Apple's app store sells items at reasonable prices but charges premiums on their gadgets like iPad Air, etc. This is a classic example of a reverse razor and blade. True or False?

Understand the Problem

The question is asking whether the scenario described about Apple's app store and its pricing strategy is an example of a reverse razor and blade model. This type of question is typically seeking a true or false answer.

More Information

The reverse razor and blade business model involves selling the main product at a premium and the add-ons or complementary items at lower prices. Apple sells its gadgets at high prices (iPads, iPhones) and the apps and services on the App Store at reasonable prices, fitting this model.

Tips

The common mistake is to confuse the reverse razor and blade model with the traditional one. The traditional model sells the primary product at a low price and charges high prices for the consumables or complementary goods.

Sources

• Business Model Guide: 70+ Business Models Patterns Explained - fourweekmba.com