Apple is renowned for having high-quality hardware and software. Their devices are made from aluminium and carefully engineered to be durable and powerful. Software and applications are created to take full advantage of Apple hardware, resulting in a high-quality user experience. The result is that Apple products are expensive, but you can be sure that you are getting the best outcome possible.
Why are Apple products more expensive than other brands
The cost of Apple products is higher than most other brands because of several factors. These include the whole ecosystem of Apple products, privacy policies, and increased marketing costs. Despite these costs, Apple products are also known for their superior quality and unparalleled experience. Besides, they also tend to resell well.
The manufacturing process for Apple products takes place in many countries, including China and Taiwan. Moreover, Apple has retail stores in 24 countries, including Japan. The price of Apple products in Japan is comparable to those in the US. For instance, Japan’s iPhone 12 Pro Max (128GB) costs 117,800 yen. This price includes the country’s 8% sales tax. The price can fluctuate depending on the exchange rate.
While Apple used to sell their products at fixed prices for years, it is now changing its pricing strategy. Previously, the company rarely offered sales or discounts. In addition, Apple has been clearing out older products to make room for new products. This allows them to price their products higher to cover advertising and marketing costs.
Reasons for the higher price
People are often confused as to why Apple products are so expensive. The answer is that Apple spends a lot of money on research and development and has an extremely strong brand name. As a result, consumers are willing to pay more for an Apple product than another company’s similar product.
Apple has an ecosystem different from other companies and only works with other Apple products. According to MKBHD, this ecosystem is one of the biggest reasons the company can charge so much. Apple believes that customers will be more satisfied with the product if it works well with their other devices.
The company sells millions of products every quarter, generating huge profits. However, it could sell more devices if its prices were lower. This would help the company improve its financial performance.
Apple took steps to make its products more competitive in India.
While Apple has taken a few steps to make its products more competitive in India, it still faces a few challenges. One of these is the high cost of its products. In India, 75 per cent of cell phones sell for less than $250, and basic mobile phones dominate the market. Last year, the import tax in India increased from 15 per cent to 20 per cent, which hurt Apple’s business.
Apple’s strategy to increase its market share in India includes investing in new technology and developing unique products that stand apart from competitors. The company also invests in popular media to get its products in front of customers. The product placement helps consumers associate the device with role models and make the product feel more relevant.
Apple’s market position is impacted by the industry competition and the bargaining power of buyers. However, the company’s innovation and brand loyalty have helped it succeed.
Moves took by Apple to make its products more competitive in the U.S.
Apple’s marketing strategy focuses on leveraging price and brand recognition to create demand for its products. It offers retailers a modest wholesale discount on its products, but not enough to make them cheap. Therefore, customers end up paying close to MSRP. While Apple could give up a little profit margin to make its products more competitive, it chooses not to.
The company is attempting to expand beyond the iPhone and iPad and is considering new services such as bank accounts. It entered the credit card business late but has an established client base. The company has made its mark by offering Apple Pay, which is accepted in nearly 70% of U.S. stores and is expected to be available in 40 countries by the end of 2019
Apple’s vertical integration strategy has yielded enormous benefits. By controlling the software and hardware, the company can better leverage the relationship between the two. Moreover, apps are tightly controlled to conform to the company’s policies. Apple has also increased its investment in research and development. In 2019, the company spent $16,217 billion on R&D, accounting for 7.9% of its total revenue.
Owen Ingram is a research-based content writer, who works for Cognizantt, a globally recognised professional SEO service and Research Prospect, a Servizio di redazione di saggi e dissertazioni. Mr Owen Ingram holds a PhD degree in English literature. He loves to express his views on various issues, including education, technology, and more.