Quote:
Originally Posted by solipsism 
Of course they could, how could anyone argue against that. They could also increase the margins and reduce unit sales. If you are asserting that by reducing margins will increase unit sales enough to make the company more money while maintaining the premium branding, then I'll need some proof, or even a well thought out hypothesis before I believe that.

Of course they could, how could anyone argue against that. They could also increase the margins and reduce unit sales. If you are asserting that by reducing margins will increase unit sales enough to make the company more money while maintaining the premium branding, then I'll need some proof, or even a well thought out hypothesis before I believe that.
The proof you are asking for cannot exist. If it did everybody would be managing their operations the same way. Everybody would be making money off their premium brands.
Branding is a perception. It's marketing. It's aimed more at the people that don't have your products than those that do. The people who already have your products know full well if the product is really a premium product or not. If you really have a great, premium product it's much easier to retain clients providing they have the cash for what you offer.
Branding is all about convincing potential buyers that the purchase will be worth it.
It is possible to reduce margins, increase sales and maintain the premium label but there are too many factors involved to guarantee success.
IMO Apple's number one concern must be market share growth. I believe current pricing is too high and that sooner rather than later they will have to adjust their price points (especially on the MB).






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Now that is debatable!