Apple Is Losing Its Pricing Grips

(4/3/2014) Apple is knows for its pricing power. You rarely see Apple's products hugely discounted in the retailers. Most retailers have to follow Apple's pricing strategy and cannot give huge discount to consumers. The reason is to protect its long-term interest since slashing prices will decrease Apple products' prestigious images and eventually decrease Apple's profitability. To the retailers, breaching the rule means losing license to sell Apple's product.

However, a news analysis from Dealnews.com shows that Apple's grip on its pricing may get loose now. When retailers start slashing prices, there will be less consumers buying directly from Apple, which is an important revenue source for Apple. Their recommendation to the consumers is: don't buy directly from Apple. Shop around to get the best deal!