One of the most popular smartphones in the world is the Apple iPhone. The introduction of the iPhone revolutionized the mobile phone industry a decade ago. However, Apple seems to be more concerned about their profit margin these days than making a product that is affordable to the masses. A recent speech was made at Elon University by Jeff Williams, the COO of Apple. He was questioned by one of the students about the rising costs of iPhones. The student pointed out a recent article that says the cost to make an iPhone is much less than the actual selling price. Williams replied that the media does not fully understand the amount of money that Apple spends to develop and make their products.
Williams did say that the high prices of Apple iPhones are a concern to him. He does not want Apple to turn into an elitist company where only wealthy people can afford their products. The high prices that Apple charges for their phones has caused sales to slump in parts of the world where people do not typically spend as much on a phone as they do in the United States. India is a great example. India has the second largest population in the world. However, Apple only accounts for three percent of the overall mobile phone market in India. Williams did say that they are working to solve this problem in developing markets. However, he did not elaborate about how Apple is going about doing this.
The average cost of an iPhone is getting close to $900. This is due in large part to the iPhone X which costs $1,000. Other tech companies have seen these high prices charged by Apple as a way to compete with the huge company. Apple has basically priced itself out of many developing markets where the average income is much lower than it is in the United States. Other mobile phone companies are offering cheaper phones that can do many of the things that an iPhone can do.
There is no question that cost will become more of an issue moving forward in the smartphone industry. The average consumer just does not have the disposable income to pay the prices that Apple and some other companies are charging. There will come a point where companies like Apple will need to lower their prices considerably. Otherwise, they will experience a huge dip in sales.