Paris Marx writes:
Apple’s margins have always been high, but they’re getting increasingly ridiculous as the company becomes even more greedy by trying to suck as much money as possible out of its customers.
Apple’s high prices are not greedy. It’s absurd to say so. Apple’s entire goal as a corporation is to maximize profit for their shareholders. If raising prices is the way to do so, then they should do so.
They are not selling iPads and iPods as a social service. Their goal as a corporation is to maximize profit. So if that means their prices are upward trending, maybe Apple is going to be the Rolex of smartphones. Their production cost of $400 or so odd dollars to make is really irrelevant. The fact is that they are able to sell at this price because they are bringing value to the market. The combination of sleek interface, innovation, and a safe ecosystem for customers is giving value to them.
Apple products are far safer to use than their Android counterparts. Over 80% of malware targets Android devices due to their vulnerabilities. Apple products are by default end-to-end encrypted and if you iCloud lock your phone, nobody can get your data or use your phone once stolen.
May I suggest that if Apple is able to increase their profits by increasing their prices, they are successful in reaching their goals?
Your op-ed suggests Apple owe’s the community something, or their prices need to be set at an ‘affordable’ level. If you don’t like their prices, vote with your dollars and buy something else. Economists will tell you to price your products where the intersection of supply and demand meet so that profit is maximized. Doing otherwise would be foolish.
If their prices are unfairly high, the competition needs to bring alternatives that users will gladly run to. High profits are a sign that they are doing something right and bringing value to customers. It’s a signal to the market that innovation will bring value and there is a potential for taking Apple’s profit.
P.S. I am an Android user.