I have a feeling that not many PR firms will release news on June 29. No doubt, the focus will be on Apple (NASDAQ: AAPL)'s eagerly awaited iPhone.
Of course, the buzz is already intense.
But what about the price? Is Apple asking too much?
I had a chance to interview Rafi Mohammed, an expert on pricing. He runs a consulting firm, Culture of Profit, and is the author of the book The Art of Pricing.
What's your take on the pricing strategy?
Apple did a great job of setting prices.
What about Apple's future pricing strategy?
This is where it gets interesting Tom. Most new technology products start prices high and lower them. This is what Apple did for the iPod by the way. I think Apple made pricing missteps with the iPod: They discounted it too quickly and heavily -- and brought out the Nano (very stylish and well reviewed) at too low of a price. Apple definitely left money on the table with the iPod.
What's interesting about the iPhone is that it has little real competition on the horizon and the tremendous buzz is only making its value higher. Even with reported gross margins of 50%, which makes it tempting to discount, I'd advise Apple to moderate its discounting and consider setting higher prices when it rolls out models with new features.
Would you buy an iPhone?
Tom, I'm a really thrifty customer -- it took me years to trade in my cassette Walkman for an iPod. But even I want to purchase an iPhone at its release!
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.