Why the Apple iPhone is such an expensive product? - CYDIAPLUS.com


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Friday, 1 September 2017

Why the Apple iPhone is such an expensive product?

Let's not fool ourselves, the iPhone is not exactly one of the cheapest smartphones on the market. Although Apple has some very affordable model, as is the case of the iPhone SE (which has an impressive value for money), the company's mobile phone is one of the most expensive today.

In fact, many people argue that Apple consumers pay an extra price for the apple logo. Nothing further from reality, fortunately, at this stage of the modern era all costs are controlled to the smallest detail . Paying more money for a brand only happens in the case of fashion. Inexplicably, if you'll let me.

Yes, the iPhone is expensive, very expensive. But this has an explanation. In this article we will talk about why the Apple iPhone is such an expensive device .
These are the reasons why the iPhone is so expensive

The final price of the iPhone is nothing more than the sum total of the cost of the actions carried out by Apple before its arrival in the market. And this encompasses a large number of processes related to: research and development, engineering and design, manufacturing and purchasing components, materials, manufacturing, assembly, production, marketing ...

Let's go in parts, as one Foxconn employee would say, Apple costs a total of € 207 to make an iPhone 7. This cost is related to the acquisition of components such as the processor, battery, cameras, screen, etc. On the other hand, its manufacturing materials (aluminum, copper, cobalt, nickel ...) cost just over € 1 . But before reaching the market the iPhone has to go through a series of very important processes that influence its final cost. As mentioned earlier, all components must be linked together in manufacturing and assembly. And this has a price.

In addition, commercial spots, marketing, commercialization and even test phases must be taken into account, in which all kinds of terminal tests are carried out (water, resistance, battery life ...).

But there is still more, unfortunately the company of the bite apple also has to pay some extra taxes overseas export . This is why in the United States is a little cheaper than in Spain and other countries at an international level. Keep in mind that before reaching your pocket, your iPhone travels around the world!

As you may have noticed, the manufacture of the iPhone is not as expensive as it seems, but if we add up the cost of all the processes we would reach an estimated figure between € 500 - € 600, leaving a margin of € 200 - € 300 for company profits . Something totally understandable.

After reading this ... Do you still think the iPhone is too expensive? Should Apple lower its prices? 

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