6 Reasons Why Apple Is So Expensive
Have you ever wondered why Apple items are so expensive in comparison to other brands? What is it that an iPhone and a Mac have and others don't?
Once an Apple user, always an Apple user, as the saying goes.
No. I'm not referring to the youngsters who have no concept of why they need an Apple product. They're clueless brats that only want that logo.
I'm referring to professionals and business owners in the real world. Why do the majority of these professionals own Apple's whole ecosystem?
Is the pricing of these iPhones truly justified? Why does this corporation need to raise its pricing so dramatically?
we simply have too many doubts!
Even if Apple makes a lot of money, there are a few things that almost everyone overlooks. Here are the seven elements:
Why Are Apple Devices Expensive? Several factors!
1] Software
When comparing an iPhone to any Android phone, the most obvious difference is in the software. iPhones support iOS, and Android phones support Android.
Google, on the other hand, provides Android with a nearly free and easily manufactured Android OS. Meanwhile, Apple must create the operating system from the ground up. When compared to other Android brands, this is extremely expensive.
Why does Google provide Android for free while Apple demands a high price? No, not really.
Android appears to be free for users and manufacturers to install on handsets. Manufacturers, on the other hand, must obtain a license from Google to provide you with the Google Play Store.
Android smartphone companies like OnePlus, Redmi, and Realme add that cost to the MRP of the devices. If they don’t, people are unlikely to purchase Android smartphones without Google services.
This is what happened when Google discontinued giving services to Huawei-Honor.
According to the Android Authority research, Huawei is anticipated to lose 20% of its market share as a result of the trade war between the United States and China. Even though Huawei controls the majority of the Chinese market, this is a significant setback for the company.
So simply, without a Google license, Android companies are nothing. It is less expensive to administer because Google works on economies of scale. Furthermore, Android is open-source. There is no need for Google to govern Android entirely.
Apple, on the other hand, manages everything on its own. As a result, they charge the users directly.
2] High-End Lifestyle Brand
Apple never targeted the middle or lower classes. It has effectively established itself as a premium lifestyle and luxury brand.
Every brand has a market positioning.
For example, Xiaomi is the affordable smartphone king, while OnePlus offers the best value for money.
Microsoft has its own set of target audiences and initiatives.
Similarly, Apple has successfully established itself as a premium brand.
When someone uses an iPhone or a Macbook, it is considered that they live a rich lifestyle.
Apple even released an 'affordable' iPhone in 2020 called the iPhone SE, which costs more than Rs 40,000!
To be honest, that was a joke in the name of low-cost smartphones. this can not be considered a budget smartphone.
Apple has never ventured into the mid-range or cheap segments. It has always ranked first among luxury brands.
This is why practically every movie, celebrity, businessman, and so on unintentionally promotes the brand.
In fact, Apple is so preoccupied with its image and positioning that it forbids movie villains from owning an iPhone.
The Umbrella Academy:DOWNLOAD
3] Iconic Apple Stores
Apple stores are the company's public face. If you are naturally tech-savvy, I strongly advise you to visit an Apple store. You will definitely love it.
The Apple Store is not yet available in India, but it is planned to be available by 2021.
They have already started the Online Apple Store in India on September 23rd, 2020. Let's see how it goes with actual stores.
To get to the point, Apple spends a lot of money on its stores. These Apple stores are located in the most prestigious areas of the wealthiest cities.
Almost every luxury brand spends a significant amount of money on marketing and branding. How will people perceive luxury if the brand is not serious about the aroma?
I can't convey the greatness of these stores, but I can certainly demonstrate it.
Apple recently debuted its floating Apple Store in Singapore.
Another Apple Store in Shanghai, China.
And there are over 500 incredibly appealing Apple Stores throughout the world. None of them appear to be ordinary.
The architectural beauty of these Apple stores necessitates significant investments in development and maintenance. So, who will foot the bill? You, as a customer, of course. What else were you expecting?
4] High-end Components and Finishing of the Products
Have you heard Steve Jobs' story about the first iPod?
When the engineers working on the original iPod finished the prototype, they brought it to Steve Jobs for approval.
Jobs played with the device, scrutinized it, weighed it in his hands, and promptly rejected it. Because it was too big.
The engineers claimed that in order to produce the iPod, they had to reinvent inventing and that it was simply impossible to make it any smaller.
For a brief while, Jobs was strangely silent. He eventually stood, walked up to an aquarium, and dropped the iPod in. Bubbles floated to the surface after it touched the bottom.
"Those are air bubbles," he shouted. "That suggests there's room in there." Make it smaller."
It takes time, money, and patience to achieve this degree of excellence.
You may mock Apple's pricing or features, but none can deny the company's quality and craftsmanship. That is the authority they established!
The tech sector has a strong belief that Apple never skimps on its components or finishes. The components will always be reliable, no matter what.
The tech sector has a strong belief that Apple never skimps on its components or finishes. The components will always be reliable, no matter what.
Not only is Apple confined to premium components, but it also guarantees the majority of its products. If you own an Apple, you are probably aware that they do not believe in repairs. They simply replace it at no cost.
If they charge you for repairs, you might consider purchasing a less expensive non-Apple gadget.
But that is unusual. I generally heard about how Apple users have been using their iPhones for the previous 3-5 years and Macs for the last ten. It clearly denotes high quality.
5] Research and Development
Not every brand invests considerably in research and development. Apple is one of the Big-5 brands for a reason.
As previously said, Apple must conduct extensive research and development to build its own goods from the ground up. They can't say, "Hey, let's copy Samsung or Xiaomi!"
Even if they wanted to, they couldn't because of their own ecosystem compatibility.
If Apple believes a product is valuable to its customers, it must develop its own hardware and software. This is not the end of the story. They must ensure that the product is totally compatible with the ecosystem.
One example is the company's own Safari browser. Apple was developing a Windows version. According to TechCrunch, they had to abandon the entire project in 2012.
Although the causes are unknown, it is clear that if Apple were any other corporation working on Windows, they would never confront this difficulty. However, cross-platform optimization is challenging.
Most businesses will only work on and complete a project if it has the potential for scalability and expansion. Otherwise, they will cease to work on it.
6] Other Costs
When you buy a smartphone or other electronic device, the price includes more than just the fixed components. Furthermore, there are other hidden charges.
A] Marketing
Apple continues to actively market its freshly released goods. This includes all money spent on print media, news media, internet media, social media, and so on. Apple promotes virtually everywhere.
Furthermore, social media influencers charge a high fee for influence marketing. Although Apple does not need it, it is done for the sake of brand value.
B] Labor Cost
We can't just buy components because the hardware requires development from the ground up. As a result, the corporation requires laborers and must compensate them. Labor expenses are low in places like India, but they are much higher in the United States.
C] Custom Duty
Every product manufactured in India is subject to hefty duty charges. Every country has its own set of taxes. This is why an iPhone costs so much less in Dubai or other nations. If you wish to buy one, you should try to get it from Dubai.
D] Legal Battles
Every Internet company is constantly being sued. It necessitates financial resources. Larger situations necessitate more costs. These are some of the more recent examples.
- The Wall Street Journal: Apple is facing a $1.4 billion lawsuit in China over the Siri patent.
- TechCrunch: Apple has agreed to a $500 million settlement in a lawsuit alleging that it throttled older phones.
- First Post: In an intellectual property case, Apple loses $440 million to Virnetx Inc.
- Observer: Apple may be required to pay up to $60 million to 12,400 former and current employees at 52 Apple stores.
This only scratches the surface.
E] Profits
In the end, this is the most obvious reason. Apple understands that even if they keep their items costly, customers will continue to buy Apple products. As previously stated, the two most common reasons are Apple branding and the ecosystem.
Apple is such a distinctive product maker that it will continue to attract its core customer base. This makes it risky to absorb the majority of the profits.
So, the next time you're wondering why Apple items are so pricey, you'll know why.
Without a question, Apple is an expensive purchase, but we can't really complain because it caters to a niche market.