Each company has its own pricing philosophy, there are companies that prefer to offer a product at a very high price in the beginning, and then the price drops continuously with the passage of time and even before the release of the latest version of the device. As for Apple, it prefers to fix the price of the product from its release to the next generation. The companies prefer to change the pricing policy in different countries, but Apple does not, as it uses a different pricing policy. So what is Apple's way of pricing as well as its competitors, and should Apple review its pricing policy?
How does Apple price products globally?
Of course, you may see at first glance that the price of Apple devices varies from country to country, but in reality the prices are almost uniform. Apple relies on the US price as a basis for calculating prices. For example, the iPhone is sold in America for $ 1080 (after calculating taxes). If you move to Europe, it is assumed that 1000 dollars means 880 euros, but you find the price of the phone in France, for example, 1155 euros, or 1350 dollars, and there are 205 euros in VAT taxes, and upon transfer, you find that the price of the phone is actually 950 euros, or 1080 dollars, "the same American price." And when you go to England, you find the price is 999 pounds, and Apple explains that it includes 167 pounds in taxes, meaning its actual price is 832 pounds, or approximately $ 1051 ... as if the price of the iPhone is fixed globally. And its Arab price, “the Emirati store is 4229 dirhams and includes 202 dirhams tax, ie, its price is 4027 dirhams, or $ 1095.
The price of the iPhone is almost fixed worldwide, and the difference is the taxes, fees, and currency differences that vary in countries
How do other companies price their devices globally?
Looking at companies other than Apple, we find that there is no unified price and pricing basis like Apple. Rather, companies pricing according to each market separately. Perhaps the most prominent and recent example of our company Huawei with its more powerful Mate 20 pro phone, which was priced in the American market $ 1150 and the European market, 1080 euros, or $ 1230, and when it was launched in Saudi Arabia, it was provided at a price of 3299 riyals, or only $ 880, which is a huge difference. The same thing happened with the Samsung Note 9, which is available in Arabic at a lower price than the European and American price. Perhaps the basic example is Egypt, where it is officially available at a price of 18500 pounds at the time, or $ 1030, while its price in America was $ 1080 “with taxes in the two countries” despite the fact that the fees and taxes in Egypt almost twice surpasses America.
Companies prefer to set a different price for each market according to the local situation and different purchasing power
Why do companies price their devices in different numbers?
There are dozens of reasons that push companies to price different numbers for each country. Perhaps the main reason is competition, especially in the world of Android and its devices, and the second reason is the purchasing power. It is known that European and American users have a higher purchasing power globally than other countries, in addition to the fact that telecom companies there provide devices in installments. This is the main selling method, as often no one buys the device "with cash." Perhaps the most prominent example is OnePlus, which launched a 6T phone last month for the first time with T-Mobile, and this resulted in an increase of nearly 250% of its sales. As for the third world markets, let us speak Arabic. Most of us buy devices "with cash" and thus companies seek to provide a lower price that suits the countries' purchasing power and payment method.
Why does Apple demonstrate global pricing policy?
Of course, Apple did not announce the reason for its pricing, but there are well-known logical reasons, perhaps the most prominent of which is that Apple wants the maximum profit margin and will not give up one dollar from any device it sells. Perhaps the most prominent example is its fourth-generation watch, which obscures a fundamental feature in it globally and at the same time sells it at the same price and has no price discounts. Apart from the profit margin, the second point is that Apple does not restrict the buyer to any country. You can get a new phone from a store below your home in Cairo and then travel to Japan, for example, and go to the Apple store and request maintenance, and the maintenance is already done because the phone was registered with Apple when it worked the first day and you got your 365 days warranty. If Apple makes reduced prices in certain countries, let it be Hong Kong, because of the large number of American citizens traveling around the world, as well as the ease and cheapness of shipping costs to America, it will appear "fashion" that the phone is bought from Hong Kong and shipped to America, and thus Apple loses price differences.
And before you ask why the same does not happen with other companies, you must remember that the iPhone is a fixed phone in the world, the device that is sold in America is the same that sold in Europe is the same as that sold in Arab countries (the difference is GSM or CDMA according to the network), but when looking at Android phones In spite of its recent development towards unifying global sales, there are still differences, especially in the devices of the middle classes. This is an image, for example, of the Samsung Note 8 phone models, as it supports a single chip in countries and dual countries in other countries, and there are countries that the phone comes with an SD processor and another with an Exynos processor, any radical differences
Why should Apple review its pricing policy?
Despite the previously mentioned reasons, we believe that Apple should review the global pricing policy for more than one reason. In the beginning, there is a recession in the global economy, that is, a shrinkage in the upper class who is able to buy its devices, and at the same time Apple increases the prices of devices, which made a huge sector reluctance to buy the iPhone As his income decreases, the company increases the price as well. Currently, Apple has started to suffer from a decline in device sales in general and the iPhone in particular, and if you ask anyone who loves the apple whether you see an XS or iPad Pro or an iMac a bad device, they will answer no, it is great, but at these prices I will update my device every two or three years instead of every year . To clarify, we are not saying that Apple should reduce the price of the device globally. For example, the competitors of the iPhone are the Mate 20 Pro and the Samsung Note 9. Their price in America is now on Amazon $ 900 and $ 1030, any price close to the iPhone with the $ 1000 and here you do not need Apple to move the American price, it is close to its competitors ... But in the Arab world you find the price of the iPhone Phone 4229 dirhams / riyals for the note 3100 dirhams and Huawei 3300 dirhams (there are also lower prices), which means a huge difference of up to $ 300 and sometimes increases. Is this possible?
I am looking for the name iPhone Islam on the Apple Store and I cannot find it while I find the iPhone programs like the Qur’an appearing to me
Islam's iPhone application called Zamen
And you can search for our apps by name i4islam
I like Apple devices very very much, not just the iPhone, but all Apple products, but it is true that Apple fixes the price, but I see from my point of view that fixing prices is better than being everywhere at a different price
If iPhone X was right last year at $ 800, it would have broken the markets aggressively, just ...
It's Apple, gentlemen. It makes the device for $ 400 and sells it for $ 999
400 This is the cost of materials only, not the total cost, as there are manufacturing costs from manpower, research costs, salaries costs, exhibition operating costs, shipping, transportation costs, warehouses, etc., all are calculated and added to the product cost and then the price is determined, otherwise, how Apple will recover all these costs.
Even Apple's profits from a single device that pray to 150% -200% are justified by that. This is really blindness.
Mohammed, I do not justify it, and I always mention that the prices of Apple devices are very high and exaggerated, but the idea that the cost of the product is the cost of its materials only is a wrong idea. The store will have calculated you wrong and your pricing is wrong, and it will lead to your loss in the end. This is what I meant, whether for Apple or Huawei or any company, and this does not mean that Apple devices are not inflated with their prices and sums with the profit margin !!
And my comment below on this topic is the closest example of my constant criticism of the prices of Apple devices. I understand before you accuse me, may God fix you, as it is known that I am one of the members who criticize the most prices of Apple devices !!
I would like to say something about pricing. It is not only Apple who does that, but most American companies such as HP etc. The reason is the currency
The dollar differs from other currencies, as it is widely spread between countries, making it easier for US companies to assess the market because most US companies are calculated based on the strength of the dollar in the country to be exported to. The more the currency is less than the dollar, the better the investor has in terms of investment. Another example is Kentucky Chicken, Coca-Cola and Pepsi Likewise, their prices are almost uniform globally, and the reason is that American companies are calculated on the basis of every 3 people in the country 1 unable to buy and three or five people are able to buy on the basis of purchasing power and the low currency against the dollar
As for European companies, they suffer from aristocracy in investment. They do not care that all people buy the phone for the product because they are a unilateral class traditional mentality, the mentality of the center of the universe. There are European companies that burn their surplus products and do not make discounts so that all people can carry them.
How Apple beat everyone
Apple's prices are high and uniformly why
Most companies undertake this price discrepancy or price consolidation on a basis
1 Consumer Protection Act
2 Country Incoming Products Quality Law
For example, A company produces a $ 1000 laptop in America of the regular category and has 5GB DDR4 graphics and is issued to Arabs at the same price, but uses Nvidia VRAM DD3 graphics, and here the differences begin.
In the event that there is no law for the quality of manufacturing the incoming products
Every price variation is caused by a decrease in quality and performance
The prices are not the same, or at least the price in China is different, the price of the iPhone XS Max starts at $ XNUMX for XNUMX GB to $ XNUMX for a version of XNUMX GB, knowing that the phone is made in China.
I need the number of a member of the Zamen team to contact
We are honored to communicate with us via the e-mail of the site, my dear brother [email protected]
I think that Apple's increase in the prices of its phones and its race with time in gaining all possible tricks and tricks at the highest levels is due to the fact that the company realizes that the phone market is on the verge of a major recession after the market is saturated with abundant supply and the depletion of ideas in the field of telephony, so there is no longer anything that interests the user Companies are no longer able to provide anything new except for additives that are not of value. For a long time, companies have virtually stopped creativity. Facebook is not an important requirement, not even the fingerprint, and this is also said in the camera and the additions that are added to it in each new issue, and even making the screen on each body of the phone is not an issue that stops. He has to buy, but the companies create the need for the buyer and make him an important matter, while its absence is not considered a shortage of the phone, but rather its integral presence can be dispensed with, as well as I see that Samsung's prices are very close to Apple in the upper category of phones, and they both face marketing problems day after day and perhaps Apple is facing more difficulties because all the prices of its phones are close to each other.
Is the Apple iPhone XMax the US version working in the Gulf, and what are the differences? Thanks in advance
Yes, it works very naturally and the differences are at the frequency of the 4G networks prepared to work on, but it has no significance, especially in the last three years' iPhones, as the important frequencies in force in the Gulf are the American iPhone working on them, and American iPhones are sold permanently and continuously in Saudi Arabia in phone shops for years.
If you are a contributor to Apple, I say: We come back to the same fashion problem that may arise in the event of a difference in prices for Americans, but it is possible to reduce the price slightly so that if an American citizen thinks about shipping an iPhone from Hong Kong as you imposed, he will return to it at the same American price or Slightly less, with some financial benefit, you are not worth waiting for it to be shipped, which is a logical solution to a large extent ..
Apple relies mainly on its customers, I mean, the truth of the matter is that the foundation of the company was solid from the beginning in terms of the IOS system that is unique to it.
And other technical matters
And its old devices will not disappear at all, and some people still use them as indicated by some brothers in their comments, including the speaker, I still use the 5s in addition to the other iPhone
Its used devices are sold at good prices, of course, according to the use and the time of issuance, compared to other brands, meaning the consumer can sell his device after a period at a loss less than that of other brands.
But the question remains, will Apple keep all its customers if it continues to raise prices, of course no, because some devices have become very expensive and difficult to acquire, especially for those with limited income.
Apple devices have very exaggerated prices. In recent years, Apple has been creative in providing great specifications compared to competitors in the market, as there were few companies with medium specifications. Currently, competition is strong between companies as they offer high specifications and reasonable prices, especially Huawei, where I left the iPhone and moved to Huawei devices
Apple, as it is known, follows a single price policy based on the price announced at the conference in US dollars when announcing each new device. In my opinion, this is the best policy, and it is the policy followed in most international companies in various products, including luxury cars, high-end clothing (Brands) and luxury watches, so you find their prices They are close in all countries if we exclude what is added by some countries in terms of taxes, fees and differences in currency exchange rates, which differ from one country to another and change in prices, but the basic prices remain uniform or close, and I think this policy gives the consumer more confidence in the product and gives him the feeling that it is a global product with a price Globally fixed, which reflects more credibility in the price and the extent to which the product is worthy of this price, the product that you find in your country at a high price and in other countries at a much cheaper price makes you feel distrustful of this price and that the product is not worthy of it, unlike the product that you find a fixed price and maintains its value everywhere, such as gold and its precious metals. A fixed global price often rises and falls from time to time, but it is a global price that rises and falls, excluding taxes and fees that differ from one country to another.
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As for the question of whether Apple needs to change its pricing policy?
Yes, Apple needs to change its pricing policy, but not about the fixed price globally, because it is not under strong pressure and the fierce competition that Android devices live in. Not as much as the price hike.
Thank you for the useful article 🌹
In Iraq, the price of the Note XNUMX reached $ XNUMX, while the iPhone xs $ XNUMX for the smaller version was XNUMXV.
I think that Apple only fixes the price in its store, while it can get XNUMX% lower prices from suppliers other than the apple
Pricing policy or pricing strategy can be summarized as follows: Do not compete with your old devices until they die
That is, do not put a price for a device that people still buy, so the price hierarchy is what imposes the higher price, and it is usually an increase of $ XNUMX for each upgrade, and this is a good reason not to eat the apple itself and its symbol with the bite whose logo is to nibble wisely from the market, so it does not want to control all what people buy Rather, a delicious and filling bite is enough to be a trillion market value, in addition to not burying all the devices as Samsung does, and it becomes a laughing stock of those who buy the old because the price of the new is the same.
This policy is specific to the apple because it has a special operating system and a private market that usually targets the class that is prepared to pay more for extraordinary benefits in service, programs and safety. This triad is what we call the strategy "advantages over the competitor."
On the other hand, the apple gives "the skate" through the offers of its partners, as mentioned above, and it always comes after the device was launched a month or two, so do not rush to buy, otherwise you bite the apple instead of biting it.
A comment parallels an article, God willing, I enjoyed it more than the article ✨
Wonderful article 👍
Apple is known for its miserliness. It will not give up even a single cent, perhaps, and we, the people of goodness, will increase the prices because it is poor and poor and lacks more money.
It has no shame in sucking our blood and pockets.
Because its main slogan is to raise money in various ways.
But then the day will come just as it did for the companies that came for years and years on the throne of phones before.
Greed, miserliness, and collecting money here and there without taking into account the customer, this is the case of Apple ..
It is clear that sales of new devices fall and an increase in sales of older devices, which are almost parallel in price at times due to lack of inventory and the user does not find the difference that makes him pay the big price difference.
As for the increase in the prices of other companies' devices, it is unfortunately following the example of Apple, and we hope that all greedy companies will this year with financial losses that will make them retreat from the increase in the prices of their devices without justification.
I do not think that Apple will reduce a single cent, whatever the circumstances are due to its greed. It is a company that also steals and deceives the user. I love Apple products for certain reasons, but I hate the company and those in charge of it and I hate their policy
The one in Apple's currency is called greed, and unfortunately we, as Arab countries, are exploiting these needs of the worst, especially my beloved country, Egypt.
Unfortunately, I was hoping to interact today, because the topic of the article is very wonderful and deserves to be discussed, but I cannot do that. I will suffice to follow the opinions and views of the brothers.
Thank you very much
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