Sunday March 19, 2017

AirPods and Apple Watch "Underpriced" to Bring New Users into Apple Ecosystem

Analysts are claiming that the fruit company has intentionally dropped the brand tax on some of its newer products in an effort to tempt more buyers. An example would be their wireless AirPods, which retail for $159آ—a supposed bargain compared to competitors’ offerings, which are priced as high as $300. Wait a second, can’t you get Bluetooth headphones for like, $20?

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Apple is underpricing AirPods and the Apple Watch in an effort to bring new users into its ecosystem, according to Neil Cybart of Above Avalon. The analyst said this pricing strategy was "unimaginable" ten years ago, when Apple was often accused of pricing products artificially high, aka "Apple Tax." Cybart believes a strong case could have been made for Apple to price its AirPods at $249, or even $299, but by selling them for $159, he thinks Apple has "removed all available oxygen from the wireless headphone space" and forced competitors to cut pricing in an attempt to better compete.