Why are Apple products expensive when labor is relatively cheaper ? 🤑

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If Apple products stand out for anything, it’s their prices, which are often considered high. This pricing equation regularly raises questions, particularly in view of the fact that the Apple brand manufactures a large proportion of its devices in China, where labor costs are relatively lower. A contrast which may seem paradoxical at first glance, and which we shall attempt to explain in this « Ask Griots ».

Design, materials and ecosystem🔬

Apple invests heavily in the conception, R&D, design and engineering of its products. This expertise comes at a high cost. What’s more, the brand uses high-quality materials such as aluminum, glass and stainless steel for its products, which increases costs.

Part of the high price is used to finance Apple’s software services and integrated ecosystem (iCloud, App Store, etc.), as well as physical stores like the Apple Store.

Brand image 🌟

The Apple brand has a premium image, which enables it to charge higher prices. In addition, Apple products are in high demand, enabling the company to maintain high prices without risking lost sales.

It should also be noted that Apple has a very loyal customer base, which is willing to pay more for its products.

Finally, Apple is known for its high profit margins, which means it keeps a large part of the selling price of each product.