Have you been looking at purchasing an Apple product but have come to realize it’s expensive compared to other brands and want to know why this is?
Well, I have been looking into the biggest reasons for Apple’s expensive prices and have the top 11 reasons why below, so read on if you want to find out what I’ve discovered about this topic!
Why Is Apple So Expensive In 2023?
Apple is expensive because it aims for higher profit margins, and has a closed ecosystem that allows for each Apple product to work better and in combination with other Apple products in 2023. Also, Apple spends a lot of money on research and development and uses high-quality components to give customers a durable and reliable final product that will last.
Do you want to see the full list of reasons why Apple is so expensive? If so, don’t stop reading because I have all of the main contributing factors listed below!
1. Apple’s Ecosystem
One of the biggest reasons why Apple is so expensive is because of Apple’s ecosystem, which involves Apple devices only connecting and working with other Apple devices.
Also, there is the fact that when you take an Apple device like the iPhone and pair it with the Apple Watch or Mac, you get more functionality out of each product.
Therefore, Apple has built up its ecosystem to work better with the more Apple products you own.
So, if you have an iPhone, you’ll want to purchase another Apple product to enhance your experience.
2. A Lot Of Money Spent On Research & Development
Apple puts a lot of its revenue into research and development, which allows Apple to constantly evolve and produce new products and innovative gadgets.
Furthermore, it’s the money put into research and development that has given Apple a competitive advantage over its competitors.
3. Apple Aims For Higher Profit Margins
Apple ensures that it meets its goals for profit margins by selling its products at higher prices than the competition, and on some devices, can reach a 50% profit margin.
In addition, Apple knows people will still purchase the devices even at expensive prices, which allows the company to pull off those higher profit margins.
4. Apple Doesn’t Sell Your Data
If you’ve been wondering why Apple is so expensive, you have to take into account that Apple doesn’t sell your data to profit off of it like other companies.
Therefore, the company increases prices to make up for this.
Also, Apple doesn’t have tracking software preloaded onto its devices like other companies, and as more people become privacy-conscious, Apple gains ground over the competition.
That being said, Apple does track you somewhat to enhance your experiences and to get feedback from users, but that information is kept private for future innovation.
Apple has to charge higher prices because its marketing costs a lot of money since Apple markets in print, digital media, social media, news media, and almost everywhere else.
Furthermore, Apple also has to pay the people responsible for marketing, including those running social media accounts, and for social media influence.
6. Free System & App Updates
Apple is expensive because it releases a huge system update once a year, is free for all users to download, and has quite a few smaller system updates throughout the year.
On top of that, Apple offers free app updates to users, and it’s the fact that Apple makes these system and app updates free for users that increase the costs of its devices.
7. Apple Is A Luxury Brand
Apple has made itself known as a luxury brand, especially since it has branched into earphones, notepads, phones, watches, computers, and other products.
Therefore, Apple is not only a luxury brand, but it’s a specific lifestyle brand, and it’s a symbol of your status to own Apple products.
8. High-Quality Hardware & Software
Apple makes high-quality hardware and software.
Additionally, no one can dispute that Apple assembles, designs, and manufactures its products carefully and with high-end components and materials.
Furthermore, when you look at the software, it will be of higher quality since it’s designed specifically for Apple’s ecosystem and it doesn’t need to be compatible with other brands.
9. Long Life Of Products
Since Apple uses high-quality materials when it makes each product, it means you’re going to have a longer product life, and people are willing to pay for this longer-lasting device.
For example, people will pay more money to get the longer life of an iPhone compared to an Android phone.
Furthermore, this is because Apple prides itself on the reliability and durability of its products.
10. People Are Loyal To Apple
One reason why Apple is so expensive is that Apple has a huge loyal following where people are willing to pay higher prices to own an Apple product, such as the newest iPhone.
Therefore, Apple doesn’t need to cut costs to keep customers since its customers are loyal and will pay that higher price regardless, and it continues to grow in popularity.
11. Apple Stores Cost Money To Own & Operate
Apple stores are an attractive and amazing sight to behold, but it takes a lot of money to own and operate these stores, from hiring employees to store upgrades and maintenance.
Furthermore, Apple stores have become a thing of beauty and Apple spends a ton of money maintaining these stores and building new ones all over the place, especially in major cities.
Apple is so expensive because it creates products with high-quality hardware and software, and it has a huge loyal customer base willing to pay higher prices just to own an Apple product.
Additionally, it costs a lot of money to maintain and build Apple stores, along with the money needed for research and development to continue being innovative. Also, Apple spends a lot of money every year on marketing, as it does this on every medium and platform available.