Two weeks ago, Business Insider caused a stir with a video titled, “Why Apple Products Are So Expensive.” The video was part of Business Insider’s “So Expensive” series, which takes a look at why certain items are priced the way they are.
The video was troubling for the number of inaccuracies, falsehoods, and outright lies it included about Apple and its pricing strategy. According to Business Insider, Apple products are expensive because loyal users are willing to pay an “Apple Tax,” or a higher price attached to products containing an Apple logo. A closer look at Apple’s actual pricing strategy reveals a fundamentally different explanation for why Apple products are priced the way they are. The days of there being an “Apple Tax” ended years ago…
Apple’s ability to grab monopoly-like share of industry profits isn’t a result of there being an Apple Tax but rather a byproduct of Apple following a design-led product strategy that ultimately marginalizes industries.
MacDailyNews Take: The “Apple Tax” always failed the logic test because the price is not higher “because it has an Apple logo on it,” but because it contains a unique, superior operating system and unique, superior apps tied into a unique, superior ecosystem (see: Continuity, for one example) that “just works” (most of the time, but especially in comparison to non-Apple tech).
From the Mac to the iPod to iPhone and iPad to Apple Watch and AirPods: Apple products are better designed, with symbiotic, custom, complimentary hardware and software (not off-the-shelf parts trying to work with an off-the-rack OS) and offer smoother, more elegant operation as a result.
In short, Apple products are generally worth whatever “extra” cost (and then some) vs. competitors’ rudimentary wares.
Those of us who are smartly all-Apple have such an easy time with technology compared to the rest of the world. Inside the walled garden we have Continuity – it all just works! — MacDailyNews, July 18, 2019