Does this sound familiar? You look at two similar products in a store, one of them costs £3, while the other one costs £1.50. You decide to pick up the more expensive one. After all, doesn’t higher price means better quality?
This strategy of premium pricing – sometimes called prestige pricing – has been common in the smartphone industry for a long time. When Apple first announced the iPhone, it deliberately priced it at the highest end of the market to signal it was the most cutting-edge, innovative, amazing phone on the market. For the last ten years, Apple has had a monopoly on the prestige mobile phone. However, with the new foldable Mate X, Huawei’s latest smartphone to enter the market, the Chinese firm is challenging Apple’s right to be the sole premium smartphone. Read on for how Huawei is hoping to challenge the world’s biggest tech company – and why their two thousand pound phone might just be a groundbreaking shift in the market.