Apple’s ASP and the difference between cost and value

“There’s an incredible difference between what something costs and how much value we derive from it,” Rene Ritchie writes for iMore. “Apple’s success hinges on their understanding of this — we’ll pay more for something that we believe makes our lives better.”

“Sometimes ‘better’ is prestige or cachet, sometimes it’s adrenalin or excitement, sometimes its time saved or work accomplished,” Ritchie writes. “Often it’s a mix. Yet it’s what led Apple not only to record profits this quarter, but to the record average sales prices (ASP) behind them.”

“From iPhone to iPad to Mac, Apple is providing premium computing experiences at increasing size intervals and price points,” Ritchie writes. “Starting soon, it’ll be from Apple Watch to iPhone to iPad to Mac, and the increasing price points will top out not at 128GB or 27-inches but at gold.”

Read more in the full article here.

MacDailyNews Take: Yup.

Newsflash: Apple sells premium products at premium prices to premium customersSteveJack, MacDailyNews, October 23, 2012

[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]


    1. Yes and I believe that redirection wouldn’t happen without the tacit approval of MDN. It’s just plain WRONG to do that to people visiting your site. One of the most reprehensible practices. I can’t think of another legitimate site that does this.

      1. If by “tacit”, you mean displaying ads to pay for us to be able to enjoy the site, then you are correct. He isn’t picking a specific one that he knows is redirecting you.

        If you can’t think of another legitimate site that displays ads, I want to see a list. I can barely remember the days when even the simplest of websites didn’t have ads in sidebars or banner ads along the top.

        As much as we all complain about it, if the ads go, the site goes. I wouldn’t pay for a subscription, so I tolerate the ads. (With much help from an ad blocker. 🙂 )

        1. It’s not the ads on the page that bother me. It’s the redirection before the page loads. I have made purchases by clicking ads to support the aggregation service MDN provides. I now visit less often because of the iOS browser hijacking.

      2. It’s happening to many other ad-supported sites. Apparently you don’t know how ad syndication works. Neither do I really, but I’ve read a little bit about it – enough to know that it isn’t easy to track down where these links get inserted.

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