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thanks for watching techwiki click the subscribe button then enable

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notifications with the bell icon so you won't miss any future videos

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at some point or another in your life you've probably been in the position of

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being drawn to something shiny and fancy

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at least until you saw the price and if you're like me this has probably

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happened to you at least once if you're willing to admit it

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at an apple store but why do apple products have this reputation for being

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so gosh darn expensive i mean i could understand why the original iphone and

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macintosh were pricey they were category defining devices but nowadays plenty of

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other manufacturers are rolling out do-it-all smartphones and slick-looking

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computers so how does apple still justify charging a premium

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well let's go ahead and get the obvious and

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slightly cynical answer out of the way first you are at least partially paying for

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the brand similarly to other companies that tend

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to charge more for their products that aren't necessarily better than their

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competitors when it comes to performance or features

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apple has successfully positioned itself as a

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lifestyle brand that can get away with selling their wares at higher prices

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simply because people are willing to pay more for the logo

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but this doesn't mean that apple products are just overpriced junk part

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of the reason that they have this luxury image in the minds of their fans is that

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they have consistently focused on the higher end of the market

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ever since the launch of the original iphone they've put more consideration

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into design features and component quality compared to cost and this has

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also been true of products like the macbook now the lower end of the market is

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indeed valuable just ask mcdonald's or walmart but apple hasn't wanted to risk

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cheaping out to make lower end products that could compromise their brand

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reputation especially after the failures of devices that they did design to be

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more affordable like the iphone 5c

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and there's more to manufacturing than just the bill of materials or bomb cost

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of the actual device apple invests heavily in the development of new

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technologies and manufacturing processes

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so despite the headlines regarding poor treatment of contract workers in asian

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factories idevices generally aren't

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cheap to produce combine this with the fact that apple is

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relatively picky about component sourcing and you end up with a situation

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where once they do standardize something supply for these parts can become

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constrained raising prices for the folks in line at the apple store at 6 am and

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in some cases even industry wide

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apple also has to sink a significant amount of money into software

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development because it has its own proprietary platform

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unlike manufacturers of Android phones for example which can obtain the Android

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os for free from google and then tweak it according to their needs apple built

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and maintains iOS macOS and backend

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services like icloud and imessage themselves which further drives up their

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costs which of course someone has to cover

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and although the proprietary more closed nature of the apple platform has been a

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lightning rod for criticism some of it quite legitimate it's also a value add

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for many customers who choose to buy into the apple ecosystem as there's a

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perception among apple fans that having software and hardware so tightly

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integrated with each other allows for better performance and reliability along

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with less susceptibility to malware and while idevices obviously are not

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crash proof or completely secure apple

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has been able to run a tight enough ship for this perception to endure among its

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loyal customers finally of course you have to consider

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how much money apple spends on marketing

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some of their initiatives are obvious like ads on tv or the hype that they

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build around their famous or infamous launch events courage but some of their

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marketing costs are less so take apple's stores for example they do serve as a

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place where you can walk in and buy an iphone or whatever but they also invest

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in costly highly visible locations

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iconic designs and an experience in the store that is distinctly apple

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like what about those free workshops and tutorials that they host well those

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aren't free for apple to host but they continue to run them because they

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increase brand loyalty so even though apple has recently dipped

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its toes into more affordable products such as its sub 350 dollar ipad and

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competitors do sell products that might have more powerful components at a lower

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price apple has used an interesting combination of product strategy and

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marketing hype to keep people coming back for more

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now if only they could do the same with my online dating profile

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so thanks for watching guys like dislike check out our other videos and leave a

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comment with video suggestions and oh and don't forget to subscribe i almost

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