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No, this will not be an accident on how expensive Apple products are, even if the company sells its fair share of eyebrow enhancers like the Mac Pro’s $ 699 Wheel Kit. It’s trying to find the reason why Apple product buyers are behaving as if it’s a luxury company, even though it’s apparently not Gucci, Ferrari, or, yes, Hermès.
In parallel with Introducing the $ 29 AirTag tracker, Apple immediately listed one AirTag Hermès luggage tag from $ 449 for a piece “heritage Barénia leather with contrast saddle stitching. “We save you the excitement, Barénia is leather. Admittedly, high quality but still just calfskin. The engraved AirTag is $ 29 and the rest is the selection of luxury goods.
That is the very definition of a luxury brand, to the extent that Apple is the most valuable company, even though on the front page it only sells consumer electronics, a business that traditionally comes with razor-sharp margins.
How does Apple do it?
- Emotional attachment: Steve Jobs made sure to sell people an access to an exclusive world with cult-like secrecy surrounding its inner function. Heck, it took iPad Pro 2021 for Apple to quote how much RAM it has inside!
- Fire power: Apple is the most successful brand in the world’s most visible and marketing heavy market. If your country had a company like Apple, would you still buy iPhones instead? It’s a self-fulfilling patriotic prophecy in the world’s most media-covered market for better or worse, and half of American users now carry iPhones and further reinforce its message.
- Quality user-centric products and ecosystem synergy: Steve Jobs was not the first to put a computer in his pocket, but he made it easy to use, and Apple continued to add the ecosystem to such ‘it just works’ products with a focus on design, software and performance, most successfully so far.
