Reason for iPhones high price tag

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On June 8, 2018

You may wonder why I should pay 1000 dollars for an iPhone when its manufacturing cost is only one-third of its final price. This makes sense for you to think like this but there are reasons why iPhones are sold with a high price tag. When iPhones enter markets outside of America taxes are implied according to the countries import laws this naturally increases the price of the phone. For example, Singapore has the cheapest iPhones in the market when compared to the other Asian markets like Thailand.  Other than taxes their others reasons for the increase in price like

Technological Innovation and R&D

As one of the most innovative company in the world Apple spends a large sum of money in Its R & D. This will directly affect the price tag of the phone to match up with the amount spent on developing the technology of your phone. Once Apple CEO Tim Cook said “not to innovate in business is to die” indicating innovation is the main mantra of the company.

New Features and An Evolutionary Product

As you know iPhones come with loads of new features every year. These features need development money. So naturally, they will increase the price tag of your phone to match up with the fund spend on feature development. iPhone Service Center in Chennai does service for all your Apple products.


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