Why iPhones are so costly??

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The iphones of Apple are undoubtedly too much expensive smartphones. Since iphones are too costly but still these phones are too much popular among smartphone users.


There are many pros and cons of this device and can result into the endless debate. This is the fact that the iPhone is the best selling smartphone on this planet. Now the question is this what makes an iPhone's price so high? The reasons behind its cost are simple and easy to understand.

Components of iPhone

The components inside an Apple iPhone cost more than that of an android phone. Apple has promised its customers to provide such a phone which did not and does not compromise on quality. Apple actually uses premium components within an iPhone.
A detailed calculation of the prices of components of iPhone are around $200. It means that Apple does have a high manufacturing cost for an iPhone.

 The Apple IDE

When we purchase an iphone then we actually buy the right to get access to more than one million apps and amazing features such as iMessage, FaceTime and iCloud services that are absolutely free for iphone users. Also Apple provides you free updates regarding iOS. It is really very  difficult to estimate the actual price for this premium IDE  but we can surely say that Apple can manage the salaries of its software developers, designers and other technical staff through the cost of every iPhone.


The Demand Factor

According to the phenomenon of economics "the lower the price the greater the quantity demanded and higher the price the lower is the quantity demanded" but the case is different for Apple. The higher the price of an iPhone the greater is the quantity demanded and supply is relatively low as compare to demand. The case with iPhones can be exactly defined as the relationship between demand for these devices  and their availability is quite steep.

The advertising expenses

Apple spends alot on the advertising. Apple  always outspends its competition on a yearly basis. The company of iaphone is extraordinary effective in getting its pre-existing customers on board to buy any of its new product. So whenever Apple launches any of its new product this results in a huge sellout.

Conclusion
As a result we can say that Apple’s business is based on a increased profit margin model that is of the monopoly of Apple. Moreover Apple can maintain such high prices for iPhones due to the supply-demand economics of monopoly.
These reasons clearly justify the idea of how and why iPhones are so costly.




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