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Apple Says: We’ll Never Make Cheap Phones

Ever the faithful servant of the financially affluent, the hardworking middle class and the socially mobile businessman, Apple has today announced their dedication to their current theme of outlandishly expensive tech – when Apple’s VP of iPhone marketing Greg Joswiak spoke out on the subject at the Code/Mobile tech conference held this week.

Joswiak, or ‘Joz’ as he’s affectionately know, spoke of how Apple’s last foray into the more budget side of consumer tech went horribly wrong.

“We were talking about some of the mistakes Apple made in the ’90s, and some of it was trying to do things like making cheap products that were chasing market share instead of chasing a better experience. You make that mistake once in your life, you’re not going to make it twice”.

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The experience of an Apple product is incontestably the best on the market, you’ve got a whole host of built in applications made for the phone, as well as infinite possibilities on the app store. However, for the price that these products get made for, Apple’s profit margins are staggering. We’ve heard from a teardown of the iPad Air 2 that the device costs Apple between $275 and $358 to build, with the base model selling at $499.

The iPhone 5c was cheaper, but sadly it bombed and sold awfully – Apple still has warehouses full of unsold phones.

This huge profit margin comes right out of the pockets of the consumers who buy these products – but where does it all go? As we know, Apple is one of the biggest innovators in the tech game, and making insane new products like the Apple Watch and the new 5k Retina iMac costs big money in research and development, or ‘messing about until it works’. This is ultimately where the money ends up going.

Joz had his own explanation for Apple’s high value products, highlighting that the company was the best, would continue to be the best, and make the best quality products possible thanks to the high asking price of their tech.

“our goal is to make the best products with the best experience… we [believe] that if we make a better product and a better experience, that there will always be a healthy market for that. And a healthy market doesn’t mean we have to be market-share leader.”

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It’s rare an Apple spokesperson doesn’t claim their company’s total superiority, so let’s take a minute to admire Joz’s humility. However, no matter how humble one spokesperson can be, Apple still is a market leader in almost all of its sectors, especially mobile devices, where the once-munched fruit is king.

Whatever the costs, you can sleep well-assured that your money goes to a good place when you buy a brand new phone from Apple… provided you buy the next one… and the next one… and the next one.

Source: Re/code

Via: Techradar

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