[Principled]

But aren't you one of the guys that claims that cutting prices will increse sales?

If there are two similar products and one is priced lower, the lower priced model will outsell the more expensive model. Further, if two similar items are priced similarly and then one of them lowers price, the lower priced item will increase its market share. Duh.

[Your Nightmare]

If there are two similar products and one is priced lower, the lower priced model will outsell the more expensive model. Further, if two similar items are priced similarly and then one of them lowers price, the lower priced item will increase its market share.

They could race each other to the bottom and both go broke or they could put similar prices (the market price) on their similar products and both make a decent profit.