Read the following extract from an article and answer the questions in your answer booklet.
Apples new iPhone SE shows its finally starting to take Android seriously By Lisa Eadicicco When Apple launched the iPhone 11 back in September, there was one specific aspect of the announcement that raised eyebrows: Apple had seemingly lowered the price of its flagship model. Signalling a shift from its strategy in 2018, Apple positioned its least expensive new iPhone as its primary smartphone offering for 2019. The pricier iPhone 11 Pro and iPhone 11 Pro Max, by comparison, were framed as gadgets for camera enthusiasts willing to pay extra for a triple-lens camera and a more premium design. Now, with a much cheaper iPhone SE, Apple is continuing that trend and sending a similar message. The new phone retails from $400 (R7,000) in the US pricing in SA has not yet been confirmed and is an acknowledgement by Apple that not everyone can afford or is willing to pay around R18,000 for a new smartphone. And by launching an iPhone that caters to that audience from shoppers in emerging markets where less expensive phones are typically more popular, to legacy iPhone owners that want a cheap and familiar device Apple has an opportunity to expand its installed base by targeting new users. The iPhone SE isnt really about Apple selling more iPhones simply to generate more revenue from iPhone sales. Its about taking the next step in the strategy Apple seems to have been pursuing for some time now using the iPhone as a catalyst to lure people into its ecosystem and keep them hooked for whatever may be next. And more than anything else, it send the message that theres a new iPhone for everyone, not just those who can afford to spend R12,000 or more. Source: https://www.businessinsider.co.za/apple-iphone-se-launch-price-shows-direction-wearables- ecosystem-2020-4 [Accessed 13 August 2020]
Q.4.1	Price, or the meaning of price, determines the demand for an organisations product and service as well as the profit levels. In deciding on the right price for the iPhone SE, Apple would have had to answer five important questions. List these questions along with possible answers by Apple in determining the right price of the iPhone SE.	(20)