[mzltest]

In my view, Apple trademark has great goodwill which they can use for overpricing their products. Some people won't buy cheap quality product or service. Apple is focusing these customers who think the more price the more quality product. If you are selling something in a cheap price the demand will get reduced after a while, you can't get high profit to make expenses in the future. While they take this high profit they can provide better service. There will be a policy strategy and plan for fixing the product price. Business is something which we need to learn customers' psychology. Overpriced items get much attraction.

I personally do not totally agree your opinion. Seems many customers of Apple are already used to Apple's ecosystem or at least have a positive assumption of it.They won't get too much sales than usual for extreme overpricing,'cause those who are not interested in its ecosystem won't have too much curiosity on it's product too.

Cheaper things can maintain demand as there are always some people who would like to try them,and these companies announce new products every year or so and then some people have a demand for newer and better products,And as far as I know,though apple might downgrade the phones performance,they are still providing ota updates to older models.So people have a demand for newer and better technology,rather than urges of updating their phone,