"Apple would probably sell very few iPhones for $2,000 more than they cost today. How many they would sell at $100 more or $100 less may change significantly but they would still be huge sellers at either of those prices. So that "market sets the price" idea is not 100% accurate (I don't think anyway). ... Pricing decisions also have big long term versus short term considerations. Apple has started pricing many things in a way which makes it hard for competitors to undercut them. Apple, almost for sure could charge more for the laptops they sell and the iPad and iPhone. But if they did they make it easier for a competitor to compete on price. This pricing decision is an Apple decision not a market decision."
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