Why iphone is so expensive – iPhones have always cost more than Android Phones. Apple not only makes the hardware of its iPhones, but it also makes the software of iPhones as well. Apple controls the entire user interface on its own. Apple’s competitors like Samsung make their own handsets from long ago, but they use the Google Operating System for the software.
Apple iPhone has always been considered a high-end product and this is their status symbol for the people. Meaning people show their wealth by buying iPhones. This means that rich people are ready to pay a heavy price for it without seeing any features of iPhones. And in today’s time, iPhones are the world’s most profitable product.
We all know this thing that every single product of Apple along with iPhones is expensive. So today we will know about this Why iphone is so expensive.
Some people believe that Apple is just playing the game of Monopoly. But this is not 100% true.
Below we know Why iphone is so expensive ?
10 Reasons why why iphone is so expensive
When Steve Jobs came back to Apple Inc., the condition of this company was very bad. Most of the Apple products were declining for 5-7 years in a row.
At that time Dell and IBM were the competitors of Apple. And Apple started losing market share in the case of personal computers.
Then after that Steve Jobs started bringing new products which became the symbol of social status of the people. In this way Apple is different from other companies.
Then Apple started providing premium quality computer (iMac) people at an expensive price.
2. Research and Development Cost
According to the report of Apple Insider, spent $10 billion on research and development in 2018.
And Apple spent $11.58 billion on research and development in 2017.
To maintain the expenses incurred in this research and development, the price of Apple’s products increases.
And other companies, on the other hand, spend much less money on research and development.
3. Product Line
We have done research on this topic on the basis of many sources.
Around 60% of Apple Company’s Revenue comes from iPhone only. So this means that the company is heavily dependent on iPhones.
But this does not mean that it is the only source of income for Apple. Apple is currently a Trillion Dollar Company. Apart from iPhones, Apple has many sources to earn money.
But still 60% is a very big number. Because of this the price of this product is so expensive.
4. Profit Margin
Apple’s profit margin in iPhone is 60%. This is a very big number for any Smartphone company.
For example, if we bought iPhone X for $ 1000 then Apple’s profit would be around $ 600 in it.
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Why iphone is so expensive
5. Closed System
Each of Apple’s products has its own Closed System. This means that the operating system of Apple (iOS and Mac OS) cannot run in any other non-Apple device.
So we can assume that it is in the DNA of Apple.
Due to having a closed system, a lot of expenditure is incurred in research and development.
Apple’s devices have world-class security software.
Windows, Android and Linux operating systems have not yet been able to beat Apple’s security level.
No operating system can beat Apple in terms of security.
It provides more security than any other system. That’s why they sell their products very expensive.
7. Premium Look
The company believes that if people are ready to pay the most expensive price for their products, then it is important that the products should be premium in appearance.
Even if we give an example of any old Apple products such as iPhone 5s, even then iPhones seem to be much more premium than other phones.
8. Apple Tax
Apple’s Brand Loyalty is very good; they know very well how to sell their other products to their old customer. The price of Apple products is very high.
This is what we call Apple Tax. Apple’s Mac Pro display costs $5000, and its stand is sold for $1000.
All these premium amounts are part of Apple Tax. Another part of Apple Tax is how they handle storage.
If you want to increase the storage of any of your Apple products, then you have to buy more storage from Apple. The more storage there is in any of Apple’s products, the more expensive those products are. Apple products are much more expensive than any other company.
Apple’s accessories are also very expensive. Apple’s premium keyboards cost up to $129 and a premium mouse costs up to $79.
9. Amazing Apple Stores
Apple has Iconic Stores around the world, where they sell their devices.
All these stores are not only in America and not only in Europe, but their stores are spread all over the world.
To increase the value of its brand, Apple spends a lot on all these stores. Some stores are present in many premium cities.
One of the best examples of this is Apple’s floating store in Singapore. And this is one of the most attractive stores of Apple.
Another Apple store is present in Oudong, Shanghai, China which was featured in Architect magazine.
Apple’s list of stores is huge. Apple has more than 500 Iconic stores worldwide.
So the cost of running all these stores of Apple is recovered by Apple from its customers only.
10. Apple’s Competition
Apple has many competitors such as Huawei, Samsung, Oneplus, Xiaomi, Vivo etc.
But the name of Apple is definitely there in the list of best selling products such as iWatch, MacBook, iPhone etc. It is one of the best selling Smartwatch, Laptop and Mobile Phones.
Apple’s revenue is also much higher than the rest of the company.
Apple spends a large part of its revenue on research and development, so that they always present new technology to the world.
All these things are a bit expensive to manage, and for this reason Why iphone is so expensive .