Apple product prices, why are they so high and why are people willing to pay those prices? That's kind of what we're gonna be talking about today
Not just about the iPhone but Apple products in general because obviously with the new iPhones coming out they are extraordinarily
Priced but people are still buying them more than ever now
I should point out that this video is not going to be a conclusion
Like Oh, Apple prices should be this or they shouldn't be this high
I'm basically in a play devil's advocate and say why Apple?
possibly is able to charge these prices and
Why it even works out for them when other companies probably wouldn't be able to get away with it
So it's not like this video is just gonna be a big circle. Jerk like all Apple sucks or Oh apples the best
No, we're gonna kind of just take an objective look at it and you can decide for yourself now
First of all, I think we can obviously start off by saying yes
some of it absolutely
is just because of an
Apple premium their price gouging some of it just because they can and they know people will buy it and some proof of this is
Just look at the new iPhones how they do not come with the Lightning - 3.5 millimeter dongle
It's how much could that thing possibly cost and they don't include it in a thousand-dollar phone like you've got to be kidding me that
Absolutely. It's just penny pinching and price gouging
especially considering that that dongle is apparently one of the most popular
Products sold at the Apple stores because people want so many of them and yet they don't include it in the product that they know
People are gonna want so that's just kind of BS. I don't like that and
absolutely, some of that price is because of gouging, however
There are actually other legitimate reasons why Apple might have higher costs for production
specifically because Apple has to design all of their hardware in-house basically
especially the processor so they have the a12 bionic now and
So they had to design that and then hire company to make that processor. Whereas most Android phones
Just go to whatever
Qualcomm has come up with latest and Qualcomm makes the processors and then the Android
Manufacturers buys it off then they don't have to design anything and spend that much on research and not just hardware though
But also software because Apple has to write their entire operating system in-house and specifically for that hardware
Whereas most manufacturers besides Google can just use whatever Android is using because Google writes Android and then yes
They might do their own little customization and create their own skins
but for the most part
Androids already pre-built and they just kind of have to slap it into their phones and then they're done
Whereas Apple has to do everything from scratch for themselves. So obviously some of the price is just
Hardline objective production costs that's gonna raise the price no matter what but a lot of it also
Like I said before
can come down to what people are willing to pay for its supply and demand so we can kind of look at why people
Are willing to pay that much and the more subjective?
Features that go into it and that's definitely another factor as well
The first reason I would say is that Apple tends to not cut corners
Yeah, they make some dumbest decisions that people might not like like taking out the headphone jack
I don't think anyone likes that
But what they do put into the phone they tend to do it very well
So they don't cheap out on anything at least and kind of going back to the software. The software in iOS is really rock-solid
I mean it's so stable compared to Android now Android definitely is getting a lot better
but iOS has always been like a just
Gold standard of what a good mobile operating system is it's very simple to use people find it very easy to use
Yes, it is. Absolutely more restrictive, but apparently people are willing to pay for that
Anyway, a lot of people don't want complicated at all. They're willing to
Forego a lot of features that Android might have on top of the iPhone
But it's possible that they might not have ever used those features in Android anyway
so they would rather have fewer features that just work better and obviously I'm very
Generalizing when I'm talking about this kind of thing Android has improved greatly and it is pretty solid
But really it's still nothing compared to iOS. You just cannot argue that
Android is more stable than iOS another big factor for why people are willing to pay. Yes iPhones are stylish
Just a fact of life people think that iPhones are cooler than Android. So that's another big thing whether it's right or not
but again
We're not just talking about iPhones and iOS here also for their laptops and the Apple watch
It's kind of the same thing with the hardware. It's all
Produced in-house and Mac OS is pretty much understood to be a lot more stable than Windows
Everyone knows well way back that max didn't get viruses
That's not really the truth anymore but max or a lot easier to use than Windows
I don't think anyone would argue that they're more difficult to use than Windows and they are much more stable
I think everyone understands that also when it comes to the Apple ecosystem
Everything works together. So if you have a MacBook and an iPhone a lot of that stuff works together very easily
So for example iMessage
You can use a lot more features the iMessage than Android which just uses SMS at the moment
For example, you can embed rich stuff into iMessage
And if the other person has an iMessage or iPhone rather they can get a lot more features
You can send them like stickers and stuff and it just works better than SMS
So you really cannot ever say that SMS is better than iMessage
It just is better and another big thing why people are willing to pay this much is because they're not actually paying this much
They're usually going to be doing some sort of deal with their carrier
They pay a monthly fee and then every two years they get a new phone or if they're doing the iPhone upgrade
Program they pay monthly and then they trade in their phone for the new one
So a small percentage of people are actually paying this full price
So you say oh it's a thousand-dollar phone who's gonna pay a thousand dollars. Well, no one really
There are some people like people who want to do video reviews on YouTube
But average people are not going to be buying a new phone every year for example
And they're gonna just be using the deal every couple years with their carrier
But of course we can also keep in mind that this is gonna be the same thing with Android phones
So people are not gonna be paying full price for Android phones either. So I'm not saying that that's why iPhones are more expensive
It's just why phones in general can get away with higher prices because people are generally not paying for them full upfront
Although when it does come to like Mac books and stuff. Yes, they are probably gonna have to pay the full price
specifically just for phones now the next big thing why I think
someone might be able to justify a higher price on an iPhone is because Apple tends to support their products a
lot longer than Android phones
Do I mean the latest version of iPhone or iOS 12?
Supports phones way back to the iPhone 5s. That's what a
2013 phone and yet the latest version of iOS supports it. I mean, that's crazy. You have an
Android phone even Google's flagship pixel phones only support what two years of updates
so it's pretty crazy that these flagship phones on the other side are charging almost just as much and yet they're
Expecting people to have to upgrade every other year where I know that a lot of people don't want to upgrade their phones every other
Year, they might keep it for three or four years or more also talking about updates one advantage of iOS
Is that when you're on any of these phones that are supported you can get that upgrade?
Right away update to the latest version. Whereas on Android there are so many manufacturers. They have all their different flavors of Android
That's customized
so even if Google releases a stock Android version
Then you might not be able to upgrade it on your Huawei phone or your Samsung phone until Samsung
releases their version of that
Android OS which might be months or
Even like a year down the line if they support it at all
so with iPhone you know that if you have a
Reasonably recent version of the iPhone that you're gonna be able to get the latest update
Instantly as soon as you want for as long as that phone supported which will be a while
whereas even with flagship phones on Android Samsung you have to wait several months and that's again lucky if they even
Release it at all. Sometimes. They don't do two years down line. Now. This next one isn't really something that Apple does
it's just kind of like a
consequence of the way
that iPhone
Ecosystem is and that is that apps in general are going to be developed first for iPhone and that's simply because it's much easier
for developers to develop on iPhone for several reasons
First of all, there are a lot fewer iPhones to deal with and support then there are for Android phones
There's hundreds of Android phones over the years. Whereas what?
How many iPhones are there 12 like a dozen maybe?
so if you're gonna be developing an app
You might only have to test on a handful of iPhones compared to making sure it works on every possible Android phone
So that's going to include different resolutions
different amounts of RAM
different DP eyes on the screen different screen sizes all so many factors that is going to be
Incredibly more variety on the Android side. That's tougher to test whereas an iPhone
You could pretty much figure out if it's gonna work right away and because I've is in general is more stable
It might be easier to develop on that as well
Another advantage of iOS at least is that the app store on iPhone is much more restrictive and secure than the Google Play Store
I don't think anyone you argue against this
Yes, there's a lot more variety and it's easier to get apps up on to the Google Play Store
Whereas Apple is very restrictive, but that's kind of like a two-edged sword because with the App Store on an iOS
You know that there's it's very little chance that you're gonna download something
That's like a scam or a virus whereas on Google Play Store
they don't really scan or vet or review anything that goes out there anyone can put something up there whether it's a
Virus you hear all the time about literal viruses going up in the Google Play Store. Google has their
Scanning thing, but it's like look if you can't even figure out it's a virus when it's going up
It's not going to scan and find anything when it's already installed
so the fact that Apple
heavily
Reviews, or at least more heavily reviews any apps going up that is I think an advantage and the final thing
I'm going to talk about is I think that Apple products are much more privacy
Oriented than Android we know that Google is a data company. That's where they make most of their money through ads
They don't make much money from selling products
Apple does so Google they want to collect as much money and
information that they can sell as they can whereas Apple has a very very good track record of
Not letting law enforcement hack their phones and not giving up data to companies that want to sell ads. I mean, we know that
Apple announced their safari browser is going to prevent fingerprinting
So even if they block cookies, it's gonna block things like tracking of fonts. So a lot of
Advertisers will do that where even if you they can't see a cookie of you
They can still identify you just by the browser resolution the fonts you have installed all that sort of stuff
Apple does not allow that another thing they did recently was protect the USB port because law enforcement
They came up with this device that you plug in and then it tries basically all the pass codes
Whereas they made it, so that will not work anymore
Physically disables the USB port after the phone's been locked for like an hour
So they really have been trying hard to make sure that your phone is protected
From other people and then you even look at something like iMessage, which is encrypted end-to-end
Whereas that cannot be said with SMS on any other Android phones or any other phone at all
so obviously if you're gonna be sending a
Android phone a message from an iPhone that's not encrypted
But if you're sending between iPhones you get that blue text it is encrypted
So again in the end, I don't want to say that Apple products are better than other products
I'm just saying that these are why
They might be more expensive and why people are willing more to pay for that higher price than Android phones or other devices
So I think that's it. Let me know what you guys think down in the comments until next time be seeing you