Before even beginning, there is one thing that I
need to make clear. I personally use an android phone and am someone who really
enjoys the freedom of android platform to its fullest. Still I think the high price
tag apple demands is justifiable. The latest addition to the
iPhone line up, iPhone 6 will also follow the tradition of
bearing a steep sticker price off contract . But what exactly is the reason
behind this? Is apple charging a fortune just to tap into the human mindset
that “anything expensive = top quality” without delivering? Let us analyse the
facts
Number game
Think about it, android is shipped in millions of devices
made by an army of OEMs on an everyday basis. Whereas IOS is available only on
Apple devices. Still it’s Apple products that brings out a trend that everyone
else follows. Remember retina screen, touch id etc. it’s simple maths, cost of
an individual copy of a product is given by, total development cost divided by
the number of devices shipped. The overall number of android devices is much
more than IOS devices.
Early adopter disadvantage
When we are bringing a new tech that no one else currently
uses, it inherently raises the cost. It is, because usually the designing and
manufacturing of such products will not be based on industry standards. And
it’s a well known fact that non standard means serious costs. Best example being the lightning connector. It has its advantage but is not a standard followed by any other manufacturer.
Acquisition spree
Apple is like a big fat hungry whale. It will swallow
other start-ups like they are living on that diet. The number of start-ups they
have acquired is not known because Apple won’t talk about it. Even the flag
bearer feature of iPhones, Siri began its life as a startup. All this sucks up
the cash reserves.
Unadulterated attention to detail
Apple products are famous for their build quality. It’s
perhaps the most important weapon for iFans against Fandroids. The perfection
comes with expensive tools and this would hike the price.
Premium brands demand premium prices. It’s as simple as
that. But in this case you can justify the price. Just think of the fact that
the hardware and software is made by the same company and is in perfect sync. The
attention to detail goes to such extremities that Apple buys its component
manufacturing companies inorder to maintain the stringent quality standards Apple
strives for. Last example is the purchasing of Safire manufacturing companies
for their upcoming iPhone 6 displays. I hope I gave you enough reasons to burn
a hole in your pocket when the iPhone 6 releases. Feel free to comment.
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