The Apple is known to be the most innovative company of the world they have brought many marvelous innovations in the field of IT and telecommunication. The company profile is very good and since its start company is growing rapidly and it never fails to fulfill their promises. The company major is to introduce the telecommunication products which are both unique in style and contain innovation so in order to deliver this kind of epic performance company has to get the massive revenue also. So, for that purpose company price is much higher than the other telecommunication companies such as Samsung and Sony.
The reason why the management of Apple thinks that they should keep their prices higher than because their company is considered to be whole different kind than the Samsung and in front of people the image of Apple is like the empire which stands totally independently that’s why they are unique in their style.
Apple never compromises on the quality of their product with the launch of every new product they bring some innovation in the market a kind of innovation that helps the common people.
Recently Apple Inc. has launched the Iphone-7 which is unique in its style and for the first time in the history of telecommunication they have introduced a wireless headphone which shows that level of their innovation.
This was never done before no other company bring the kind of innovation like Apple do so they have the right to keep their product prices high beside it is not affecting the sale of their product and instead giving them the handsome revenue so why should they compromise on the prices. Compromises are usually done where the competition is present here there is no competitor of Apple on basis of innovation.
There are some other reasons why the Apple can’t lower their product prices now one of them is that the company is currently serving worldwide and its employees are also all around the world so, in order to keep this all working they need a massive budget which can only be filled if the revenue generation is more than the budget required to operate this whole big manufacturing machine.
If they low their price even few dollars just imagine how much millions of dollars they will be losing each year just because of minor changes in the prices which means, there will be extra pressure on the employees and management of the company. That’s why through the point of profit they can’t do this beside they are the kind of company who work on this moto “If you are good at something than don’t do that thing cheaply”.
The other reason is their reputation in the market because lowering the price may cause the bad impact of company in front of the public because the reality of people mindset is that they think if something is cheap then its quality is not good and if something is expensive then its quality is definitely good.
That’s why if Apple starts reducing their product prices then the company can suffer from this mind set of public and customer loyalty will become issue so they have to avoid this kind of situations.