It's $29 because that's what the market said it's willing to pay for a piece of rubber and plastic. Basic market economics. If the market's not willing to pay, then the market will adjust the price. Apparently the market's willing to pay $29.
Talk about sweeping statements. There is a hell of a lot more to "Basic market economics" than "If the market's not willing to pay, then the market will adjust the price" but thanks for ridiculing everyone in the field.
In this particular instance, cases are just an accessory market for Apple. They don't care if they are selling as many of these as possible because it's not even a secondary revenue stream. They can afford to let it just sit there at $29 until it rots or someone buys it.
Ok, that's just plain wrong. Stores like the Apple Store or Fry's make their biggest margins on the accessories. Of course they care about selling as many any the can. You really think the margin on an iPhone is anywhere nearly as big as the margin on a rubber iPhone case?
Any economist will tell you there is cost associated with having inventory sitting on the shelves and not moving. Floorspace in an Apple Store, or any store for that matter, isn't free. There's rent, opportunity cost, maintenance, etc. Basically, if people stopped paying high prices for rubber cases at a store, the store will drop the price because there's cost associated with it sitting there. Maybe Apple can endure a lot more pain than their competitors, but that's not magic, that's because of the pile of cash they're sitting on. If they had less cash, they wouldn't be able to endure as much pain in the market. Yes, maybe there's other forces at work, but basic market forces don't stop applying just because it's Apple.
Certainly, but it doesn't change the fact that the market recognizes a place for the $29 product. You can walk into the Apple store and see ridiculously priced cases. It's because people are willing to pay. The market sets the price. If someone doesn't like it, they have a choice. It's the beauty of markets.
You can argue about markets setting the prices if those prices change. I doubt the $29 price point is going to fluctuate anytime soon. Apple picked a price, not the 'market' and that's where it'll stay. Whether the market will bear it is an open question.
Pricing products can be a complicated issue and can involve more than just market forces.
