Discussion on the Pricing Component

When firms market their products, they create a successful mix that entails the right products, price, place and promotion (Lamb, Hair, & McDaniel, 2012). The current article that I have chosen is titled, “Apple’s Pricing Policy Moves from Skim to Penetration.” The purpose of this article is to give us an insight into the price as a marketing mix and how Apple used to charge high prices for its elegant hardware. However, that is no longer the case since the company now offer lower prices for its older products (Cannon, & Perreault, n.d). In this article, Apple uses the following pricing concepts to withstand the competitive nature of the market. First, the company used product lifecycle based pricing. It entails offering different prices for a product at different stages of its lifecycle. Under product life cycle based pricing, the company particularly used price skimming and offered high prices for its products on a smaller market and later move to a price-sensitive clients.  Second, the firm is now using competition based pricing concept. Apple has employed penetration pricing to try and sell its products to the whole market at low price.

As a professional, the information about skim pricing and penetration pricing has the following impact on the market. At first, Apple used skim pricing policy on its products to earn super margins on the sale of its elegant hardware. Since the prices were high, not all consumers could afford the products from Apple. Therefore, the company switched its pricing policy to penetration. Apple charges low prices for its products to enter the market and attract more customers (Cannon, & Perreault, n.d). This policy will prevent other firms from competing with Apple. On the consumer’s perspective, their buying decision will change. The consumers’ perceptions drive their behaviors. They will change the negative perceptions they had on Apple’s pricing policy and hence they will view it as the lowest price store.

Personally, the company has changed my perception of their products and prices when they decided to change their price policy from skim to penetration. Since they offer low prices for older products, I am now in good position to buy one of Apple’s products since they are affordable. Similarly, I can also have the courage to recommend my friends to buy Apple’s products.


Cannon, J., & Perreault, W. (n.d). Learn the 4 Ps. Retrieved from http://www.learnthe4ps.com/category/price/

Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2012). Essentials of marketing. Mason, Ohio: South-Western Cengage Learning.