Price point

I’ve written a few times about Apple’s pricing issue, but I wanted to elaborate more. Apple’s products being expensive isn’t necessarily a problem for the company when it comes to established goods. But, when it comes to new products, that’s a problem.

When the iPhone debuted, it was heavily subsidized and available for a couple hundred dollars at most. It may have been more expensive than the cell phones at the time, but it wasn’t exactly the $1000 that Apple is asking for the iPhone X. People didn’t know that they needed or wanted a smartphone, but Apple’s pricing made it appealing enough for people to jump on.

The same dynamic was true of the iPod and the iPad. Their prices were not cheap, but they were not so expensive that it was prohibitive for the general market. These products went on to be massive successes.

Compare that to the Apple Watch and the latest generations of the Apple TV. Smartwatches and smart TV appliances fall solidly into the “things most people don’t know that they need” category, yet Apple placed both products at prohibitively expensive rates.

Not only that, compare them to the competitors: $179 for the Apple TV 4K 32gb versus $20 for an Amazon Fire TV stick. The cheapest Apple Watch Series 3 is $329 versus the Fitbit Alpha at $130 or the Fitbit Flex 2 at $60. In my opinion Apple’s devices are superior, the average consumer will likely not give Apple a chance due to the pricing. That’s a problem!