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The price of an iPhone can be a shock for anyone who is new to the smartphone market and is used to low-cost Android devices. The base model of iPhone starts at $649, which is almost double the price of entry-level Android phones from Samsung, Huawei, or OnePlus. However, it’s not as simple as comparing the cost of components and materials. There are several reasons why an iPhone is more expensive than an Android phone. Let’s take a look at some explanations behind this pricing differential.
Are iPhones Better than Android Phones?
There are people who swear by Android and others who swear by Apple. The truth is, most modern smartphones will satisfy the daily functions you need from a device. If you’re wondering if you need an iPhone or Android phone, ask yourself the following questions: Are you a beginner or intermediate smartphone user? What are your priorities for a smartphone? What are your preferences? What do you expect from your device? What do you value most when it comes to a smartphone? Are you willing to pay for what you value?
If you want a device that works well and reliably with the features you need, and you’re willing to pay a little extra for added security and privacy, then buy an iPhone. If you want a low-cost Android device that will get the job done, then stick with Android. If you’re drawn to Android, then you’re probably comfortable with the Google ecosystem and all the services and products it offers, like Google Assistant, Maps, and the Pixel phones. iPhones are more expensive than Android phones, but they’re also more secure and private.
iPhone costs more to manufacture than Android phones
The material and hardware costs of an iPhone are higher than Android phones, but there are other significant factors that contribute to the higher price. Of course, the most obvious one is that the iPhone is an all-new product that is being built from scratch every year, whereas Android phones are built off of a single design template and upgraded with minor tweaks. Apple has to figure out how to engineer new features and functionality into the iPhone every year. It also has to decide how best to integrate those new features into the device — whether to keep them on the new device’s home screen or make them accessible from a different place, such as inside a phone app.
Software and services are baked in
Apple’s strategy is not just to build hardware — it also builds and licenses software that runs on the hardware. With an iPhone, you’re buying a device that comes with hardware, software, and services. With Android phones, you’re buying hardware and software, but you’re not getting any of Google’s services – things like Gmail, Google Maps, YouTube, Google Drive, and others. Apple’s iPhone shifts between $650 and $1,000 based on model and storage capacity, while the average Android phone is $220. The extra $350 goes to cover the cost of licensing many software features, as well as the revenue share Apple pays to app developers.
Security and Privacy
Another factor that contributes to the higher cost of iPhone is the tighter security and privacy measures compared to Android. Apple engineers iPhone hardware and software to work together in ways that make it more secure. For instance, the iPhone stores all your data on the device’s encrypted chip, which protects your information from hackers. Android devices are less secure and don’t come with encryption. This means that anyone who can access your phone can access the data on it, including law enforcement officials and hackers.
Apple’s device refresh cycle is longer than Android
Apple has a much longer refresh cycle than its Android competitors. The company may make small changes to the hardware and software each year, but it doesn’t make major changes like swapping out the processor or swapping out the operating system.
There are times when this is a benefit to customers – Apple tends to be very careful with its software updates, making sure they work well across its various devices. It’s also a benefit to the company, because it doesn’t have to update its hardware as often, and its devices are more reliable.
Apple retains control over its entire software ecosystem
Another factor that adds to the cost of iPhones is Apple’s closed system. The company decides what apps are offered on the iPhone, and it retains control over the App Store. Apple has a reputation for being strict about which apps are allowed in the App Store, often rejecting apps for the tiniest reasons, like the developer’s address is on a different continent.
Apple also takes a 30% cut of every app download. This means that app developers need to charge more for their apps. They only get 70% of the price you pay for the app, while Apple gets the other 30% as a cut. With Android, Google’s system is more open. You can download whatever apps you want, and they don’t cost any more.
iOS has greater customer loyalty and retention
Finally, another factor that contributes to the higher cost of iPhone is greater customer loyalty and retention. Apple has proven to be more effective at retaining customers than Android. While many Android users have switched to iPhone, this has not been a net positive for iPhone sales. Since switching costs are lower for Android users, customers are more likely to switch to another Android device. This means that Apple has to spend more on customer acquisition than Google does. However, it also makes money from iPhone sales, retention, and upgrades.
Bottom line
There are several reasons why an iPhone is more expensive than an Android phone. The material and hardware costs of an iPhone are higher than Android phones, but other significant factors contribute to the higher price. Apple has a much longer refresh cycle than Android competitors, retains control over its entire software ecosystem, and has greater customer loyalty and retention. These factors make it a more expensive product.
