“As Apple pushes deeper into luxury brand territory, the company is making its products more accessible through lower pricing,” Neil Cybart writes for Above Avalon. “At $159, Apple is underpricing AirPods. The same can be said for Apple Watch, priced at $269. In just ten years, we have moved from the ‘Apple Tax’ days, when Apple was accused of pricing products artificially high, to Apple products being priced below the competition. Apple is using its balance sheet and scale to grab new users, and in the process, redefine luxury.”
“After using AirPods for the past three months, one takeaway relates to pricing. It is clear that Apple is underpricing AirPods,” Cybart writes. “AirPods are not just any pair of headphones. The combination of accelerometers, optical sensors, Apple’s new W1 chip, and a well-designed charging case, position AirPods as Apple’s second wearables product. AirPods are computers for your ears.”
“It is very difficult to find a pair of wireless headphones priced lower than AirPods… Many wireless headphone companies have been forced to cut pricing in an attempt to better compete with AirPods. Even after price cuts, competitors are still unable to come close to AirPods pricing,” Cybart writes. “A similar pricing dynamic is found with Apple Watch… At $269, Apple Watch Series 1 is one of lowest-priced smartwatches worth buying in the marketplace.”
Cybart writes, “There are three theories to explain Apple’s AirPods and Apple Watch pricing strategy…”
Much more in the full article – highly recommended – here.
MacDailyNews Take: It’s very exciting to see Apple, in some cases, shoot for the entire market! Pity Apple’s would-be competitors in these markets. They don’t stand a chance.
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