iPhones don’t stay full price because of demand, it’s pricing power
In this brief monologue, Dan Novaes explains why iPhones rarely go on sale. He argues that the lack of discounts is not due to weak demand but to Apple’s pricing power, which stems from its tight control over the entire supply chain and its deliberate minimization of retailer discounts. Novaes highlights Apple’s use of scarcity psychology—maintaining consistent, high retail prices to set a high reference price in consumers’ minds—so that a $999 price tag feels justified. He contrasts this approach with competitors who frequently use sales and promotions, thereby lowering perceived value. The overall message is that Apple’s strategy keeps the perceived value of iPhones high, regardless of actual market demand.
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