Mobile Phones

7 Reasons Why is Apple Phones are So Expensive.

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Apple products are so expensive, most people look forward to the launch ceremonies without expecting anything in return. That’s so sweet of them!
 
Have you ever wondered why Apple items are so expensive when compared to those from other brands? What’s the difference between an iPhone and a Mac?
 
Once an Apple user, always an Apple user, as the saying goes. No. I’m not referring to the adolescent who has no understanding of why they need an Apple product. They’re a bunch of knuckleheads that only want that logo.
 
I’m referring to professionals and business people in the actual world. Why do the majority of these professionals own Apple’s whole ecosystem?
 
Is the pricing of these iPhones truly justified? Why is it necessary for this corporation to raise its pricing so dramatically?
 
Even if Apple makes a lot of money, there are a few aspects that almost everyone overlooks. The following are the seven factors:
 

Why Do Apple Products Cost So Much? For a variety of reasons:

1] Software When comparing an iPhone to an Android phone:

The most fundamental difference is in the software. iPhones are compatible with iOS, while Android phones are compatible with Android. Google, but, provides Android with a nearly free and readily available Android OS. Meanwhile, Apple must create its own operating system from the ground up. When compared to other Android brands, this is extremely expensive.
 
Why does Google give Android away for free while Apple charges a lot? No, not at all. Android appears to be free to install on devices for both users and manufacturers. Manufacturers, but, must get a Google Play Store license to offer you the Google Play Store.
 
Android smartphone makers include this expense in the device’s retail price. People don’t want to buy Android phones without Google services if they don’t have them.
 
When Google ceased giving services to Huawei-Honor, this is what occurred.
 
According to a study by Android Authority, Huawei is anticipated to lose 20% of its market share as a result of the trade war between the US and China. Even if Huawei has the majority of the market share in China, this is a major setback for the company.
 
In other words, without a Google license, Android companies are nothing. It is less expensive to manage since Google uses economies of scale.
 
Furthermore, Android is a free and open-source operating system. There’s no reason for Google to govern Android at all. Apple, but, is handling everything on its own. As a result, they charge the users directly.
 

2] High-end lifestyle label:

Apple never advertised to the middle class or the impoverished. It has succeeded in establishing itself as a premium lifestyle and luxury brand. Every brand has a distinct market position.
 
Xiaomi, for example, is the affordable smartphone king, while OnePlus offers the best value for money.
 
Microsoft has its own positioning as well. “Bill Gates once said, “There should be a computer on every desk and in every home running Microsoft software.” Microsoft has its own target audience and techniques for reaching them.
 
Apple, too, has established itself as a luxury brand.
 
When someone uses an iPhone or a Macbook, it is automatically thought that they live a posh lifestyle. Apple even debuted their ‘budget’ iPhone, the iPhone SE, in 2020, which costs more than Rs 40,000!
 
To be honest, that was a sham in the name of low-cost smartphones.
 

3] Apple’s Iconic Stores:

Apple stores are the company’s public face. If you are a techie by nature, I strongly tell you to visit an Apple store. You will certainly enjoy it.
 
Apple Store is not yet available in India, but, it expects to be available by 2021.
 
They already started the Online Apple Store in India on September 23, 2020. Let’s take a look at how physical outlets function.
 
To get to the point, Apple spends a lot of money on its stores. These Apple stores are in the most opulent areas of the world’s wealthiest cities.
 
Almost every luxury brand spends a significant amount of money on marketing and branding. How will people perceive luxury if the brand does not take its aroma seriously?
 
In Singapore, Apple just debuted its floating Apple Store.
 
In Shanghai, China, there is yet another Apple Store.
 
There are also around 500 incredibly appealing Apple Stores throughout the world. They don’t look to be average people. The architectural splendor of these Apple stores necessitates significant development and maintenance expenditures.
 
So, who will foot the bill? You, as a customer, of course. What else could you have hoped for?
 

4] Expensive Components and Product Finishing:

Have you ever heard Steve Jobs’ anecdote about the first iPod?
Engineers working on the initial iPod prototype presented their work to Steve Jobs for approval when it finish. Jobs examined the item, inspected it, weighed it in his hands, and immediately dismissed it. It was far too large.
 
The engineers claimed that to produce the iPod, they had to reinvent creating and that it was simply impossible to make it any smaller.
 
For a little while, Jobs was deafeningly quiet. Finally, he stood up and walked over to an aquarium, where he tossed the iPod in. Bubbles floated to the top after it hit the bottom.
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It takes time, money, and patience to achieve this degree of excellence.
 
You can mock Apple for its pricing or features, but no one can match Apple’s quality and craftsmanship. That’s the authority they’ve established!
 
The IT sector has a strong belief that Apple never sacrifices component quality or finish. The components will always be reliable, no matter what. The majority of Apple’s features arrive too late, but when they do, they’re flawlessly optimized and free of defects.
 
Not only is Apple confined to premium components, but it also offers a warranty on the majority of its goods. If you have an Apple computer, you are probably aware that the company does not believe in repairs. They simply replace it at no cost to you.
 
If they charge you for repairs, you may want to consider purchasing a less expensive non-Apple gadget.
 
But, this is a rare occurrence. I generally heard Apple users talk about how they’ve had their iPhones for 3-5 years and Macs for the past ten years. It is unmistakably a sign of high quality.
 

5] Development and Research:

Not every brand invests considerably in research and development. There’s a reason Apple lists among the Big-5-Brands. As I before stated, Apple must conduct extensive research and development to produce its own goods from the ground up. “Hey, let’s copy Samsung or Xiaomi!” they can’t say.
 
Even if they wanted to, they wouldn’t be able to due to their ecosystem compatibility.
 
If Apple decides to offer a product to its customers, they must first work on their own hardware before moving on to software. This isn’t the conclusion of the story. They must ensure that the product is fully integrated into the ecosystem.
 
One example is the company’s own Safari browser. Apple was developing a Windows version. According to TechCrunch, they force to abandon the project in 2012.
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Although the reasons are unknown, it is certain that if Apple were a conventional Windows-based corporation, they would never confront this problem. But, cross-platform optimization is difficult.
 
The majority of businesses work on and complete projects only after determining the scope of scalability and expansion. Otherwise, they will stop working on it.
 

6] Ecosystem Apple has a massive ecosystem network:

The items work in perfect harmony with one another. By moving from a tablet browser to an iPhone, for example, an iPhone user will be able to view identical Internet content.
 
If your Apple Watch is synced with your iPhone, you can get calls and notifications on your Watch as well.
 
Do you have your Airpods on? There is no need to concern. Connect it to your Apple Watch and use your Airpods to select it.
 
Not only is hardware optimized, but also apps and software. Anyone who requires a high level of productivity will become addicted to Apple’s ecosystem. This is why Apple’s environment is preferred among computer pros.
 
Everything – iPhone, Mac, Apple Watch, iPad, iTunes (Music), and so on – will be connected. As a result, the data is in sync, and you are actually enjoying the wonder of high compatibility.
 

Because it is owned by two different firms, it is completely absent in Android + Windows. As a result, a discrepancy exists. People who actually need Apple for their business or personal use are those who are deeply invested in the Apple ecosystem due to its seamless compatibility.

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Otherwise, you may have a friend who owns an iPhone but does not have access to the ecosystem. So Apple understands that even if their products are pricey, consumers will still buy them.
 

7] Other Costs:

When you buy a smartphone or an electronic device, the price does not solely reflect the fixed components. There are also a handful of charges that are not disclosed.
 
A] Promotion:
Apple continues to actively promote its newly released goods. This comprises all funds allocated to print media, news media, digital media, social media, and other forms of media. Apple advertises in practically every publication.
 
Besides, social media influencers demand a high fee for influence marketing. It is done for the brand value, even though Apple does not need it.
 
B] Labor Costs :
We can’t just buy parts since the hardware has to be built from the ground up. As a result, the corporation needs labor and must compensate them. Labor expenses are low in places like India, but they are much higher in the United States.
 
C] Excise Duty :
Every product manufactured in India is subject to high tariffs. Every country has its own set of taxes. This is why an iPhone in Dubai or other nations is substantially less expensive. If you want to buy one, look for one in Dubai.
 
D] Legal Disputes:
Every Internet corporation is subjected to legal action regularly. It necessitates finances. Larger situations cause more costs. These are some of the more recent examples.
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Apple and Epic Games, the creators of Fortnite, will restart their legal battle in May 2021, according to CNET.
 
The Wall Street Journal reports that In the Siri Patent Fight, Apple is facing a $1.4 billion lawsuit in China. Apple agrees to a $500 million settlement in a lawsuit alleging it throttled older phones, according to TechCrunch.
 
First Post: In an intellectual property case, Apple loses $440 million to Virnetx Inc.
 
Apple will have to pay up to $60 million to 12,400 past and current employees at 52 Apple stores, according to the Observer.
 
E] This is merely the tip of the iceberg. Profits:
Finally, and most importantly, this is the most obvious explanation. Apple understands that even if its products remain pricey, consumers will continue to sell them. As I already stated, the two most common reasons are Apple’s branding and ecosystem.
 
Apple is such a distinctive product creator that it will continue to attract its core customer base. It is thus courageous to devour as much profit as possible.
 
So, the next time you’re perplexed about why Apple items are so pricey, you’ll know why. Apple is, without a question, a costly proposition, but we can’t really complain because it caters to a niche market.

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