Explained in plain English
Why do brands do it?
Brands often price products like the rumoured iPhone Ultra very high to create a perception of exclusivity and superior quality. This strategy, known as 'premiumisation', allows them to target affluent customers who are willing to pay more for prestige and advanced features, boosting profit margins significantly even if sales volumes are lower.
Stories that explain this
Apple's next iPhone may cost more than a MacBookQuestions this opens up
Do higher prices mean better quality? How do brands build prestige? What's 'luxury tax'?This explainer came from a news story
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