over eight million iPhones had sold in the U.S. marketplace. By most, if not all measures, the original iPhone was a huge success for Apple and its then-exclusive
U.S. carrier AT&T.
On July 11, 2008, Apple, Inc released the iPhone 3G, which it advertised as being twice as fast as the original iPhone for half the cost. However, in order to obtain an iPhone at the new price of $199, buyers had to agree to a two-year service contract with AT&T. This approach succeeded, and over a million iPhone 3Gs were sold during the introductory weekend. In 2011, the iPhone 4S—the fifth generation iPhone—led cellular phone sales with more than 25 million units sold. Several Android-based phones manufactured by Samsung were not far behind, however. When the iPhone 3G was released at half the cost of the current iPhone, it appeared that Apple's strategic focus had shifted from maximizing profits to gaining market share. Its lowered price was consistent with the approach.
a. price bracketing
b. penetration pricing
c. price lining
d. price-fixing
e. price skimming