Being the most renowned tech brand in the world, Apple is famous for their products with great quality but quite steep prices. For example AirPods or Apple Watches seem to have an unexplainably high price. However, some analysts suppose that the Apple’s smartwatches and wireless headphones are becoming cheaper.
Neil Cybart, an analyst and a writer of the blog Above Avalon, published an interesting article according to which Apple artificially lowers the prices on Apple Watch and AirPods. These measures, Cybart says, are taken to extend the loyal customer base and “redefine luxury”. The analyst came to this conclusion after having compared average market prices on products of Apple’s competitors.
The main statement of Cybart is that it is really difficult to find a high-quality pair of wireless headphones that would cost less than AirPods. Their release turned the market upside down and forced all competitors to cut their prices. For instance, Earin headphones became 20% cheaper after the release of AirPods. And Motorola Verve Ones+ lost one third of their initial price. Cybart is certain that it wouldn’t have happened if Apple hadn’t decided to “remove the oxygen” from the market having priced AirPods at $159.
The same situation can be observed on the smartwatch market. Apple Watch Series One is one of the most attractive solutions for its $269. The analysis of the market supported the words of Cybart. The price of Apple Watch Series One is lower than other high-end smartwatches, like Fossil Q Founder or Samsung Gear S3.
In any case, even if you think that Apple’s products cost too high, it can be justified with their quality. The products from competing companies cost even more, so Apple still attracts customers and affects the market at the same time.
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