How many Apple products do you own? This is somewhat presumptuous, but “Why so many?” My unofficial Mincey Plantation survey of family, friends, neighbors, and co-workers tells me that iPhone users often have iPads and Macs and more recently, Apple Watch.
What does that tell you? Apple knows how to get more of our money than Dell, HP, Samsung, Google, or anyone else other than perhaps Amazon, Target, Costco, and Walmart. In the past few months Apple has introduced a number of new products that have two things in common.
First, I want each one. I don’t need each one. Needs and wants are not the same but new iPhones, iPads, Watch, and Mac mean more opportunities to splurge on new hardware.
Second, Apple’s price tags have been going up across the board. Sure, you can find some older items on sale (the entry-level MacBook Pro line is an example), but across the board Apple raised prices.
- iPhone Xs Max – Up to $1,449; more than a MacBook Pro
- iPhone XR – Far more expensive than the original iPhone
- iPad Pro – Up to $1,899 with Wi-Fi, Cellular, and 1TB SSD
- Mac mini – Yes, it’s more powerful, but also $300 more
- Watch 4 – Watches used to last 20 years; Watch changed that
Apple gets more of our money because of these two actions.
First, Apple makes products that we want; not so much need as want; as in right now. If you have an older iPad are you not inclined to consider a new iPad Pro? It’s smaller in size but with better display, better keyboard, and a Pencil that sticks and charges to the iPad’s side. What’s not to like? What’s not to want.
Second, Apple has been raising prices because sales units for most of Apple’s major products have not been growing. The way to extract more money from the same number of sales is to raise prices. All of the above Apple kit released in the past few months have new price tags and they are not lower; they’re higher.
Apple gets more of our money because they make products we want to buy even if we don’t need to buy them, and they charge more for the privilege. Nobody does that better than Apple.