Why Apple products are Expensive??

A 1.3 lakh smartphone, a 40-lakh pc, a one lakh monitor stand, and 52,000 rupees for some wheels to attach with your CPU, these are some of the top tier apple products and you can see the staggering price tag that comes along with these. We all agree that if it’s an Apple product it will be expensive, but have you ever wondered what’s the reason behind it? Eating apples may be good for your health, but buying apple products is definitely not that good for your wallet. So, what is the reason? Is it just because of the brand or are these products that much good, justifying their cost? What exactly is the explanation for this exorbitant pricing? So, let see why apple products are expensive??

Brand Loyalty and Apple Tax

You know what, the manufacturing cost for the higher-end iPhone 11 pro max is about 490 USD and the same phone is currently available in the market for around 1,100 USD. Well, it is common for the manufacturers to set themselves a profit margin while selling their products, but when it comes to Apple, they set these margins way higher than the other manufacturers. Simply put, people are willing to pay extra money to buy an Apple product over competitor products with similar features. One of the reasons for this is the “Brand Loyalty”. Apple has been in the game for decades and at this time, they have built quite a reputation for themselves. And this reputation has created millions of loyal customers, there are people who’d literally wait in a queue for days to buy an iPhone. 

Let’s take an example of various fashion brands, say Gucci, Louis Vuitton, Hermes and so on, these are all the luxury fashion brands that sell really really expensive products. Yes, they produce top quality products, but these products definitely do not justify their prices. People are willing to give extra money just for the brand. That’s the same case with Apple, with all the good reputation they’ve built, Apple has established itself as a premium lifestyle brand, rather being just a tech brand. Another reason for this high reputation is that, apart from the so called mid-range iPhone SE, Apple never entered this particular market section. If you look at Samsung, you can buy a ₹10,000  Samsung smartphone or a ₹75,000 Samsung smartphone. So, it’s like anyone can buy a Samsung phone, but not everyone can easily afford an iPhone. Over a period of time, this strategy made Apple this Premium company that it is today.

“The Ecosystem”

Apart from making these style statements, another important thing we need to look at here is the “The Apple Ecosystem”. The ecosystem is one of the strongest selling points of Apple. They literally make everything you need. They produce smartphones, they produce laptops, tablets, smartwatches, PCs, and whatnot. And the key thing here is, these products work very well together. Say you store some information on your MacBook, you can access the same in your iPad or iPhone via iCloud. You can respond to a text that is received on your iPhone, with your Apple watch. And there is many more things with  iTunes, Apple Tv, iCloud and more. So, when you’re buying a new Apple product, you are not just buying a new product but literally you are stepping into their ecosystem. I know only a few people who switched to Android from Apple, that ecosystem is not so easy to escape. But, hey they really make some good products and let’s not strike that out. 

    Earlier we looked at the components cost for an iPhone, but  a lot is going on behind the scenes. Apple invests a lot in its Research and Development. The software, the processor of all of these things, Apple, they develop from scratch in their own backyard. On the other hand, almost every android device, they can buy the OS from Google, processors from other companies. Apple is very careful about selecting the components for its products. Apple does not want to make compromises when it comes to  quality.

    Yes, of course, Apple makes some of the best products out there, the reason I am saying it is overpriced is only that most of the time these products do not justify their price. Yet Apple gives more fulfilling and rich experience and as a result, most of the consumers don’t mind paying this extra price for Apple products.

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