In 2016, the iPhone 7 started at $649. Three years later, Apple's flagship iPhone cost 54% more. It's even more dramatic for the Mac Mini. When Apple released its new model, the price increased by 60%. These prices bring in huge profits for Apple. As the US's first trillion-dollar company, Apple's market cap is higher than the GDP of Switzerland.
In truth, $6,000 for a professional reference monitor of this quality is comparable to the competition, but that didn't matter. Apple had botched the messaging, and its $1,000 stand became infamous.Apple does something else that's a bit sneaky, which is that when you're buying the iPhone, you can't add memory to it. So if you want more memory, you have to pay more Apple tax.With Apple's computers, these upgrades get even more expensive.
- They're catering to people that really love ease of use and user-friendliness, and I think that probably that layer of design probably costs a little bit, and I'm happy to pay for it. - They are expensive because they know we will buy all of their things no matter how expensive it is.I think that customer loyalty is hard to earn, but when you do earn the customer loyalty, love is blind.But this strategy might not work forever. Competition with less-expensive Android phones has gotten steeper, and that's put the iPhone's market share at risk.Apple's performance in India is pathetic.
A luxury product is like a Rolex, right, that you'd keep it for a lifetime. Well, you can't keep a smartphone for a lifetime. So, premium. Perhaps not luxury.For now, Apple's reputation remains strong. And the customers who don't want to spend $1,000 on a new phone? Apple has a plan for that. Keep the old models around, just at a very slight discount. But if Apple wants to keep its loyal customers, its innovation will have to keep pace with its premiums.
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