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Clickology by Graham Jones

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4IT’S ALL ABOUT PRICES

When Apple launched its revolutionary iPad at a price of $499, people were quick to speculate about how much it actually cost to make. They were curious about the level of profit the company was achieving. Manufacturing analysts were able to calculate that the total cost to Apple was around $260. Furthermore, the iPad that incorporated 3G mobile capability would have set you back a further $100, while the analysts claimed that the extra cost to Apple was a mere $16. Even though the price that consumers were charged for either iPad was substantially higher than the actual costs, Apple makes massive profits, and it does not offer discounts, people were still prepared to queue for hours to get the product. Price does not matter ...

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