why iPhone is expensive: The Five Reason Behind it
Let's find out why iPhone is expensive: The Five Reason Behind it.
According to a report in the India Times, Apple's cost behind the iPhone 12 smartphone is estimated at 40 406. But each of them is sold at 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 price of the product. However, here are the five main reasons behind the high price of the iPhone.
1. Apple's product means luxury
Needless to say, 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 Apple's relatively low-priced iPhone SE was priced at less than Rs 50,000 when it hit the market.
2. Large expenditure on research and development
Apple has everything from the very beginning of the iPhone. Other brands of smartphones already have a feature, but it is tested hundreds of times before being added to the iPhone. Apple started working with their own 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 it spends on research and development. And the huge amount of money eventually became one of the reasons for the increase in the price of the iPhone.
3. Part of the Apple 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 if he wants. And not just hardware, software can adapt easily.
IPhone, Mac, Apple Watch, iPad, iTunes — everything can be easily combined with one another. 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. Use-friendly software
Google made the Android operating system. Smartphone manufacturers can use it with a license from Google. In some cases, they arrange it like themselves. That is, in the case of Android, there is an opportunity to distribute the cost of important components such as software between multiple organizations.
On the other hand, the iPhone's iOS operating system only uses Apple. Everything is made by Apple. That is, the cost of creating the software is to be borne entirely by Apple, with no opportunity to distribute it among 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. At the end of the day, he spends on each iPhone.
5. Apple Store worldwide
The company's own 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 excellent. 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, if a court in a country imposes a fine on Apple, 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 huge amount of money on marketing. Apart from that, as the parts of iPhone are quite high quality, there are also wages for making them. Excluding all costs, the rest is part of Apple's profits.