A common joke is that to know if someone owns an iPhone, it is enough to see the number of his kidneys. Because he could not buy an iPhone without selling his kidneys, the question may arise about how people can have fun with such an essential organ as the kidney.
However, I hope no one will question that the iPhone is more expensive than the other ten smartphones with the same benefits.
According to a report in the India Times, Apple has spent an estimated 408 on the back of the iPhone 12 smartphone. But each of them is sold for 999. The whole gap is no longer Apple’s profit.
There is the cost of research; there is the cost of marketing; there is the cost of creating software, the cost of running Apple as a whole is all included in the product’s price. However, here are the five main reasons behind the high price of the iPhone.
1. Apple products mean luxury
Apple’s only target in selecting potential buyers is the elite. However, there is a ‘premium’ feeling in the products made by Apple. Anyone who uses Apple products like the iPhone gets a chance to take part in that lifestyle now. If everyone uses a premium brand, where is the opportunity to use the word ‘unique! That’s one of the reasons Apple’s products are so expensive. Even when Apple’s relatively low-priced iPhone SE came on the market, its price was not less than Rs 50,000.
2. Large expenditure on research and development
Apple has everything from the very beginning of the iPhone. Other smartphones already have a feature, but it is tested hundreds of times before being added to the iPhone. Apple started working with its hardware and software before adding any benefits to the iPhone.
Then make sure it’s compatible with Apple’s ecosystem. Apple is one of the top three smartphone brands, despite the high price on research and development. And the massive amount of money eventually became one reason for the increase in the iPhone price.
3. Apple is part of the ecosystem
Apple’s products work seamlessly with one another. For example, when reading an article on a website on the iPad, the user can read the article on his iPhone. And not just hardware; software can adapt quickly. iPhone, Mac, Apple Watch, iPad, iTunes — everything can be easily combined. It is also easy to exchange information between devices. This feature is rare in the Android and Windows ecosystems. That’s probably why IT professionals prefer to use Apple products.
4. User-friendly software
Google made the Android operating system. Smartphone manufacturers can use it with a license from Google. In some cases, they arrange it as they like. In the case of Android, there is an opportunity to distribute the cost of essential components such as software between multiple organizations.
On the other hand, the iPhone’s iOS operating system only uses Apple. Apple makes everything. The cost of creating the software is to be borne entirely by Apple, with no opportunity to share it with other organizations. That went in one direction.
Another thing is that once they start using the iPhone, they can never give up because Apple spends a lot of research and development to make the iOS operating system user-friendly. He finishes on each iPhone.
5. Apple Store worldwide
The company’s stores are called Apple Stores to deliver Apple products to customers. Although not in Bangladesh, there are excellent Apple stores all over the world. In most cases, they are located in the best places in the city. Their architecture is also amazing. The company invests heavily in the Apple Store. But who pays for the investment? That customer.
Apart from this, Apple has to meet many other expenses. For example, suppose a court in a country imposes a fine on Apple. In that case, that cost is also associated with the average sale price of the product. Again, the calculation of customs and taxes across the country has to be kept in mind. Apple spends a massive amount of money on marketing. Apart from that, as the iPhone parts are pretty high quality, there are also wages for making them. Excluding all costs, the rest is part of Apple’s profit.