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22 January 2021

New iPhone - why is it so expensive?

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Many people associate the iPhone primarily with high quality, and of course, not a low price.  The question is, why is the most anticipated smartphone of the fall so expensive?  Are we overpaying for just one logo?

Eleonora Rusanovska

Apple phones are admirable.  The very essence of the traditional expectation of September 1, around the world, is surprising.  And not to take your child to school, but to watch Apple's annual presentation.  At it, the company shares the work done over the year, achievements, and presents the long-awaited, new brainchildren, thereby stimulating sales.  Think about it, gadgets have not yet been published, and there are already thousands of people who want to buy a new product.  Queues line up behind them, and stores receive additional revenue on pre-orders.

For the second year in a row, Apple phones have broken sales records for similar technology.  There are reasons for this.

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Will not be cheaper?

By focusing on the history of smartphones, several conclusions can be drawn regarding their prices.  They grow and they will never be the same.  Long gone are the days when buying a phone was no more expensive than a family trip to the shops and the supermarket.  The smartphone has become an integral life companion, which means that it takes longer to work on it.  Apple, along with other manufacturers, are raising prices, and this is influenced by a number of factors:

  • Premium materials. The most common reason for the high price tag is that Apple uses the highest quality materials.  Although an ordinary user will not be able to determine which ones by eye, comparing an iPhone and a smartphone of another brand, hardly anyone will say that the first one gives the impression of “poor quality” or even worse.  The overall price of the phone is heavily influenced by the OLED display, which has better color reproduction and deeper blacks.  Until now, iPhones have used liquid crystal displays.  This design is still present in the XR, which has been reduced in price accordingly.  In addition, smartphones are made of high-quality glass, and their frame is made of steel.

  • The cost of production also includes components and devices. According to the Cult of Mac, the cost of manufacturing one iPhone XS with 256GB of internal storage is about $ 443.  This is only 35% of the final amount set by the manufacturer at the start of sales.  Does this mean Apple's profits are so high?

  • Of course not.  It takes a lot of resources to optimize and maintain iOS.  Correct integration of hardware and system that works great not only with special applications but also with computers or smartwatches is also included in the price.

  • The rest of the money is used to cover employee salaries, marketing campaigns, and additional costs associated with providing materials.

  • Don't forget that Apple is the real leader. So if a certain trend is observed in them, be sure that other brands will soon have something similar.  Without a doubt, they set trends.

  • As well as positioning in the market. Apple products imply a prestige, a certain way of life.  Though it seems like thinking is slowly changing, the Apple logo is still a status symbol for many people.

  • Product RED. When buying a red iPhone, part of the income from it goes to support the program to fight HIV and AIDS.

iphone 12

According to CEO Tim Cook, the iPhone can replace a digital camera, a music player, and in general, people need the latest product.  It can't be cheap.

High prices for phones, in principle, are part of the entire marketing strategy of the concern, which, under pressure from Asian competitors, wants to maintain its place among luxury goods.  In this world, the competition is less, and the margin is higher - this is very pleasing to the shareholders of the iPhone manufacturer.


If you wish, you can buy a second-hand iPhone and save a lot without overpaying for the above-mentioned markups and taxes.  ICOOLA will gladly select a model for you, taking into account all your preferences.  On our site you will find announcements of the most popular models and you can find out everything about the interesting one.

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