Why iPhone is So Much Expensive?

iPhone Expensive

Apple has been a renowned brand in the tech industry for decades. However, the price of iPhones has always been a hot topic for discussion. While the latest iPhone can cost as much as a laptop or even a car, many people still prefer to buy them. But have you ever wondered why iPhones are so expensive? Let’s find out!

Quality Components

If you’ve ever used an iPhone, you’ll notice the premium quality of its build and design. Apple uses only high-quality materials such as aluminum, stainless steel, and premium glass to make their iPhones. They also use advanced technology for their camera lenses, which makes their phones capable of taking amazing pictures even in low light conditions. All these quality components come at a cost, which contributes to the high price of the iPhone.

Research and Development Costs

Expense Amount (in billions)
Research and Development 16.2
Marketing 4.5

Source: Statista

Apple invests a lot of money in research and development to provide its customers with a better experience every year. In 2019 alone, Apple spent over $16 billion on research and development, an increase of $2.3 billion from the previous year. This investment adds to the cost of the iPhone, making it more expensive than other smartphones.

Brand/Image Value

Apple is one of the most valuable brands in the world. The company’s brand value is estimated to be worth over $260 billion, according to Forbes. Apple has built a reputation for quality and innovation, which has enabled them to charge a premium for their products. Their customers are willing to pay more for an Apple product because they associate the brand with high quality and exclusivity.

Depreciation Value

Apple products are known to hold their value well, which means that even if you buy an iPhone, you can sell it later for a good price. Apple has built a loyal customer base over the years, which has increased the resale value of their products – iPhones included. As a result, you’re essentially paying for a product that holds its value for a longer period of time.

Production Costs

Apple manufactures most of its components in-house, which adds to the production cost of the iPhone. Additionally, their assembly process is highly automated, which requires significant capital investment. However, the automation also ensures consistency in quality, which is a key factor in Apple’s brand image.

Ecosystem Lock-In

Apple’s ecosystem is one of the strongest in the tech industry. Once you own an iPhone, chances are that you’ll also end up buying other Apple products such as a MacBook, iPad, or Apple Watch. This ecosystem lock-in is one of the reasons why Apple is so successful, and it also contributes to the high price of the iPhone.


In conclusion, the high price of the iPhone can be attributed to various factors such as quality components, research and development costs, brand value, depreciation value, production costs, and ecosystem lock-in. While these factors may make the iPhone expensive, they also ensure a premium experience for the customers who are willing to pay the price.

Related video of Why iPhone is So Much Expensive?

Leave a Comment