Why Apple Products Are So Expensive
There is considerably more to Apple’s price than meets the eye, despite the initial impression that it is abusing its brand name. A product’s high price is also influenced by elements including Apple’s unique ecosystem, privacy policies, marketing expenses, and high resale value. Good items keep their worth better because they last longer.
When asked about why Apple products are expensive, Tim Cook, the Apple CEO, repeated that Apple has always chosen quality over price. Apples CEO Tim Cook has also stated that Apples innovation and the release of new products is really driven by the constant desire to create new and convenient gadgets. The CEO explained that Apple found out that in order to make a lower-priced Mac, it had to create an inferior product, and this is not what Apples brand stands for. Apples CEO, Tim Cook, says that Apple is not only continually asking Apple questions, but also testing to see how it can make products like the iPod, MacBook, and iPhone cheaper.
There are plenty of Samsung users and others who insist Apple is simply too expensive. There are some items that are much more expensive than their competitors, such as Apple TV, Retina Display XDR, RAM upgrades, and the Airpods Max, but like I said earlier, the majority of products in Apples lineup are competitive, not expensive. Apple does offer cheaper models, such as the iPhone 11 or 11-inch iPad, but cheaper models are not always the models customers go for. While at first glance, Apple products really do seem to be expensive and high-end, but once you factor in materials used and construction quality, Apple products are largely priced competitively.
While Apple products certainly seem pricey, Apple is selling a value that returns far more than the price it commands. Apple has been successful in convincing Apple customers that their products are more valuable and full of content compared with their competitors.
If Apple wants to retain its Apple faithful, its innovations must keep up with its premium pricing. Charging premiums allows Apple to continue growing revenue, even as its biggest category, iPhone, shrinks. Apple is able to charge a higher price for Apple products due to its tighter quality controls and its greater investment in R&D.
Apple also has stringent quality control measures, increasing production costs. They make only quality products, offering excellent performance and complete functionality. Apple has built up a lineup of good, consistent products, a highly respected brand, and a strong customer base.
Apple is the worlds most valuable company, but yet, they command premium prices for their products, which no other company is able to compete with. Apple can charge whatever they want, although there are several Android phones out there that are cheaper than an iPhone. That is not to say Apple does not use its reputation as an apple to charge high prices for accessories and unneeded warranty plans, but the flagship products are about as cheap as it gets.
Now, Apple is taking steps not just to make its products priced more competitively in India, but to also set up its first retail stores in the country. It all started earlier this year, when Foxconn began test-firing iPhones in India, setting the stage for the possibility that Apple could someday make Apple smartphones in the region, as well as comply with its 30% local-source rule. Apple is not the only company that is importing their devices into India, several Android smartphone companies are doing the same.
Apple is still reliant on third-party retail networks for selling Apple smartphones and other products in India. This means that Apple would need to go along with the policy in order to establish an Apple-owned manufacturing facility in India. Due to lack of indigenous production units in India, Apple products are priced comparatively higher, with taxes and Customs Duty charges being levied noticeably higher than any other products.
A source with knowledge of the matter said that assembly of iPhones in India is unlikely to reduce prices for the domestic consumers since Apples OEMs (original equipment manufacturers) are still paying higher rates for imported components. Experts speculate the higher prices in India are the result of the high import duties, the 18% GST, other levies, and Apples own margins. When comparing these prices with iPhones $285 premium price in India, this supports the notion that Apple is just taking in as much revenue as it can from customers in India, as Apple knows people with the cash will still pay whatever the price is for its premium phones.
Other countries outside the U.S. are not doing as well, with over in India, the iPhone 12 Pro Max is priced at $2,159, which is pretty ironic considering these are supposed to be emerging markets, so it is strange for Apple to be pricing Apple products so out of the range of many customers living in that region. Perhaps Apple could adopt measures similar to the one it took in India, to lower its tax burden and bring down prices, but more likely, customers in overseas markets are going to have to keep biting the bullet and cough up extra cash for their favourite products. A lot of people there feel Apple is an overhyped brand that makes overpriced products.
Well, there is a reason why Apple is called the innovation brand of the technology industry: It tends to deliver to its customers what they want, before they want it. Well, you can see that Apple has built its Apple clientele on premium products.
Apple Inc started providing Premium computer (iMac) quality at a higher price. Eventually, Apple had to compensate the iPhone X by offering the much better XS for the same price. Apple values the magic products of Apple above all, meaning that whatever you buy from Apple is certainly going to be worth its price because of the quality.
One source said that Apple makes sure Apples channels and sales partners are floating lots of deals in order to make products more accessible for consumers. The entire story is Apple has spent so much time refining the Apple supply chain and parts that certain parts and components are exclusive only to Apple due to Apples high standards. It is generally agreed that Apple products like the iPhone, iPad, Mac, or iPod are typically the more expensive toys in comparison to Windows or Android devices that have similar features. In some cases, by contrast, GDP has increased more than the iPhones price, meaning it has gotten cheaper — in real terms, to use the favorite politician phrase — to buy an iPhone in countries like Russia, China, and India.
Why is Apple more expensive than Android?
However, the processing speed of an iPhone’s processor is quick and used by the Apple company. As a result, the iPhone is also superior to the smartphone in terms of the processor. Its processor consists of expensive and high-quality components, so the cost of production is also high.
Why Apple iPhone is so expensive?
Due to many factors, such as the GST, significant duties, and third parties taking their piece. The printed circuit board assembly (PCBA) used in iPhones is subject to a 20% import duty, according to CNBC. Similarly to that, there is a 20% import tax on iPhone chargers.
What is better Apple or Samsung?
Smartphones, on the other hand, can come down to personal preference. Apple’s OS is great, but Android is now just as good. If you’re not invested in Apple’s ecosystem, Samsung is a fantastic choice because you can switch to other Android devices, and Samsung’s engineering is excellent.