| The crowd at the unveiling of Apple’s Vision Pro headset audibly groaned when they found out how wildly expensive it was: $3,499. But setting the price so high is actually really smart.
Insider’s Nicholas Carlson texted with Matthew Ball, an investor in the metaverse world and an advisor to a bunch of companies, who told him that Apple’s taking a “Tesla approach — start with the Model S, eventually get to the Model 3, and then keep lowering its price while improving its performance.”
This strategy is called “price skimming,” where a company sets the initial price of a product very high, then gradually lowers it over time. Apple knows that early adopters are likely to pay, it’ll keep profits high, and it’s good for the brand.
Plus, Apple has never had much issue with charging more for its devices than competitors. After all, when the first iPhone was announced in 2007, it cost $499 for the basic 4GB model — and you could get a good Blackberry for $200 at the time. |
