Instructions
Many people love their I-phones and spend hours glued to their phones. Apple has always sold a premium product and consumer satisfaction has always been pretty high. Apple’s recent sales of I-phones in Q4 of 2018 were disappointing. This is also a industry trend as nearly everyone who wants a smart phone already has one. Apple kept trying to raise sales in dollars by raising the price until people stopped buying(and slowdown in China with really cheap smart phones didn’t help) Should Apple continue with higher prices or should it be focuses more on unit sales? What about service revenue? How is that affected by I-phone pricing? How does elasticity affect your decision on pricing if you are an Apple consultant? Why is Apple stock so cheap relative to the market? Why do analyst value service revenue more than iphone sales? Explain.
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