Especially after the launch of the original iPhone, the company has been more focused on design, functionalities and component quality than the consequent cost. Because of this "Apple Tax" Apple products are often more expensive than its competitors. His answer — that Apple doesn’t want to sacrifice quality for price — served mainly to reinforce his argument that Apple values great products over all else. For example, Sony competes with Apple in smartphones, but all of the camera sensors that go into an iPhone are made by Sony. This is similar to other companies that often charge a little more than their competitors for products that aren’t necessarily better in performance or features, under the pretext of brand value or brand offering. Circle Of Willis: Anatomy, Diagram And Functions, Coefficient Of Restitution: Definition, Explanation And Formula. Why are apple products so expensive? A basic Windows PC without additional software can be bought for a fraction of a price of a MacBook. competitors build more feature-packed products for way low prices and they are selling very well For example, a MacBook comes preloaded with a lot of apps that have been developed in-house by Apple; this cost of development gets factored into the price of every MacBook. Hence, another reason why Apple products are expensive is that premium pricing helps the company promote and sust… Because of this "Apple Tax," Apple products are often more expensive than competitors, bringing in huge profits for Apple. Apple product prices, why are they so high, and why are people willing to pay those prices? Why ‘Objects In The Mirror Are Closer Than They Appear’? And adding memory or storage to these products increases the cost even more. They are always in search of innovation and streamlining the manufacturing processes. Apple loves to talk about its innovation. Why Are Laptops Getting Lighter And Slimmer. All rights reserved.For reprint rights. A Smarter Look. Divine_Aura. - They are expensive because they know we will buy all of their things no matter how expensive it is. And adding memory or storage to … report. They were category defining devices, but nowadays plenty of other manufacturers are rolling out do-it … What Is The Huntsman Spider? kabhi socha hai kyu..? 1. The first is that they’re an Apple product and the brand does not manufacture cheap products. Sharing Knowledge Makes You Look Cool. Here are 10 reasons why apple products are so expensive. Why are Apple products so much more expensive in the UK? Narrator: And those components cost a lot less than a new iPhone. So what makes Apple products so expensive? I'm probably getting two, man! As the US's first trillion-dollar company, Apple's market cap is higher than the GDP of Switzerland. Apple does offer cheaper models, like the iPhone 11 or the 11-inch iPad, but those aren't always the models customers choose. Having said that, I do not mean to say that Apple products are just overpriced junk. With that being said, it doesn’t mean that Apple devices are ‘crash-proof’ or immune to attacks from viruses and malware. Narrator: But this strategy might not work forever. 8 8. comments. 12 Answers. To begin with, if people want to know why Apple’s products are so popular in the recent years, one of the answers is the design of the product is very important. eval(ez_write_tag([[580,400],'scienceabc_com-box-4','ezslot_0',170,'0','0']));Beyond buying high-grade components, which increase the manufacturing cost, Apple also invests heavily in research and development. But are these products worth the premium? Narrator: In 2016, the iPhone 7 started at $649. 1. Part of the image of being a luxury product in the minds of users is because Apple over the years has unremittingly focused on high-end products and specialized in that area. From Pyramids To Skyscrapers: History Of The Tallest Buildings. And I know that you have to consider tax and the difference between pounds and dollars. chaliye mai b atata hu ki,Why Apple is so expensive. There’s a fair amount of overhead that goes into the design, materials, and construction of each product manufactured. The price is that high because of its lack of competition. How Big Is It and Does It Bite? However, given an established tenure and a favorable reputation in the industry, it can position its products in a manner that it exudes superiority or luxury. ‘Pre-COVID life won’t be back in 2021’, says Deutsche Bank’s CIO⁠ — he also says Asia will continue to rise, These were the highest paid YouTubers of 2020, according to Forbes estimates. Despite the cheap price, it didn’t go down well with customers. Three years later, Apple's flagship iPhone cost 54% more. THEY DESIGN THEIR OWN HARDWARE AND SOFTWARE Apple develops its software with good performance and high speed and you can’t match them with other android phones, because they never compromise with their quality. But I think quality & design makes them far better than others. Like its $129 keyboard or its $79 mouse. Apple's reputation and brand allow it to charge a premium for its high-end products like the iPhone 11 Pro Max, MacBook Pro, or the iMac Pro. All these put together mean that Apple products are not cheap to produce. Narrator: That means the customers who buy the iPad Pro or the $5,000 iMac Pro. However, they are still better off than most of the other competing products in terms of security.eval(ez_write_tag([[300,250],'scienceabc_com-banner-1','ezslot_6',171,'0','0'])); When it comes to computers, Apple often charges for things you might not use. So if you want more memory, you have to pay more Apple tax. By comparison with other electronic products, the apple’s product is always the most aesthetic appearance of electronic products … Copyright © 2020. Apple has reported a profit margin between 30%-40% over the years in their annual reports. Get Tech Updates on Whatsapp. Yes, Apple has been recently stepped into more reasonable products like $330 iPads and iPhone SE. Oracle billionaire Larry Ellison has moved to Lanai, the Hawaiian island he's spent half a billion dollars developing. What Would Happen If You Shot A Bullet On A Train? But why do Apple products have this reputation for being so gosh darned expensive? Adding memory or storage to these products increases the cost even more. Let’s start with the obvious answer: you are paying some percentage just for the brand reputation. LVMH confirms deal to buy Tiffany for $16.2 billion in its largest acquisition ever, THE ONLINE GROCERY REPORT: The market, drivers, key players, and opportunities in a rising segment of e-commerce, Gen Z is more likely than other generations to spend the most on themselves during the holidays, Apple's reputation and brand allow it to charge a premium. If you happen to be an ardent Apple fan, one of the things that entices you to the brand is that you get an entire ecosystem with the product, wherein everything gels with one another. Man, I'm super excited, I'm not even going to lie. Apple is the only company that makes mac. For example, when you visit a relative’s place and log in to their Wi-Fi on your iPhone and come back with an iPad another time, the password automatically transfers from your iPhone to your iPad. It's even more dramatic for the Mac Mini. Apple products come with their own proprietary software, which is owned and maintained by Apple. P2. What is Quantum Entanglement: Explained in Simple Words. Interestingly, according to teardown engineers at IHS Markit, iPhone X (retail price tag of $999) actually costs Apple less than $400 in assembly and material costs; similarly, iSuppli teardown third-generation iPads selling at $699 have a building cost of around $366. Apple has been successful in establishing itself as a “lifestyle brand” that can get away with charging premiums for products simply because people don’t mind paying extra to flaunt the brand’s logo! The failure of iPhone 5c has served as a strong deterrent for Apple to not venture again into the low-end product category. Leadership and Business Skill for Immediate I... Take Big Data from University of California S... Take Machine Learning from University of Wash... Tamil Nadu, Kerala to Witness Isolated Rains;... India Announces Temporary Ban on Flights from... Railways in Talks with Government for Transpo... Solstice, Great Conjunction, Meteor Shower—Al... 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