I have always wondered why the iPhone seems to sell for more lofty prices then other smartphones. Now this handy little chart truly tells us what price on average we are really paying. Most people that buy a smartphone are on a contract. And because of this the actual up-front charge on the retail of the device is not seen or fully realized. Your phone company however has to foot the extra cost attached to the retail price that Apple or any other device maker will charge. That charge is the remainder of the balance of the phones value. For example, if you buy an iPhone for $200 with a 2yr contract, your carrier that you signed the contract with will pay Apple the remainder $500 to equal the full retail of $699. You obviously don’t see the $699 price rage, however that truly is the price Apple tries to get for each of its flagship smartphones in some variations. In fact if you order the 64GB of the newest model, you will end up paying somewhere close to $400, and your carrier will still pay the $500. That is a mind boggling $900 for a 64GB iPhone at its newest state. Obviously these prices do fluctuate a little depending on your location, but for the most part this is an honest representation of the cost of your iPhone.
Other companies also do this same thing. Samsung for example does the same thing, however they don’t charge quite as much for their smartphones and this their yield on each is less. This is clearly seen as we check out the chart below brought to us by Statista via: Mashable.
Obviously numbers don’t tell the whole story, but for the most part you can see how skewed the bar graph is. The iPhone on average sells for around $675 each. The blackberry is the next most pricy device at $324. And then Windows and Android follow as some of the lowest priced smartphones.
The iPhone itself is built with a lot more quality “feel.” I love the Android for everything it has done, but for some reason every time I use one, I feel like it is “cheap.” This could be due the the extensive use of plastic and synthetic components, or it could be due to the fact that it isn’t worth as much. Either way, Apple has an advantage because their users know they paid a lot. They also are treated with services that tops Android or any other device carrier. This all lends to the price and adage: “you get what you pay for.” These seems to be the truth when it comes to the smartphone market and changing prices. If only the iPhone had Android many of us would make the switch purely out of love for really quality. Android has been known as a budget phone. More people can afford Android and therefore more people end up buying them. Cheaper isn’t better and you can see this by the consistent prices seen in even the old iPhone 3G smartphone created years ago! You can also see that the old 3G phone still holds up to speed tests as seen here: iPhone vs. iPhone.
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