Price Skimming Example: Apple
SANJEEV TIWARI, Business Consultant, India, Member
A good example of price skimming is the pricing practiced by Apple. When a new model is launched, it is priced fairly high in the initial period. The profit is made from customers who are price insensitive and/or more conscious of making a status statement. This adds to building the value of the brand of Apple, as people want to be in niche company.
Once this customer base is covered, the prices are lowered coinciding with the launch of new version. The lower price is intended to target the next customer base who are more price sensitive and aspire to also own an Apple iPhone/iPad/Macbook.