You get an iPhone! You get an iPhone! Everybody gets an iPhone!
Not so fast.
iPhones are expensive, not everyone can afford them.
But have you ever wondered why are iPhones so expensive? This article will break down why you pay so much for an iPhone.
The Cupertino, California-based company has recently hit another historic milestone when they became the first U.S. company with $1 Trillion Market capitalization. With the continuous increase of the iPhone price, Apple could potentially reach $2 Trillion Market cap in the near future.
The company has sold more than one billion iPhones, which makes the iPhone the most popular gadget on earth. Thanks to its exorbitant price, each quarter iPhone sales contribute largely to the company’s revenue.
Why are iPhones so expensive?
iPhones were always expensive compared to other smartphones. If you take a look at the iPhone evolution, you’ll get an idea of how expensive an iPhone is and how its price has gradually increased over the years to the point that it now costs more than $1k.
In fact, it’s not just Apple, many other smartphone manufacturers are charging absurdly high prices for their phones. Think about the latest flagships from Samsung, Google and Huawei Galaxy, you’ll have to spend a fortune to afford any of them.
Making a premium smartphone or any product requires premium components. And the iPhone is no exception. iHS technology has concluded that iPhone’s components are roughly worth double the cost of Android phones components.
Now an iPhone packs mind-blowing specs. The device has better display, new Face ID technology, faster processor, multiple cameras, wireless charging etc, which certainly requires a higher budget to engineer and get all these specs packed inside a small hardware.
Honestly, most iPhone buyers don’t really care about specifications. Whenever a new iPhone comes out, they’ll upgrade regardless of the high price tag. They are loyal to the brand, which is why Apple can charge whatever they want for an iPhone and get away with it.
Another reason why iPhones so expensive is, Apple designs and engineers not only the software but the hardware, which drives the cost of the phone up. The seamless integration of the iPhone and iOS provides a better user experience. Other smartphone companies – like Samsung – only need to build the hardware and use Google’s Android operating system.
When you buy an iPhone, you’re part of a vast ecosystem, and automatically have access to everything Apple. You don’t need to worry about software updates, whenever a new iOS rolls out, all eligible iOS devices will get it. Apple’s ecosystem is also what prevents its loyal customers from switching to Android.
However, it’s a completely different situation for Android. There are hundreds of different Android phone models. When a new version of Android comes out, only a few of them will actually get it. In addition, each Android phone manufacturer needs to customize the software in order to make it work better on their phones. In addition, wireless carriers have to load the software with their apps, before making it accessible to the users, something Apple prohibits on the iPhone.
Apple has by far the best customer support than any other smartphone company. If you live in the U.S, there should be an Apple store near you for all your inquiries. You don’t live in the U.S, check Apple’s website for a list of Apple stores in the world. Your country is not listed, don’t worry in-store experience is as great as online’s.
All those physical retail stores cost Apple money to maintain and pay the employees. Part of the iPhone price goes to that budget.
If you take into account all those factors, you’ll realize the iPhone is worth every penny Apple is charging you for. But if your judgment is based on those iPhone teardown articles on the internet – that only elaborate the component prices without taking into consideration any of these factors – you’ll be convinced that the iPhone is a rip-off.
The bottom line is, Apple offers more than other phone manufacturers. When you buy an iPhone, you buy high-quality, security and privacy, friendly user experience, excellent support and help.
So over to you. Do you think it’s reasonable to spend over $1k on an iPhone? Or do you think Apple is charging way too much for its iPhones?
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