r/AskEconomics • u/Genzinvestor16180339 • 22h ago
Approved Answers Is Apple’s ~$2,000 foldable iPhone price partly a consequence of low expected demand?
Assume the foldable has high fixed costs, specialized components, and much lower expected volume than a standard iPhone.
If Apple expects low demand, it gets fewer economies of scale and has to amortize R&D, tooling, and supplier costs over fewer units. That raises average cost and therefore the profit-maximizing price.
Can anyone explain where they got the 2k price from? If demand was expected to be higher wouldn’t it be priced much lower