Jeffrey’s talents and experience are highly prized around the Mincey Plantation. He makes things work; whether its a wonky Mac or a wonky fridge or anything else that isn’t behaving, he gets it back in shape.
Our talents blend well because I’m the family bean counter. Before the era of apps and online financial management, I had apps for everything; every bean was counted and accounted for. That’s my job. I count the many beans that go to Apple, too.
Apple’s products cost more than competitors, right? That’s the general missive about almost anything with an Apple logo on it. I don’t buy Apple’s wonderful Watch bands for $0 or $150 because $12 on Amazon gets me up into the point of diminishing returns rather quickly.
Here’s the problem most people have with iPhone. It costs too much. How often do you hear that? Common, right? Here’s the problem. Those people don’t usually understand the distinction between price and cost. They are not the same.
Price is what you pay up front to buy a product. Cost is the ongoing amount of money you pay to own and use a product. Again, not the same, but related. Resale is what you get when you sell a product you own to someone else. The amount you receive is then deducted from the original price, and that reduces the device’s overall cost.
Let’s say a new iPhone model is $1,000. A comparable Samsung Galaxy-whatever is $700 for similar features. That means Apple’s price is higher and Samsung’s price is lower by $300. Advantage, Samsung.
Assuming both devices work flawlessly for a few years and don’t need a screen replacement or new battery or anything of a service nature, and you decide to sell the iPhone and the best price you can get is $600. What’s the Samsung Galaxy-whatever worth?
I guarantee it will be less, and likely to the point of eliminating the difference in price tag between the devices.
iPhone is much like other Apple products and it has a very valuable built-in secret weapon.
Across the board, used Apple products command so much more for old models that they often wipe out the price differential of similar products, and can do the same for cheap-assed products, too. Those, after three years, command a resale value of next to nothing– down to zero– and when adding the price of a replacement that drops in value just as much in a few years– but combined with the first purchase, often equals the price of a new Apple product at a much higher original price tag.
Cost vs. price is not the same. Add resale value into the mix and my bean counter gene tells me what many of Apple’s customers already know. Apple has a secret weapon.