Discounts and sales are extremely rare parts of Apple Inc.’s (NASDAQ:AAPL) commercial strategy, though the trade-in program offered could be seen as a type of “continuity discount.” However, tomorrow, July 1st, 2014, is to witness a gift card special that almost qualifies as a sale. Though no products will be directed discounted by the Cupertino firm, certain purchases will earn a $50 or $100 gift card, which can then be used as a “discount” on another item.
The promotion does not allow those benefitting from it to purchase actual hardware at a discount, however. The gift cards are only usable in the appropriate App Store section related to the device purchased. Apparently, Apple (AAPL) still draws the line at having tangible good discounted in any way on its online store or in its directly owned physical locations.
Buyers of the iPhone smartphone or the iPad tablet will receive a $50 gift card along with their purchase. In order to be eligible to receive the $100 gift card, a buyer must purchase a participating Mac product. If previous years are any indication, and the Cupertino electronics titan tends to be a creature of habit in many ways, the Mac Mini will not qualify for this promotion. In a similar vein, the iPod Touch seems to be excluded by default, in all formats.
The promotion illustrates an interesting fact about Apple’s retail methods. The company almost never discounts its tangible products. Third party sellers often offer much better “deals” than Apple’s rather tight-fisted approach to discounts ever does. Yet, Apple Stores continue to be profitable, and people continue to flock to them and to Apple’s website to purchase items at zero discount, despite cheaper alternatives that would provide them with the exact same item.
The main attraction seems likely to be that these individuals feel they gain some cache by shopping at the Apple Store, a sort of conspicuous consumption for tech enthusiasts. Paying full price to get an item directly from Apple may be perceived as having more status value for the purchaser than buying the same thing from a hypothetical “Bob’s Discount Electronics.”
Additionally, many App Store apps, including paid varieties, are likely very useful for university students who make use of the Apple (AAPL) ecosystem. As such, the $50 or $100 App Store fit cards may well be useful for these individuals, even if they would not have otherwise acquired the apps in question.
