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Old Dec 12, 2012, 12:44 PM   #1
DShap5
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Price?

VERY GENERAL QUESTION HERE:

Why are all of Apple's things priced so high? I mean, the iPad mini's price looks crazy! and I heard that everything it is made of comes to about $180! Even after including production costs, is this right? does Apple just price there products so high because they feel like it?
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Old Dec 12, 2012, 12:47 PM   #2
Johnf1285
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Quote:
Originally Posted by david shapiro View Post
VERY GENERAL QUESTION HERE:

Why are all of Apple's things priced so high? I mean, the iPad mini's price looks crazy! and I heard that everything it is made of comes to about $180! Even after including production costs, is this right? does Apple just price there products so high because they feel like it?
There are many reasons.

One, is a marketing strategy used to attract a particular demographic. The one with disposable income, willing to purchase into the Apple eco-system for the long haul. Not just buy one product and be done with it and then switch to a different brand down the road.

There are more reasons too, but this one popped into my mind first when you mentioned the cost of the iPad Mini compared to other similar sized tablets on the market.

Apple and Bose have similar marketing strategies in some regard. They both make decent products, are they the best? Not always. But people still buy and they retain huge profit margins.
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Old Dec 12, 2012, 12:48 PM   #3
Lukkee24
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Because even with high prices for some of their products, there is still demand for them. So, no need for them to lower their prices yet .
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Old Dec 12, 2012, 12:49 PM   #4
edry.hilario
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Quote:
Originally Posted by david shapiro View Post
VERY GENERAL QUESTION HERE:

Why are all of Apple's things priced so high? I mean, the iPad mini's price looks crazy! and I heard that everything it is made of comes to about $180! Even after including production costs, is this right? does Apple just price there products so high because they feel like it?
yeah it cost 180 for parts but what about software, that needs to be priced, how about the people that have to assemble it, and intellectual property, how about the people who designed it those people need to get paid too its not the cost of parts, there are many many factors that add to the parts cost, apple also need to pay for patents and other rights, in other words there are many many MANY other things that lead the price to be the way it is, and on top of it apple needs to make a profit so there you go.
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Old Dec 12, 2012, 01:00 PM   #5
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yeah it cost 180 for parts but what about software, that needs to be priced, how about the people that have to assemble it, and intellectual property, how about the people who designed it those people need to get paid too its not the cost of parts, there are many many factors that add to the parts cost, apple also need to pay for patents and other rights, in other words there are many many MANY other things that lead the price to be the way it is, and on top of it apple needs to make a profit so there you go.
Economics 101
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