what types of businesses use price skimming 
price skimming is commonly used by businesses in industries where products have high initial development costs and significant consumer interest this includes technology companies like apple and samsung which use this strategy for new smartphone and gadget launches as well as high end fashion brands and automobile makers 7the bottom lineprice skimming sets high initial prices for new innovative products to target early adopters then lowers prices over time to attract more budget conscious buyers this approach maximizes early profits and helps recover development costs as seen with apple s iphone however timing is critical for example delaying price cuts can drive customers to competitors though effective price skimming works best for highly innovation products or products with a high perceived value it s less successful for follow up competitor products because the early adopter market may already be saturated 