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Apple spaces four iPhone 15 models at $800, $900, $1,000, and $1,200 to make premium versions feel cheaper. Without the middle options, a $400 jump to the Pro Max would feel steeper. The pricing ladder nudges people toward higher-margin phones.

Apple spaces four iPhone 15 models at $800, $900, $1,000, and $1,200 to make premium versions feel cheaper. Without the middle options, a $400 jump to the Pro Max would feel steeper. The pricing ladder nudges people toward higher-margin phones.
A strategy that Apple uses, it's just allowed them to do extremely well over time. One thing that they've always done is they have multiple products. They have iPhone 15, iPhone 15 Plus, iPhone 15 Pro, iPhone 15 Pro Max. The reason they end up doing this is because let's say if they just had 2 options, let's go the iPhone 15 at $799, but then if you want to get the iPhone Pro Max, that's almost $1,200. You're going from $800 in essence to $1,200. That's a $400 price difference. But when you have an iPhone 15 for $800, you have an iPhone 15 Plus for $900, you have an iPhone 15 Pro for $1,000, and then you have an iPhone 15 Pro Max for $1,200, you're like, oh, the iPhone Pro isn't that expensive, or the Pro Max isn't that expensive, 'cause you're comparing it to the earlier options.