Millions of people all over the world enjoy their Apple iPhones every day. They enable us to communicate freely with others, gather endless bounds of information, store & manage data, and keep us entertained from anywhere at any time. Our iPhones are the single most essential tool used in day-to-day life, and more and more people are jumping on the trend bandwagon. Because of this shared love for iPhones everywhere, iPhone sales continue to increase. With each passing year, Apple comes out with new iPhone versions and new ways to capture the attention of people from all over the globe.
So, if the iPhone is so popular, then why is Apple making iPhones so expensive? Is it because Apple knows that the masses will pay the money just because it’s an iPhone? Is it a supply and demand aspect? Is the iPhone really worth the price? All of these questions continuously go unanswered, and they beg even more questions.
Simply put, the new iPhones are too expensive, and most people find themselves having to budget down dramatically just to afford the latest models. The iPhone XR is currently valued at $749, and the iPhone XS is at $999. This is a whole month’s rent! We are literally breaking the bank to include ourselves in this mass-mediated cultural trend and have pushed the limit of our living budgets as a result of joining the club.
Yes, these award-winning devices have broken the barriers of modern technology and have paved the way for the birth of a new standard of the smartphone. But, at what cost to us have these tech giants made waves with these new technological advancements?
Is The iPhone Worth Buying?
iPhone costs are mostly the same price as other brands, such as Samsungs and do not take away from the quality of the two devices. So if you’re comparing the iPhone and Samsung based entirely on price, then you’re going about it all wrong. There is no clear answer to the question, “is the iPhone worth buying” because it’s entirely subjective.
And just because something is more expensive does not necessarily mean that it’s better. Various factors determine the retail value of a smartphone. Maybe it’s the currency exchange rate changes that make it more expensive to buy foreign parts for the manufacturer. Or perhaps the new advanced technology calls for more components and more functions to be built within the internal frame design, which affects the overall cost.
Any of these factors may come into play to provide some sort of explanation as to why the iPhone price increases to staggering amounts with each passing year. In Apple’s case, however, the answer lies within the subsidy.
The iPhone Subsidy
A few years back, most people didn’t pay full price when they bought an iPhone. Instead, they would pay a down payment that was sold in addition to a 24-month contract to their wireless company. The wireless company was then subsidizing the overall purchase price of the iPhone by making you stick around for a 2-year contract. Part of your monthly bill was going towards paying off your iPhone.
So essentially, these wireless companies would have you sign up for a layaway program to pay off your iPhone. These deferred payments made it a lot easier for you to budget your income and spread the cost out over time rather than put all your eggs into one basket at once. This would then give people the motivation to get a new phone every 2 years so that you would get your money’s worth.
Now, times have changed. Instead of a deferred payment plan like there was before, Apple has built-in upgrades structured as loans rather than wireless contracts. It’s a much more transparent system since your phone is actually yours after you’ve paid it off instead of technically belonging to the wireless company and then suckering you in for a phone upgrade once your contract is up for renewal.
Apple has the iPhone Upgrade Program that gives you a monthly exchange for using an iPhone for a year and then getting a newer model after turning it in for resale. There are no more plans, no complications, and no strings attached. You can just walk into any Apple store and purchase an iPhone for full price, and you don’t have to go through a smoke-and-mirrors transaction like you would at a used car dealership.
Higher iPhone Prices for Longer Time Periods
Apple has announced that they’re making the iPhone longer-lasting in which they’re lengthening the usable life of iPhones. iOS 12 has focused on improved performance for older devices, and this has become a massive factor in the increased price of iPhones over the years.
When smartphone manufacturers make their phones better, more improved, and longer-lasting, then it makes sense that they would increase the price. This is precisely what Apple is doing. So now, you don’t necessarily have to purchase a new iPhone every year. If you make a smart purchase for a dependable iPhone that lasts long and offers all of the functions and features that you love, then be happy!
Don’t pay more when you don’t have to. Use your iPhone for as long as you can without paying the extra price.
The Average Selling Price of iPhones
Since late 2016, the iPhone 7 and iPhone 7 Plus was announced, and since then, Apple has been increasing the price of iPhones. This influx in iPhone prices has brought us to where we are now with the latest iPhone models being priced at $749, $999, and $1,099. Although Apple is one of the most profitable companies in the world and a significant pioneer in the electronics industry, sales are decreasing with each passing year.
Now, you would think that Apple would just suck it up and take their loss at face value. But, no. Apple won’t stand for any type of loss, big or small. So now, they’re aiming to justify their decrease in sales with an increase in price. Apple considers the possibility that people will be more willing to pay more for top-of-the-line iPhones and has spent many efforts in marketing these products to the masses.