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9/14/2014 | 7:57:37 AM
Indeed, after the 5C experiment, it seems that Apple's new "down-market" route is selling the hoi polloi the basic model instead of a sub-basic model -- and making the basic model seem more down-market by making the higher end models even "higher."
Reminds me of a Harvard Business School project from several years back. Harvard Business School students were tasked with helping Wendy's sell more double cheeseburgers.
The solution they devised? Offering a triple cheeseburger.
The point of the triple cheeseburger wasn't to sell itself. The point of the triple cheeseburger was to increase double-cheeseburger sales -- the idea being that customers walk in, decide they're REALLY hungry, but not so hungry as to warrant getting the largest thing on the menu.
It worked. Double-cheeseburger sales increased as the product went from being a luxury to being a compromise.
Here, Apple's going the 16/64/128 route instead of the 32/64/128 route is genius because that huge difference will only further encourage people to buy the 64 GB models (where they might otherwise have been happy to buy the 32). Additionally, it makes the 128 GB seem even BIGGER by comparison -- and may also increase sales for that offering as well by boosting it in the minds of those who are even slightly inclined to seek the biggest and best.