Big companies have big secrets and often those secrets remain hidden. The entire financial structure of Apple made people curious, but their success always covered the big questions. Well, no doubt they are changing technology one product at a time, but Apple’s extremely pricey products have deep secrets behind them. They marketed iPhone SE very well and made people believe, the price tag was mainly due to amazing features. But a teardown revealed something shocking. The total cost is $160, which $239 more than the printed price. Is it extra price due to Apple’s sky‐high brand value? This question can’t be answered clearly as many conclusions are possible.
Apple already uses assembled products, so this huge price difference makes no sense. Moreover, the product has nothing to amaze the user, so the entire deal is a bad one. As the storage space increases, the price increases exponentially and at one point it becomes unacceptable. For a $10 increase in production cost, the price goes up by $100. This is maximum profit and the surprising thing is Apple is still managing to sell phones in this way. Memory chips are cheaper and that shouldn’t affect the price, but things are different here. They still persuade customers to buy the bigger model and some features are missing in this smaller memory version.
Analysts are clueless, they can’t solve this equation. But after consumers find out the details, they will change their mindset. Apple’s new business plans are forcing the people to re‐think and if brand loyalty changes, massive problems will surface quickly. iPhone 5c was a flop and now in 2016, iPhone SE took its place. Older models were often sold at low prices and by doing that; the company shifts focus to mainstream phones. The display technology is not costly and the suppliers are relatively new.