How Apple Sets Prices
Posted January 15th, 2013 @ 08:20am by Erik J. Barzeski
This Macworld article was interesting, though long-time Apple folks knew most of it. In short: there's simply very little margin for discounting on Apple products.
The company supplements its tiny wholesale discounts to resellers with more substantial monetary incentives that are available only if those resellers advertise its products at or above a certain price, called the “minimum advertised price” (MAP). This arrangement enables retailers to make more money per sale, but it prevents them from offering customers significant discounts, resulting in the nearly homogeneous Apple pricing we are used to.
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