Everyone in today's world knows about Apple. It is an American multinational technology company that specializes in consumer electronics, computer software, and online services. And it is one of the big five American information technology companies, along with Amazon, Google, Microsoft, and Facebook. 
Whenever we talk about Apple products like iPhone, iPad, Apple Watches, or any other services offered by Apple, a question comes to everyone's mind that why Apple products are so expensive? Let us take the example of a smartphone right now, the latest iPhone 12 Pro which costs around Rs 1,18,900. Anyone would think that I can buy 2 or 3 Android premium smartphones instead of iPhone. So why would I pay so much money to buy an iPhone? Don't worry friends in this post you will get your answer to this question why Apple charges more amount for any of its products or services.

There are basically 4 reasons Apple inflates the value of its products and it costs more

1.Luxury Brand Value /Apple Tax
For the past few years, Apple has established itself as a luxury and premium brand. People generally think that people who use Apple products are considered to be luxurious and wealthy people. And people are willing to pay a higher price for an Apple product than any other commodity product (ex: - an iPad vs a Samsung Android tablet) and that's the tax you pay for buying an Apple product or getting any additional features in Apple. That is called Apple Tax.

2.Apple says innovation isn't cheap
Apple thinks the innovation they make isn't cheap. If they don't sell their products at a higher price then they will not get any profit. And if they don't get any profit then no more innovative product will be launched by Apple. Because of this, they sell their products at a higher price. And the profit they make from selling their products is used in the development of their innovative products and manufacturing process.

3.Apple Ecosystem
iPod comes first in the market, after that Apple launched MacBook then iPhone, similarly they launched many products in the market. One of the benefits of using Apple products is that they are easily connected with each other. And in this way, it forms an ecosystem and that ecosystem is called as Apple ecosystem.
When a person buys an Apple product, he/she gets trapped inside that Apple ecosystem. If you are using all the products of Apple then it will work smoothly. And you can easily pair each product with each other. And due to this people are getting addicted to it and they are not able to leave that ecosystem easily. If Apple launches a new product in the market, people have no other option and they are ready to buy that new product at any cost.

4.Shareholder pressure in Apple stock

Looking at the sales chart of iPhone for the last 5 years, there has been a decline in the sales of iPhone.
Apple's peak time was in 2015. In 2015, they sold so many units of iPhones. After that, iPhone sales declined, along with MacBooks and Apple Watches. Because of this, the growth was not clearly visible in the graph. And everyone knows that Apple is a public company and Apple always wants to make a profit for its shareholders. If they don't make any profit they will have to answer. 

Apple already knows that they are facing problems in selling their products. So to make a profit they have to increase their fee which means they have to increase their profit margin in every single product like iPhone, iPad, Macbook. Because of this, you will see the Apple mac pro stand costs around $999. And that profit goes to its shareholders and Apple Inc. 
Due to this In August 2018, Apple Inc. became the world's first company to record a market capitalization of $1 trillion

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