I mean I could understand why the original iPhone and Macintosh were pricey. Hello Friends..!!! Can We Harness Electricity From Lightning? 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. report. There’s a fair amount of overhead that goes into the design, materials, and construction of each product manufactured. No doubt, Apple is an expensive deal but we can’t really complain as it has its unique audience. Supply for the carefully chosen components can become a constraint, and if the supply cannot keep up with the demand, the prices shoot up. But I think quality & design makes them far better than others. They would nearly wipe their competition out and still be the most valuable company in the world!! Oracle billionaire Larry Ellison has moved to Lanai, the Hawaiian island he's spent half a billion dollars developing. Let’s start with the obvious answer: you are paying some percentage just for the brand reputation. competitors build more feature-packed products for way low prices and they are selling very well Sawhney: So, all our products become an extension of our personality. Visit Business Insider's homepage for more stories. Times Syndication Service. I'm probably getting two, man! They were category defining devices, but nowadays plenty of other manufacturers are rolling out do-it … Well I've always noticed that Apple products on the USA Apple store website is cheaper than the Apple product on the UK website. Pathetic to the point that their market share has now slipped to less than 2%, has become completely irrelevant, and the primary reason there is that the price points are simply unaffordable for the Indian market. hide. Why Do People Clink Their Glasses Before Drinking A Toast? What a Baby Learns While Still In The Womb? Hence, another reason why Apple products are expensive is that premium pricing helps the company promote and sust… Lv 4. we respect your privacy and take protecting it seriously, Updated on: 13 Dec 2019 by Hussain Kanchwala, What is the Heisenberg Uncertainty Principle: Explained in Simple Words. What are Glial Cells: Definition, Types, Functions of Glial Cells | Role in Psychology. Delhi AQI in severe category, to deteriorate in coming days, No need to impose night curfew in Karnataka for now, says Chief Minister B S Yediyurappa, AstraZeneca's Fasenra gets regulator nod for launch in India for asthma treatment, CBSE board exams 2021 will not be held till February, says Education Minister, Reliance Capital asset sale: SBI Life and Apollo join the race, nearly 70 bids received so far, Master Business Fundamentals from Wharton. Many Apple product prices are rising faster than inflation — faster, even, than the price of prescription drugs or going to college. "I value elegance, I value design, I value simplicity, I value, 'It just works.'" The 256 GB MacBook Air, for example, costs $1,299, but you can get a more powerful Windows laptop for over $100 less. When Apple released its new model, the price increased by 60%. 1. 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. He is a tech aficionado who loves to explicate on wide range of subjects from applied and interdisciplinary sciences like Engineering, Technology, FinTech, Pharmacy, Psychology and Economics. What Would Happen if Lightning Struck Your Airplane In Flight? Sawhney: Apple does something else that's a bit sneaky, which is that when you're buying the iPhone, you can't add memory to it. Like its $129 keyboard or its $79 mouse. A company cannot simply sell expensive products, especially if it operates within a very competitive market. Relevance. Favourite answer. Apple doesn’t want to dilute the premium image of its brand by offering ‘cheap’ products with lot of compromises. This applies to bigger products like iPads or MacBooks. Sharing Knowledge Makes You Look Cool. From Pyramids To Skyscrapers: History Of The Tallest Buildings. 3 months ago. Why Are There Stones Along Railway Tracks? If you’re like me, this happens every time you visit an Apple store!eval(ez_write_tag([[580,400],'scienceabc_com-medrectangle-3','ezslot_1',169,'0','0'])); Now, I can understand the first iPhone or the first Macintosh being expensive, as they were “category-defining” products. 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. Bringing in huge profits for Apple. Sawhney: The components that go into making a smartphone are fairly standardized. save. Apple does offer cheaper models, like the iPhone 11 or the 11-inch iPad, but those aren't always the models customers choose. But Cook also addressed a question that most consumers find themselves asking regularly: Why are Apple products so expensive? The price is that high because of its lack of competition. Having said that, I do not mean to say that Apple products are just overpriced junk. You guys may think that apple company makes lots of profit from their product and so do I. but after using apple products and doing some research I find that there are some reason why apple products are expensive and customers are willing to pay that price. Times Internet Limited. This gets added to the price of Apple products. 3 months ago. 45% Upvoted. There are several factors that combine to make the Airpods expensive. Are Giant Insects Larger Than Humans Possible? Marco Pierre White Jr.: I've been here about 36 hours now. This is unlike Android, which is open source, wherein manufacturers get the operating system free from Google and tweak it slightly to match the hardware they intend to use it for. Apple ke products itne mehenge kyu hain. 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. 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. With that being said, it doesn’t mean that Apple devices are ‘crash-proof’ or immune to attacks from viruses and malware. Pcs are priced lower because many companies make them so theres competition for price. 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. Why Are There Stones Alongside Railway Tracks? This is different than a Windows PC, wherein you have the liberty to choose and buy software that matches your requirements. What Really Happens When A Bird Hits An Airplane? Subscribe to our mailing list and get interesting stuff and updates to your email inbox. Circle Of Willis: Anatomy, Diagram And Functions, Coefficient Of Restitution: Definition, Explanation And Formula. A Smarter Look. Copyright © 2020. What Would Happen If You Shot A Bullet On A Train? The retails stores also add their profits to Apple products which make the products quite expensive. share. Why Does Your Facial Skin Appear Greenish After Shaving? - They are expensive because they know we will buy all of their things no matter how expensive it is. Apple has kept its proprietary lightning connector while removing useful ports, like the headphone jack and the SD card reader, forcing consumers to buy expensive dongles like its $39 SD-card-to-USB-C reader. Narrator: But this strategy might not work forever. Despite the cheap price, it didn’t go down well with customers. Yes, Apple has been recently stepped into more reasonable products like $330 iPads and iPhone SE. Apple is the only company that makes mac. What Is The Huntsman Spider? As the US's first trillion-dollar company, Apple's market cap is higher than the GDP of Switzerland. Apple’s supplier Foxconn is reportedly set to invest 1 billion dollars in India to expand its factory and Wistron is also pushing for India expansion. Let’s dive into the world of Apple to find out why its products are so expensive. Eh. Josh. That’s why Apple hasn’t been able to open stores and manufacturing plants in India. Apple loves to talk about its innovation. 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. Competition with less-expensive Android phones has gotten steeper, and that's put the iPhone's market share at risk. Apple has reported a profit margin between 30%-40% over the years in their annual reports. Man, I'm super excited, I'm not even going to lie. Especially after the launch of the original iPhone, the company has been more focused on design, functionalities and component quality than the consequent cost. Narrator: But Mohan pointed out that Apple has a disadvantage compared to true luxury brands. This is because experts reckon that an integration of software and hardware—the case with Apple—allows for optimal performance and reliability with less susceptibility to malware. However, Apple needs to develop and maintain iOS, MacOS and back-end services like iCloud and iMessage all by themselves, which also elevates their operating costs. Divine_Aura. Apple products with huge price tags. Apple product prices, why are they so high, and why are people willing to pay those prices? Three years later, Apple's flagship iPhone cost 54% more. However, these days, many other manufacturers are releasing powerful smartphones and slick laptops at a fraction of Apple’s price, so how can Apple still sell products at significantly higher prices? Narrator: That premium is also known as the "Apple tax," or paying more simply because it's an Apple product. The first is that they’re an Apple product and the brand does not manufacture cheap products. First, let’s look at what some Apple products currently cost: Answer Save. … If they are so popular why cant Apple just drop the prices. Even Apple's cables cost more. So, the question remains, how does Apple still justify charging a premium for its products? All rights reserved.For reprint rights. Check out | Android vs iOS. Why Do You Warm Up Your Muscles Before Exercise? P2. And adding memory or storage to these products increases the cost even more. In this article, we going to find out the reasons behind the expensiveness of the Apple's products. For example, Sony competes with Apple in smartphones, but all of the camera sensors that go into an iPhone are made by Sony. Apple had to do this because competitors build more feature-packed products for way low prices and they are selling very well. They sell their products in India through various retails stores. 8 8. comments. All these put together mean that Apple products are not cheap to produce. But why do Apple products have this reputation for being so gosh darned expensive? 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. Similarly, when you make a purchase in the App Store, that app will work on all your Apple products without the need to pay any additional fee. Apne aam taur par dekha hoga ki android ke muquable Apple ke products bahut mehenge hote hai. A basic Windows PC without additional software can be bought for a fraction of a price of a MacBook. | HERE U GET why apple products are expensive in india why are apple products so expensive reddit are apple products worth it apple store why are macbooks so expensive 2018 why are apple iphones so expensive why are apple laptops so expensive why is mac cosmetics so expensive How Big Is It and Does It Bite? Sawhney: Apple's performance in India is pathetic. So what makes Apple products so expensive? Bringing in huge profits for Apple. So, the next time you wonder why Apple products are so expensive, you know the reasons. What Is The Fibonacci Sequence? Can't wait to get my hands on mine. Narrator: In 2016, the iPhone 7 started at $649. 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. chaliye mai b atata hu ki,Why Apple is so expensive. ‘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. Here's how Ellison bought 98% of the island and turned it into a sustainability experiment. It’s also a no-brainer that Apple is very careful about selecting the components for its products. Science Behind Sleep Paralysis: Why Can’t We Move Our Limbs In Sleep? In addition, they spare no expense when it comes to marketing. And adding memory or storage to … This makes owning an Apple device a more fulfilling and rich experience; as a result, customers don’t mind paying extra for Apple products!eval(ez_write_tag([[300,250],'scienceabc_com-large-leaderboard-2','ezslot_9',172,'0','0'])); Hussain Kanchwala is an Electronic Engineer from University of Mumbai. 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. It's even more dramatic for the Mac Mini. And that is what inspires a lot of loyalty and allows Apple to extract a premium for their products. What is Quantum Entanglement: Explained in Simple Words. 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. Why are Apple products so much more expensive in the UK? But are these products worth the premium? Apart from technical aspects, people who buy Apple products feel better and smarter than any other brand. Let’s start with the obvious answer: you are paying some percentage just for the brand reputation. And Apple's accessories also have high premiums compared to non-Apple products. Because of this "Apple Tax," Apple products are often more expensive than competitors, bringing in huge profits for Apple. Why are Apple products so expensive? By comparison with other electronic products, the apple’s product is always the most aesthetic appearance of electronic products … Apple products come with their own proprietary software, which is owned and maintained by Apple. So if you want more memory, you have to pay more Apple tax. Apple has been successful in establishing itself as a “lifestyle brand” that can get away with charging premiums for products simpl… And I know that you have to consider tax and the difference between pounds and dollars. 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... And adding memory or storage to these products increases the cost even more. Why Is It So Special? Narrator: That means the customers who buy the iPad Pro or the $5,000 iMac Pro. This thread is archived. The failure of iPhone 5c has served as a strong deterrent for Apple to not venture again into the low-end product category. 12 Answers. 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