Apple is a “master of the upsell” says analyst Gene Munster
But if you toss in just $100 more (less than $5 a month for 24 months), you’ve increased the display to 6.5-inches and have powered your new handset with the largest battery on an iPhone yet.
The thing about Apple and the upsell is that while salesmen can help push the customer toward a pricier purchase (“Sir, if you skip just one lunch at McDonald’s every month it will pay for the 256GB model”) in many cases the consumer will upsell himself. That’s because of the customers’ familiarity with the products. According to Munster, “The reason why Apple is able to motivate consumers to spend more is that the company builds the world’s greatest consumer tech products. The math is simple for consumers: the products offer more value than the incremental price premiums.”
Lastly, Munster says that with the new Fitness+ workout subscription service, Apple is going after Peloton’s $12.99 monthly Digital Membership plan. While the analyst says that Apple’s software (meaning the actual workout videos that stream over the tech giant’s devices) is “superior” to Peloton’s offerings, he states that the latter has an advantage in software-hardware integration.
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