- HOW MUCH DOES A BIG MAC COST WITH TAX PRO
- HOW MUCH DOES A BIG MAC COST WITH TAX PLUS
- HOW MUCH DOES A BIG MAC COST WITH TAX PROFESSIONAL
- HOW MUCH DOES A BIG MAC COST WITH TAX WINDOWS
Sawhney: I think that customer loyalty is hard to earn, but when you do earn the customer loyalty, love is blind. They are expensive because they know we will buy all of their things no matter how expensive it is. They're catering to people that really love ease of use and user-friendliness, and I think that probably that layer of design probably costs a little bit, and I'm happy to pay for it. I think because they make premium hardware and people are willing to pay for a simple, seamless experience. "I value elegance, I value design, I value simplicity, I value, 'It just works.'" And that is what inspires a lot of loyalty and allows Apple to extract a premium for their products. Sawhney: So, all our products become an extension of our personality. That handbag isn't a more functional bag, but customers still value it more. As with Gucci or Hermès, customers pay more because the logo is a status symbol. Instead of a technology company, think of Apple as a luxury brand. What makes Apple special is its ability to pull larger profits than its competitors. Obviously, Apple wants to make a profit, so the bill of materials has to cost less than the device. Not only was it more expensive, but the difference between the bill of materials and the retail cost was much greater. Narrator: Something changed when Apple released the iPhone 10.
HOW MUCH DOES A BIG MAC COST WITH TAX PLUS
As a comparison point, the Galaxy S10 Plus is about $420 below materials for a price of $999. Sawhney: The bill of materials is about $490 for a phone that is priced at $1,099. Narrator: And those components cost a lot less than a new iPhone.
For example, Sony competes with Apple in smartphones, but all of the camera sensors that go into an iPhone are made by Sony.
Sawhney: The components that go into making a smartphone are fairly standardized. Narrator: And iPhones have added great features, like OLED displays, faster processors, and thin bezels, but competing products have many of the same features. But are these products worth the premium? Apple loves to talk about its innovation. Apple has kept its proprietary lightning connector while removing useful ports, like the headphone jack and the SD card reader, forcing consumers to buy expensive dongles like its $39 SD-card-to. And Apple's accessories also have high premiums compared to non-Apple products.
HOW MUCH DOES A BIG MAC COST WITH TAX PRO
If you want a 13-inch MacBook Pro with 512 GB of storage, you have to pay $400 more than the base model. Narrator: With Apple's computers, these upgrades get even more expensive. So if you want more memory, you have to pay more Apple tax. Sawhney: Apple does something else that's a bit sneaky, which is that when you're buying the iPhone, you can't add memory to it. Apple had botched the messaging, and its $1,000 stand became infamous.
HOW MUCH DOES A BIG MAC COST WITH TAX PROFESSIONAL
Narrator: In truth, $6,000 for a professional reference monitor of this quality is comparable to the competition, but that didn't matter. And like the Mac Pro, they'll all be available in the fall. Claps turned to gasps when John Ternus unveiled a $1,000 monitor stand as an add-on for the $5,000 Mac Pro display. Apple's high prices reached meme proportions during the announcement of its Mac Pro in June 2019.
HOW MUCH DOES A BIG MAC COST WITH TAX WINDOWS
The 256 GB MacBook Air, for example, costs $1,299, but you can get a more powerful Windows laptop for over $100 less. Narrator: That premium is also known as the "Apple tax," or paying more simply because it's an Apple product. Sawhney: So that brand loyalty translates into a premium that they're able to extract from customers who are unwilling to switch out of the Apple ecosystem. Man, I'm super excited, I'm not even going to lie.
Marco Pierre White Jr.: I've been here about 36 hours now. Narrator: That reputation has created millions of loyal customers. Mohan Sawhney: Apple has, over the years, built a reputation for quality and the industrial design of its products. So what makes Apple products so expensive? Market cap is higher than the GDP of Switzerland. As the US's first trillion-dollar company, Apple's These prices bring in huge profits for Apple. When Apple released its new model, the price increased by 60%. It's even more dramatic for the Mac Mini. Three years later, Apple's flagship iPhone cost 54% more. Narrator: In 2016, the iPhone 7 started at $649.
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