The Apple iPhone is seen to cost much higher when compared to other mobile phones. Each time, Apple announces a new version of the iPhone, Apple followers prepare a strike on their wallets. When the iPhone 5 was released, it costs more than the other brands, but still it sold out just within seconds of launch.
According to a recent data from the Consumer Intelligence Research Partners, iPhone users do spend more on mobile phone service than other smart phone users. Compared to other Android users, iPhone users spend over $100 on their phone bills. Overall, iPhone users have a more expensive data plan as compared to other mobile phone users. So why is an iPhone more expensive as compared to other mobile phones?
Let’s look at the possible reasons why the iPhone is priced more than other brands of mobile phones.
Apple gives each product a “manufacturer suggested retail price “or MSRP.
MSRP is the suggested retail price for its network of distributors. Most manufacturers do this and retailers are free to set its selling price. Like for example, a 16 GB iPhone may cost around $649 to buy directly in the Apple Store. Different iPhone carriers such as AT&T and Verizon Wireless sell the 16 GB iPhone from Apple at around $199. It’s priced cheaper but iPhone users need to pay a monthly contract. iPhone carriersplace their prices as suggested by Apple, required profits, manufacturing cost and more.
Apple also doesn’t need to rely too much on other retailers to sell their phones. Apple has its own Apple Store and they embrace a unique and strong pricing strategy that makes its product a hit even if it is priced high. Apple makes more money when users buy directly through them but the prices are not too low that it competes with resellers. Cellular phone service plan does offer the iPhone much lower plans than its actual retail price. In exchange, consumers do have to buy it alongside with a plan. With the plan that iPhone customers purchased, the iPhone carrier will profit from the sold iPhone.
Apple can sell the iPhone at any price because consumers like the product.
Apple is heavily advertised as sleek, light-weight and beautiful. It has an iconic style that is many Apple users love. Apple also offers more apps as compared to selection from Windows or Android phones.
The iPhone also contains features that many will like.
With each new version of the iPhone, its technology is also increasing. Like for example, the iPhone 5 has a brand new high performance processor and a waterproof technology. The iPhone’s technology is worth the price and it gives consumers total satisfaction. It certainly is worth the money!