Since its launch in 2007, the price of the iPhone has risen by more than 80% in much of the world to the benefit of profits.
According to a study conducted da Self, today buying an iPhone costs about $ 400 more than in 2007, with a price increase exceeding 80% in most countries where the smartphone is available. To be precise, the iPhone 13 Pro Max costs $ 437 more than the first iPhone released by Apple in 2007.
Obviously, this price increase is related to both increasingly advanced technologies that are integrated on iPhones, either to inflation which has increased over the past 14 years. However, the study shows that Apple has raised iPhone prices by about 26% more than the inflation rates of most countries. This means that buying a flagship iPhone costs $ 154 more in real terms than the first model.
As for theItaly, the price increase net of inflation was 27.88%.
This pricing policy allowed Apple to have the highest profit ever in the smartphone market, although the iPhone is not the best-selling device ever. Suffice it to say that, in the second quarter of the year, iPhones accounted for only 13% of global shipments, but when you look at profits, the story is completely different.
Counterpoint he claims in fact that iPhones accounted for 40% of global smartphone revenue and well 75% of profits. These are impressive figures, even if they are lower than those of the fourth quarter of 2020, when profits reached 86% thanks above all to the 5G novelty on the iPhone 12. The remaining 25% is divided mainly between Samsung and Xiaomi.
The study also notes that Apple also benefits from interoperability of its devices:
The convenience with which you can switch between a Mac, an iPad and an iPhone encourages users of an Apple device to stay within the company’s ecosystem by purchasing other brand devices. This is made possible by Apple’s significant control over both hardware and software, allowing seamless synchronization between various devices. Apple is likely to maintain this lead, allowing it to continue charging premium prices for its phones, thereby maintaining high operating profit margins.
Apple’s high profitability reflects the fact that the company only sells premium devices, while many Android brands also sell phones at low cost, effectively limiting operating profits. Not surprisingly, Apple holds 57% of the $ 400 + smartphone market.
at a range of prices, some of which are barely profitable or even lose money. The company noted last month that Apple had a 57% share of the $ 400-plus smartphone market.