why is apple so overpriced

It's not the rd/marketing. It's about making it a status thing.

Some of their competitors are terrible quality by comparison.

Apple has pulled one of the biggest cons of all time. It's convinced certain types of people that its products are worth hundreds of dollars more than the competition because it's a "niche" product, even though it provides less value and uses the exact same cheap components as the cheaper alternatives. Basically, its entire pricing model has been based on snob appeal/class consciousness and nothing more.

Case in point: I have a family member who's living hand to mouth and yet at the same time is a snob. Being able to have "classy" things makes her think that she's not poor and somehow better than everyone else who's in her exact same position but are living modestly within her means.

Anyway, she told me that her kid needed a computer for art class. I've been using computers for art and photography for over 20 years. Back in the day when Apple cornered the market on high end art programs put out by Adobe, yes, you needed to splash two grand on a Mac. But today, you don't need one anymore. You can get a budget PC and use budget Photoshop alternatives by Serif or even use The Gimp (which is free).

Being that she's in dire straits, I tried helping her. I said, "Look, get a computer for $400." And she was adamant that it had to be a Mac even though I explained to her that it didn't made a damned bit of difference whether she got a pricey Mac or not; her kid would still be able to do art work just the same. Nope. Had to get a Mac, no question, because of status.

Because they can! (And they should.)

It is basic business 101... Always sell your products as expensive as the market could bear. If not, you're risking your company's position and survivalablility.

There was a bike parts producer in Japan. They produces one of the highest quality of bike parts. However, the CEO is a humble traditional man, he made sure that his products only be sold as cheap as possible.

At first, his company became famous for affordable high quality parts. Years later, more companies joined this market and produce parts as good as them, but with a slightly higher price.

Most consumers don't know which brand is better, so they (wisely/stupidly) choose the more expensive ones.

Disclaimer: I had only bought two Apple products in my whole life, the original iPod touch and an iPhone 4S. Both are unused now. I realized that Apple products are grossly overpriced and I refuse to buy them anymore. But if other people find them useful and worth their hard earned money, good for them.

Status