Last Updated on October 28, 2021 by srikanta
According to a report there are 74% people who use Android whereas only 26% people are using iPhones. Now that’s a huge difference. So why more people are using Android than iPhone. One of the main reason is that iPhones are much expensive as compared to Android. Now the question is why iPhones are so expensive? To get the answer read this article below and we will try to explain you in detailed.
Whenever we talk about iPhones, our thought goes straight to its price. There are many theories related to “Why iPhones are expensive?” The most common and the most accepted theory is that Apple charges higher price just because of it’s LOGO or the brand value. Upto some extent this theory holds true but is it the sole reason for high price? And if this is not the sole reason then what else are the qualities for which apple charges so high price?
We all know that Apple is a premium brand. Over the years Apple has established itself as a trustworthy and genuine company. We can say that Apple has brought revolutionary changes in the technology industry. With the iPod it changed the music industry and with the iPhones it changed smartphone industry in 2007. Apple is still bringing new technology with its smartphones, MacBooks or iPad. These things have helped Apple to generate a huge loyal fan base. And people are willing to pay any amount to use its products.
On the other hand Apple provide its customers a premium quality product which is worth the money spent. Now if you will elaborate and look deeper then you can say that it is not a total waste of money. So we can say that due to its quality Apple has made a high value in its customers heart over the years.
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Now things get a little extra interesting. All other companies products in the market today don’t have any strong reasons to retain their customers. In simple words a person who is using Android smartphone can switch to any company if he wants to upgrade his phone. But here the strategy of Apple ecosystem comes into play.
Suppose a person is using iPhone then there is 99% chance that he will buy a MacBook or iPad which will work with greater convenience with the iPhone. Again there are no other ios smartphone companies so the person will definitely go for another iPhone when he wants update the phone. So here we can compare that the value provided by Apple is higher than other companies in the market.
Now the question is “is this value worth the price?”
If we will think logically then we can say that, Yes the value is worth it. For example if we will compare at MacBooks and other Windows laptops then there is clear difference in the user experience. Its hard to use the 5 year old Windows laptops now but many MacBooks users are still using their 6-7 years old MacBooks. Apart from this Apple also gives good, seamless and secure experience to its customers who are using old phones. These things can’t be said for android users.
You can know the craze of Apple from this example. You must have seen Apple phone with mobile case where the logo of Apple is clearly visible but this thing is rare in any other Android phone. This is because people wants to show the Apple brand to other which makes them looks more classy.
So we can say that people are willing to pay high price for iPhones to show it to other people. But this thing applys for a small portion of customers. However bigger brand a company becomes, it can’t hold its large customers base just on brand value for long period. But Apple, despite being a premium lifestyle brand has able to hold its customers. This is only because it provides best quality, latest features, top most privacy, connected ecosystem and also products with longer lifespan.
Other than the qualities and specifications Apple has some other parameters which increases its price. Among those parameters the most important one is the R&D or Research and Development. For providing new and unique specifications Apple invest a huge money in its R&D department. Be it the in-display fingerprints or fastest operating system, Apple has always stayed ahead of other companies. So the R&D is a major reason why iPhones are so expensive.
Except for R&D, the marketing and advertising cost of Apple are a lot. Also there are many Apple stores all over the world, which needs man power and other arrangements. All these things collectively increases the price of the iPhone.
Back in 2012, the brand new iPhone 5 started at $200, while today, the current flagship iPhone starts at $1,000. Such has been the price growth of the iPhone. Yes people gives some Apple Tax but it will be unfair to say that this is solely because of the brand value. With such higher range people are also getting higher specifications from Apple.
Hope you have found the blog useful. What you think about “Why iPhones are so expensive?” Comment below and let us know.