Mobile phones are one of the fast upgrading technologies these days. Since latest features are added frequently, older mobiles lose their sheen fast in the so-called mobile race.
As observed, with the introduction of latest features, older mobiles have their prices slashed, drastically. This is encouraged to de-load extra stock and make space for latest technology.
Many Companies use festivals as pretext to slash the mobile prices and take advantage of extra profits out of extra sales. Reduction of prices by 10% or more not only boosts sales but also increase profits for the Company. This is so because, although profit margins are reduced, higher sales contribute to larger profits.
High-end mobiles have greater space for slashing prices. They are always introduced at higher than normal price because of some latest features in them. Therefore, it gets easier to slash their prices much more then customer’s expectations.
It is one of the prominent mobile Companies’ strategies to price their high-end products at premium and then slashing the prices after a year or so.
As observed, with the introduction of latest features, older mobiles have their prices slashed, drastically. This is encouraged to de-load extra stock and make space for latest technology.
Many Companies use festivals as pretext to slash the mobile prices and take advantage of extra profits out of extra sales. Reduction of prices by 10% or more not only boosts sales but also increase profits for the Company. This is so because, although profit margins are reduced, higher sales contribute to larger profits.
High-end mobiles have greater space for slashing prices. They are always introduced at higher than normal price because of some latest features in them. Therefore, it gets easier to slash their prices much more then customer’s expectations.
It is one of the prominent mobile Companies’ strategies to price their high-end products at premium and then slashing the prices after a year or so.
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