5 Reasons Why iPhone is so Expensive

iPhones today are the status symbol of all. With their sophisticated looks, newest technology, and best features, iPhones are in line with outlandish prices. Even the old adage is that to determine if someone has an iPhone or not, it is enough to know how many kidneys he possesses. Because he would not be able to afford an iPhone except for selling his kidneys. This is a joke that shows how iPhones cost so much more than any other smartphone with the same features. But do you ever wonder why iPhones are so expensive? 

Here are 5 reasons why iPhones are so expensive:

The first reason why iPhones are so expensive is because they're luxury. Apple has always intended to go for a high-end market, aiming at the customer who is willing to pay more for their product. Apple products are also entwined with some exclusivity and prestige that differentiates them from the rest of the companies. When one purchases an iPhone, they are not just purchasing a phone; they are investing in a lifestyle of luxury that can only be attained by a section of the population. Even Apple's relatively cheaper iPhone SE was priced below $600 when initially released, which is way above what other companies are offering for mid-level phones. 

The second reason the iPhones are so pricey is the massive research and development cost. Apple invests a huge amount in research and development to incorporate newer and latest technologies into their devices. Apple has been trying since the beginning to design their own hardware and software, and not rely on third-party suppliers. This allows them to have more control over design and operation of their products. Apple iPhones are thoroughly tested and optimized before their release into the market, which guarantees that they are of utmost quality. The cost of all this development and research eventually gets passed on to the consumer, so iPhones are more expensive than other phones. 

The third reason iPhones are more expensive is that they are an ecosystem. Apple devices work well together, so customers can transfer information between their devices with ease. For example, if a person is reading an article on an iPad, he or she is able to switch over to iPhone and continue reading from where they left off. The kind of hardware-software harmonization that this facilitates is not usually found in other operating systems, such as Android and Windows. The ease and convenience of all Apple devices harmonizing well with one another make the company a sell big time.

The fourth reason for the expense of iPhones is the user-friendly software. Apple's iOS operating system is user-friendly and easy to operate. Apple spends a lot on research and development so that the iOS operating system is user-friendly. The expenditure on software development is another expense which is transferred to the consumer. Conversely, Google's Android platform is an open-source operating system and can be utilized by any organization that produces smartphones. This allows organizations to divide the cost of software development among different organizations and Android smartphones become cheaper than iPhones.

Apple's international stores are the fifth and final reason for iPhones' such expensive prices. Apple stores, by name, are located all over the world, in the most accessible places within the city. They have stunning architecture and are designed to offer the customer the best shopping experience. Apple spends a fortune for their stores, and that is yet another cost passed to the consumer. Besides the cost of the stores, Apple also has other costs such as duties and taxes remitted in other countries, wages for producing good-quality iPhone components, and advertisements. It needs to be understood that the cost of an iPhone is not just Apple profiting. There are various costs of production of a quality product, and all those costs are passed on to the consumer. While the iPhone costs a lot of money, it's because Apple is committed to producing a better product and providing the consumer with a feeling of luxury.

All in all, the iPhone costs a lot of money due to various reasons such as Apple's prestige brand, research and development emphasis, ecosystem, simple software that is easy to use, and its investment in stores all over the world.

All these considerations are to be instituted in order that the iPhone be an upscale, premium phone which people will pay for. Apple might charge an iPhone a price that is extortionate, but one also has to take into consideration that it is what Apple has spent on its products and what experience it is able to provide them with.