Are you looking for reasons why the iPhone 5 is so expensive? Then you can rest assured that this is the right article for you. Apple fans always await the latest generation of awesome gadget from their favorite manufacturer. Similarly, they are also bracing themselves for another onslaught on their bank accounts.
iPhone 5 was actually more expensive than its competitors who have similar hardware. What is more, it still sold out minutes after it was launched. According to most high tech reviewers, you can still get better smart phones out there at a lower price. Which begs the question: ‘Why does Apple charge so much and still get their products selling out?’
The secret is in the extensive and careful branding. It also lies in the flawless reputation that Apple has built over the years. No wonder the iPhone 5 costs more than other phones.
High Cost of Production
Even without a contract, this phone will cost you anything between $ 650 and $ 850. This will depend on the specs. According to IHS, Apple would typically spend $ 250 to manufacture the most advanced version of the iPhone 5. This cost includes the labor required to assemble all the components and the value of the said components.
Still, this phone provides smooth and fast performance. Apple also uses durable materials to build their amazing gadgets. Therefore, it comes as no surprise that it should be so expensive.
Apart from that, you also have to consider the expenses involved in developing newer versions of the operating system. The apps that should be included as standard with the iPhone 5 also cost money. Since it is difficult to calculate the price for the iOS and apps per phone, Apple tends to tie the salaries of its graphic designers and programmers into each price tag.
In the same way, parts have to be transported as do the phones on completion. In as much as this happens to all other phone varieties, the transportation costs also increase the price of the iPhone 5.
As it is, Apple is one of the biggest buzz-makers in the market. The company outspends all of its top competitors year after year. Therefore, another reason why the iPhone 5 is more expensive than other phones is due to the buzz created even before its release.
Apple uses an amazing appeal in that each gadget has one main brand only. This gives fans a new release they can anticipate. In fact, Kantar Media estimated that Apply spent an approximate of $ 250 million to advertise the iPhone 5. Apple also factored this into the cost of each phone.
At times, Apple can actually charge more for the iPhone 5 than other mainstream smart phones on the basis that people will still buy it. Apple knows how to capitalize on the signature style of small, sleek devices. Since most customers agree that iPhone 5 is beautiful, they will pay the price required to get their hands on one. This also gives them access to the App Store that has a greater selection compared to Android and Windows. Overall, these are the reasons why the iPhone 5 is more expensive than other phones.