When it comes to iPhone in India they are not just a smartphone but status symbol which people use to eleobrate there richness and class.People are buying this hefty priced phone by taking loans and emi's so the question arises in many of us Indians that why these iphones are priced so whereas there android counter parts provide more features at a cheap and convinent price than an iPhone so today let's disclose the secrets behind the cost of iphones.
Manufacturing and selling cost of iphones
Let's take a look through the report provided by teardown about manufacturing cost of iPhone 5s,6 and iPhone 6s.If we consider the example of iPhone 6s it's cost around 242.50(Around 15,500 Indian rupee) whereas the selling price of an iPhone 6s at that time of launch was around 40,000(Now the price has been deducted to around 25,000)so buy simple calculation we can see that apple used to gain more than double profit on selling of each device.
For what purpose does most of people uses there smartphone for?
The report clearly indicates most of people use there devices to complete there daily need like calling,texting , messaging, internet and other daily stuff and clearly there are very low percentage of people who use there device for productivity or as android is concerned the flashing of custom roms and using heavy appps and games on daily basis.So it's clear that most of people people use there phone for doing basic thing and are not interested that must in more advance hardware and software.
Reason behind the high cost
- The major system that affects the cost difference between apple and android is the software if we look at android the devices they use the same software as provided for Google with a skin overlayed on the top that's why software updates are big issue for android where's when you buy an apple device buy buy an unique ecosystem which has been highly calibrated according to need of particular iPhone so we can find even the older iPhone 5 receives major software updates.So the cost we look at the top is merely the manufacturing cost but not capital spent on the continuous research and development of iOS.
- The iPhone series was launched with Motto to provide premium smartphone devices so why can we ask low price for premium device.
- The another reason would be business tactics as we know apple has become a craze all over the world so the finiacial experts will use this opportunity to gain more and more capital.
- The components used is apple devices are far more superior than that being used in android devices. So if we look at the major of Android manufacturer just manufacture the phone and that's the most of manufacturing cost as no money is spend on development and research on the particular OS as they just dump down the modified version of Android os with a skin.
- When we look at apples computer part that provide phones at ultra cheap price like Xaiomi,Lenovo,one plus they don't spend a lot on marketing and advertisement that why the Chinese manufacturer are able to sell phones at a alternatively lower price.
Does the iPhone price decrease
Yes,iPhone prices also decrease when an iPhone is replaced by a newer generation iPhone the demand supply chart alter causing more flow than required supply so that's what causes the price drop so that's what we can see these days as soon as iPhone 7 took place of iPhone 6s the prices of previous generation iphones reduced drastically so today we can get and iPhone 5 at jast 15,000 and a iPhone 6 at 24,000 and so the prices will drop more with the release of 8th generation iPhone 8.
Overall
