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Why you are paying a premium for Apple iPhone


                                  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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