Bloomberg West Top Stories:
(1) GE Exiting most of the finance sells $26.5B worth of real estate
(2) Blackstone buying Excel Trust in real estate expansion
(3) Hillary Clinton to launch campaign on Sunday
(4) Congress seeks oversight of any Iran nuclear deal
(5) Nokia may sell maps business
Bloomberg West The Lead:
Apple Watch pre-orders begin. Apple’s first entirely new product since iPad. Apple Watch on pre-sale display around the world. There are lines of different locations including Australia and Japan. Apple even encouraging people to make appointments for those tryout.
This approach of selling, the line in front of apple store is purely a PR gimmick but the press including us show up every time they release new product to use those lines to make us look like that the products are popular and they can’t manage the demand.
How are they using price to convey image?
Arif Mohammed: Apple is merging the technology with fashion, what apple understand there is wide variety spectrum of tast, and this is how they gone from this pricing strategy rank from $349 to $17,000 dollars, which I actually thinking this is a mistake because first, apple will come of next better version. The big question is spending 1000 dollars which is disposable, so when one year the fashion look a little bit outdated and the technology will be inferior. Secondly, we upgraped of iPhone all the time, that’s subsidized by carriers, and you won’t have the subsidy right now. The question is try and buy now or wait for a year? And that’s the big challenge facing with this pricing strategy.