Monday, September 3, 2012

Apple's Pricing Strategy

On Seeking Alpha, The Jaded Consumer has a new article – an Editor's Pick – called Apple: Pricing Policy, Pricing Power, and Profit. The article lays out the case that average sales price (ASP) declines don't prove Apple's goose is cooked, they prove Apple meant what it said about thinking about corporate profits above per-unit sales.

Feel free to comment, and let the world know what's right (and wrong!) with the thesis.

The article was inspired by some "Sell Now!" arguments I'd seen. I wanted to make clear that the reason to sell – if any – was not Apple's ASP decline.

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