It uses high pricing to signal the higher quality of its new product, a perception reinforced by the rest of its product array ( the components of which are all at various later stages of the skimming cycle).It does not have immediate competition that’s able to undercut them.It has a huge number of loyal customers who already see the brand as immensely credible and attractive.That’s because Apple ticks all the boxes necessary for price skimming to work, including the following: With each new product offering, Apple’s prices for newly released products seem to be so high that they’re almost dissuasive - and yet, there are always queues outside Apple stores on iPhone release days.

This might not strictly be SaaS, but Apple’s approach to product pricing epitomizes price skimming in a way that almost anyone will recognize. Let’s take a look at some examples of price skimming that demonstrate what contexts are ideal for this pricing strategy. But despite the self-evident charms of price skimming as a dynamic pricing model, you’ll need a number of factors in place for it to be truly effective. Price skimming examples are mostly seen among tech giants, like Apple, Samsung, Sony, and other companies that develop new technologies that they know are high in demand.

Disadvantage of penetration pricing