If you find that the iPhone price on Apple’s official website will remain at the original price, even before the launch of the new iPhone, the price will remain the same. Regardless of Apple’s official website or Apple Store direct sales stores, they will not cut prices or launch iPhones on special festivals. Limited discounts and preferential prices, on the contrary, Android phones will start to launch promotional activities every time during certain festivals or after a certain period of time. What is the reason that can keep the price of iPhone on Apple’s official website unchanged? In this article, let’s talk about why the official iPhone website never pushes special offers.
Since the launch of the iPhone, the prices of iPhones on Apple’s official website and direct-sale stores will remain unchanged. Except for suggesting that consumers can use the Apple Trade In exchange program for discounts, they have almost never launched discounts, except for other Only through channels will there be iPhone discounts, making many people curious about where to buy the cheapest iPhone.
Why has Apple never considered launching a promotional plan for iPhone users on the official website? This article will explain the main reason behind it.
Comparison of income sources of leading technology companies Apple and Google
In fact, Apple is a technology company that relies heavily on the sales of hardware products. Compared with its competitor Google, it relies entirely on systems, software and advertising as its main source of income, of which advertising revenue accounts for 74%. in exchange for monetary income.
If you have found that most of Google’s services are free, including Google Search, Gmail, Youtube, Google Maps, Calendar, etc., the intention is to let everyone spend more time watching videos on Youtube, get used to using Google search data and Google Maps navigation, and even You will interact in the community, and your behavior and habits will be recorded in the big data database by crawlers. The data also includes gender, age, equipment, browsing time, search history, where you have been, what you like, what you bought recently, and interests and preferences etc.
These user data accumulate over time and are quite huge, also known as big data. Big technology companies provide so much platform data, how can consumers see it in the first place? Then we need to rely on buying and publishing advertisements to increase exposure, just like when you search for iPhone price information, you will often see some advertisements ranked in the first search results, which can bring huge results to Google. advertising revenue.
There is a saying that is also very good”Free is the most expensive!“, which means “If you can enjoy free services or content without paying, then you are not a consumer or user, you have turned yourself into a commodity.」
Therefore, Google’s main source of income is not like Apple, which can use the sale of Android phones or software as the main source of profit. Among them, the contribution of advertising revenue is more profitable than selling hardware, and the part of Google’s hardware revenue can only be classified as miscellaneous.
Compared with Apple’s revenue, 78% of it comes from iPhone and Mac computer hardware sales, and the remaining 22% is software services, so Apple will pay more attention to hardware sales and profit maximization.
iPhone official site price cuts won’t boost profits
Some people may think that the price cut on the iPhone official website can also increase mobile phone sales and income, why not?
The main reason is that if Apple’s official website holds an iPhone special event, it will cause a sharp drop in the original profit, and the cost of hardware research and development in the technology industry is too high, and human resources must be invested in the development and maintenance of systems, software and services. Cause Apple’s pricing strategy in iPhone price will be so expensive.
Of course, Apple’s target customer group for the iPhone is high-end users. Apple hopes to provide them with better products, services and security, so that users are willing to pay for it and stick to the iPhone.
In terms of hardware profits, iMac hardware sales accounted for only 7% of the global computer market in 2019, but revenue accounted for 14% of the total market. This also makes Apple’s hardware profits much higher than its competitors.
Of course, the hardware strategy is also widely used in iPhones. Since Apple released the first-generation iPhone in 2007, the price of 499 US dollars has become the most expensive mobile phone on the market. At first, the market thought that iPhones were too expensive and difficult for ordinary people to spend. Jobs didn’t care about the high price of the iPhone at all, and eventually Apple’s mobile phone sales exceeded market expectations.
Over the years, the iPhone has accounted for about 60% of the US smartphone market, while the second-ranked Samsung mobile phone has only a 24% share, which also allows Apple to dominate the smartphone market and bring more profits and revenue through iPhone hardware.
Apple will also encounter the problem of saturation in the mobile phone market, and the competition of Android mobile phones is becoming more and more fierce. How to ensure the profitability of iPhone hardware and how to continue to grow year by year? In the end, Apple adopted a strategy of raising the price of iPhones and launching models with different specifications to allow more consumers to choose, effectively resolving such problems.
The most obvious is from the iPhone 14 series, Apple is trying to replace the basic and flagship models, adopting a dual-processor and hardware segmentation strategy to guide more consumers to buy iPhone 14 Pro series mobile phones, as can be seen from the market sales response, Apple has succeeded in making consumers willing to pay more for expensive Pro series flagship phones in pursuit of iPhone specifications. This has also allowed Apple to increase its profits in iPhone hardware again, and its annual revenue can also grow year by year, so Apple does not need it at all. Hold an iPhone price reduction sale on the official website.
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