Question

What pricing strategy will be used to launch a high-end smartphone?

Answer 1

High-End Smart Phone: Cost plus pricing strategy.

For a high-end smartphone, a cost-plus pricing strategy is commonly used. This approach is based on the principle that the selling price of a product should cover its total cost and provide a reasonable profit margin. The margin can be either a fixed amount per unit or a percentage of the cost. This margin is referred to as a "mark-up," hence the term "mark-up pricing."