Sometimes we may wonder, why are Apple products so expensive. For instance, it was found that the building cost of an iPhone 11 Pro is only $400, but the retail price is $999. Besides, the building price of a 3rd generation iPad is only $366, but it cost you $699 to bring it home. Here are some reasons.
1. Brand value
Since the first iPhone appeared, Apple becomes famous, and it successfully established its brand. Everybody knows what Apple is, everybody wants one iPhone. Most of the people in the world are not buying the phone or the laptop, they are buying a luxury brand image. Especially, when people these days don’t mind paying more money for a brand logo.
2. Research and development
Apple not only spending money on materials and manufacturing. What is behind the manufacturing, is a large amount of research and development. Apple spends a lot of money on searching for innovation, which requires lots of money to hire a researcher and pay research fees.
3. Proprietary software
If you have noticed, Apple is famous for its unique software, IOS. Apple itself owns the proprietary of IOS. But it also means that Apple has to develop and maintain the software by themselves. Other than IOS, there are MacOS, iCloud and iMessage… the operating costs are one of the reasons why your iPhone is so expensive.