Steve Jobs sold over 1.3 billion iPhones with this pricing...
Brian O'Connor | Fractional CMO@BrianFOConnor
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Jun 14, 2026
~2 min read
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Steve Jobs sold over 1.3 billion iPhones with this pricing strategy:
Price Skimming.
Here's how to use it like Apple:
Price Skimming.
Here's how to use it like Apple:
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What is price skimming?
Price skimming is launching a product at a high price, then lowering the price over time
This strategy only works if your customer feels you have the best solution on the market
Then, reinforce this message with your high price
Price skimming is launching a product at a high price, then lowering the price over time
This strategy only works if your customer feels you have the best solution on the market
Then, reinforce this message with your high price
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Apple's messaging commands high prices
They start with why: their mission is to challenge the status quo
Customers are happy to pay a premium to be at the forefront of innovation
Simon Sinek on why messaging the vision first creates raving customers:
youtube.com/watch?v=TDi4hz…
They start with why: their mission is to challenge the status quo
Customers are happy to pay a premium to be at the forefront of innovation
Simon Sinek on why messaging the vision first creates raving customers:
youtube.com/watch?v=TDi4hz…
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Customers are willing to pay more to be part of the Apple ecosystem
iMessages are seamlessly connected across your Mac, iPhone and Apple Watch
Then a non-Apple user texts you
Apple warns you by making their text an ugly green and the message doesn't go to all your devices
iMessages are seamlessly connected across your Mac, iPhone and Apple Watch
Then a non-Apple user texts you
Apple warns you by making their text an ugly green and the message doesn't go to all your devices
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How Apple price skims:
They price high at launch, then offer lower-priced options over time
In 2007, the first iPhone launched at $499 (5x the price of typical phones)
Today, the iPhone SE is 15% cheaper than the original iPhone!
Here's a visual of their 3-tiered pricing:
They price high at launch, then offer lower-priced options over time
In 2007, the first iPhone launched at $499 (5x the price of typical phones)
Today, the iPhone SE is 15% cheaper than the original iPhone!
Here's a visual of their 3-tiered pricing:
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How you can price skim like Apple:
1) Position your product to be the best in the market for your target customer
2) Charge a high price to reinforce your premium position
3) Offer a lower-priced alternative over time, to expand into a more price-sensitive market
1) Position your product to be the best in the market for your target customer
2) Charge a high price to reinforce your premium position
3) Offer a lower-priced alternative over time, to expand into a more price-sensitive market
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TL;DR:
• Message like Apple
• Apple's Exclusivity
• Position for quality
• High-priced launch
• Lower priced options over time
• Message like Apple
• Apple's Exclusivity
• Position for quality
• High-priced launch
• Lower priced options over time
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That's a wrap!
Follow me for more on strategy and product positioning → @BrianFOConnor
Retweet the top tweet so others can enjoy it too!
Here's the link:
x.com/BrianFOConnor/…
Follow me for more on strategy and product positioning → @BrianFOConnor
Retweet the top tweet so others can enjoy it too!
Here's the link:
x.com/BrianFOConnor/…
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