Apple Fleecing Their Customers?

I have always known that Apple products are ridiculously expensive, but an article I read today really brings home how much profit the company is making on its goods.

iPhone 5S

iPhone 5S

The example given was for the Apple iPhone 5S 16G model which gives Apple a staggering 41.4% profit on each item sold. The production cost of this phone, which is sold in the UK for £549, is a mere £129. This includes the research and development costs, marketing and distribution, and VAT.

IPhone costProduction of the other models with greater memory capacity like the 32G and 64G versions give the company even more profit. The 32G model sells for £629, an increase of £80 for the extra memory, but the production costs are only £6 more than the 16G model. The 64G phone costs consumers an extra £160, at £709 with only a difference of £12 in production costs over the 16G model.

It used to be argued that Apple products were more stable and reliable than other manufacturers, but is that still true today? For many, to go that extra mile and buy an Apple product was worth it because they were superior to other models on the market, but those days are now long gone. With stiff competition coming from companies like Samsung, it is now more a question of getting value and reliability for your hard-earned cash.  In the past this has always been a good reason to buy from Apple.

I must admit that both my wife and I have iPhones, but there is now a big question mark over whether we will buy another one. My phone has been exchanged for a new one three times because of problems, and my wife has had hers changed twice. So to be honest, reliability is not a very good reason to continue.

There is little doubt that you cannot fault Apple on their product guarantee service, for there is no haggling or being brushed off with excuses, the item is exchanged for a new one on the spot. For this I applaud the company, for there are few with such a good reputation in this area. It can be argued however, that with such a huge profit margin they can afford to do this.

Steve Jobs

Steve Jobs

In my view, since the demise of Steve Jobs the company has gone downhill in many ways, the most important being reliability. Apple is trying to pack too much technology into their phones. These days they can do just about everything except fry an egg.

It is a fact of life that the more technical things become, the more things can go wrong. I believe manufacturers should remain aware of this. But you see, it is the march of progress, and each company must come up with new gadgets to beat the competition. When I had my 3S phone I kept it for four years without a single problem, but ever since I upgraded I get problems, hence having it changed three times under the guarantee.

Too Much Technology Can Lead To Crash And Burn!

Too Much Technology Can Lead To Crash And Burn!

There can be little doubt that feeding the gadget hungry young people of today will continue with companies like Apple, and eventually we may well be able to fry an egg with the phone, but it will all come crashing down when people realise that reliability is also important.

Roy.

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