Cook has addressed a frequently asked question that many consumers find themselves asking on a regular basis: Why are Apple goods so expensive? His blunt answer that Apple wants to sacrifice quality in favor of price served largely to reinforce his point that Apple values superior products above everything else. But is this always the case? In fact, in some cases, it is often better to buy cheaper goods, but that doesn’t mean you have to buy them from the largest company in the world. As long as you don’t mind paying more for something, then you can certainly afford to buy a lot more of whatever it is you want.
There is a simple reason why iPhones and iPads are priced so high. It isn’t just because Apple knows it will sell them for a long time to come. Rather, it’s because these products are mass-produced. The majority of the company’s profits come from the sales of these devices rather than from their manufacture. Because they are mass-produced, Apple can afford to charge such high prices for them.
But why are Apple goods so popular with international customers? The answer lies partly in Apple’s marketing of its products in foreign markets. While it has not been able to recreate the magic of TV adverts in the UK or the massive commercial presence of its competitors in the USA and UK, it has nevertheless capitalized on the ever-growing popularity of its devices abroad. And despite ongoing patent infringement lawsuits, including one from Samsung, the iPhone is still very much a top seller in foreign countries like China and India.
But that’s not the end of the story. Far, from it. Apple is still making amazing technological strides forward. It has also, unfortunately, encouraged the widespread practice of buying a new phone every year. In many parts of Asia for instance, people buy an iPhone and keep it with them as a backup or as a “work” phone used when they need it most.
And so, the question arises. Why aren’t cheaper, slimmer phones available? The answer, of course, is that there are just not enough of them in the market. Samsung and LG, two of the biggest names in the industry, have very large research and development budgets. Apple simply does not. This has led to the company’s reliance on its devices for marketing – and this dependence could spell the company’s eventual failure.
However, this is not to say that the iPhone and other Apple products are beyond competition. Far, from it. They remain very popular with consumers all over the world, especially in high-income countries where access to modern technology is especially restricted. One such device, the Amazon Kindle, has proven to be very successful in the eBook reader market. In fact, eBook readers such as the Amazon Kindle are becoming more common in the Western world.
There is no doubt that competition from Android devices is fierce, but Apple’s market share is unassailable. The Kindle and other eBook readers are relatively weak when compared to the iPhone and iPad. Even with the iPad’s huge global appeal, there are very few places where you will find an iPhone (or an Android device). So why are Apple devices so much more expensive in the foreign markets?
The simple reasons are simple. They are the products of a company with a built-in vision of the future. They are almost impossible to duplicate and so the brand equity that they have built up means that they can charge high prices in order to keep their position in the market. While it is true that low-cost devices do exist, the iPhone and iPad are clearly the leaders when it comes to value for money.