When Apple Computer Company Introduced the IPhone-A Combination Phone,MP3 Player,and

question 14

Multiple Choice

When Apple Computer Company introduced the iPhone-a combination phone,MP3 player,and Internet access device-in 2007,it was priced at $499,considerably higher than either the iPod or competing cell phones.Apple was probably pursuing a __________ pricing strategy.

• A) market penetration
• B) slotting allowance
• C) price fixing
• D) reference price
• E) skimming

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Definitions:

Sustainable Rate Growth

The maximum rate at which a company can grow its revenues without needing to obtain additional financing or reduce dividend payments.

Financial Statements

Written records that convey the business activities and the financial performance of a company, including income statement, balance sheet, and statement of cash flows.

Future Growth Prospects

The potential or expectations for a business or investment to expand or increase in value over time.

General Motors

A global American corporation with its main office in Detroit, specializing in the design, production, marketing, and sales of automobiles and their components.