Apple IPhone Apple, Inc.'s IPhone First Went on Sale on June 29

Multiple Choice

Apple iPhone
Apple, Inc.'s iPhone first went on sale on June 29, 2007. Apple's loyal and enthusiastic customer base is known for rushing to purchase its new products, and the iPhone enjoyed a tremendous amount of buzz before its introduction. As expected, the iPhone entered the market at what many believed to be a high price ($599) . However, within weeks, the price was reduced to $399. By the end of 2007, over eight million iPhones had sold in the U.S. marketplace. By most, if not all measures, the original iPhone was a huge success for Apple and its then-exclusive U.S. carrier AT&T.
On July 11, 2008, Apple, Inc. released the iPhone 3G, which it advertised as being twice as fast as the original iPhone for half the cost. However, in order to obtain an iPhone at the new price of $199, buyers had to agree to a two-year service contract with AT&T. This approach succeeded, and over a million iPhone 3Gs were sold during the introductory weekend. In 2011, the iPhone 4S-the fifth generation iPhone-led cellular phone sales with more than 25 million units sold. Several Android-based phones manufactured by Samsung were not far behind, however.
-Refer to Apple iPhone.When the iPhone 3G was released at half the cost of the current iPhone,it appeared that Apple's strategic focus had shifted from maximizing profits to gaining market share.Its lowered price was consistent with the _____ approach.

A) price bracketing
B) penetration pricing
C) price lining
D) price-fixing
E) price skimming