider the Android devices OEMed by various manufacturers and even worse the Window CE/Mobile.. you start to compete on the presentation of the device and the quality as intended vs the manufacturers concern over a profit beyond getting the initial sale... sadly many are poor quality.
The watch is something different.
If Apple had offered a $100 watch then a lot of people would buy it but it would not have been pervasive.
If Apple had only offered a $300 watch... the same.
If Apple had only offered a $10,000 watch.. well.
There's a price point to match desire and exclusivity as a starting point but I can guarantee that some will want the platinum or custom versions as they did with the iPhone.
On this point I think Apple did fairly well adjusting to the market, it's too hard to set and standardise here even if the quality of their Aluminium is beyond par.
Standard "good, better, best" pricing psychology. The high priced model make people who can afford the lower priced models feel like they are getting a better deal. Thus more sales. The low priced models make the people who can afford the top product to feel like they are getting something more special and differentiated. Thus more sales.
Same with grocery store products. Take 3 nearly identical products on the shelves and price them low, medium and high, instead of the same, and total revenue goes up. People buy more just because someone played with the numbers and used the research results.
Same with grocery store products. Take 3 nearly identical products on the shelves and price them low, medium and high, instead of the same, and total revenue goes up. People buy more just because someone played with the numbers and used the research results.