Tony Bradley Contributor
I write about how trends and new technologies impact real people.
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Debunking The 'Apple Tax' Myth
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With the recent launch of the iPhone 6 line, and the expected unveiling of a new line of iPads and possibly MacBooks on October 16, Apple has been getting a lot of attention lately. One theme that seems consistent in almost any discussion of Apple is the idea that Apple products are overpriced—that there is some sort of “Apple tax” customers are willing to pay for the prestige and elitism of having the Apple logo on their smartphone or tablet. That perception isn’t really true, though—at least not universally.
I spent a couple decades under that same presumption—that Apple is just more expensive. I was in the market for my first post-Commodore 64 computer in 1984, and I wanted the Macintosh. My friend’s mother worked for Apple, so I had the privilege of hands-on experience with the “magical” new PC. My mother swayed me to take a more pragmatic path based on the fact that an IBM-compatible PC was cheaper, and that most of the people we knew owned or worked with IBM-compatible PCs so it would be much easier to find software and get help when I needed it.
Fair enough. I still wanted the Macintosh, though.
Regardless of my innate desire for a Macintosh, the pragmatic lesson stuck with me. I became an ardent and loyal supporter of Windows and Windows-based PCs, and I maintained that Apple computers and devices simply cost too much…until I started buying them.
It started with an iPhone—not the original, but the iPhone 3GS. Then it was the original iPad. Eventually I ended up with two Apple TV devices, and an 11-inch MacBook Air. What I discovered is that the adage “you get what you pay for” generally applies, and that comparable competing devices actually cost around the same or more.
For example, the 16GB iPhone 6 costs $802 on Amazon—unlocked and with no carrier contracts or subsidies—and the 16GB iPhone 6 Plus costs $908. Compare that with the 16GB Samsung Galaxy S5, which costs $800, and the Samsung Galaxy Note 4, which costs $860. These are similar devices, with similar features and capabilities, which also have similar prices.
There are certainly smartphones that are cheaper, but in most cases you’re exchanging something for the cost savings. I would argue, for starters, that you’re giving up iOS—but that is purely my own subjective opinion. What I’m referring to are more measurable things like the materials used, and the quality of construction, and the internal hardware components. To be fair, many devices actually “beat” iOS devices when it comes to comparing hardware specs on paper—but don’t compare in real-world performance.
Then there’s the MacBook Air and MacBook Pro laptops. I was in the market to replace my trusty Dell XPS M1330 laptop a few years ago. A similarly-equipped Dell laptop would cost in the $1,200-plus range, and it dawned on me that I would actually be spending more money than it would cost to get an 11-inch MacBook Air.
I bought the MacBook Air, and found it to be an exceptionally nice device. I eventually replaced it with a Surface Pro 3—which costs quite a bit more than the MacBook Air, and when I shop around for devices with similar processor, storage, RAM, size and weight, and other features, the Apple laptops are typically somewhere in the middle to low end of the price range of comparable devices.
Again, I realize there are hundreds of Windows-based laptops out there that cost significantly less than a MacBook Air and get the job done just fine. But, just as with the smartphones, you’re generally trading something for the cost savings. Maybe it’s a less powerful processor, or a cheap plastic case, or an inferior display. The point is simply that you can buy laptops for less money than what the Apple laptops cost, but if you want a device that is actually comparable to a MacBook you are most likely going to spend about the same or more.
A Ford Mustang has essentially the same components, features, and capabilities as a Porsche 911. From a strictly utilitarian point of view, both vehicles accomplish the same mission of transporting people or goods from one point to another. They both have four wheels. They both have a gasoline-powered engine. You get the idea. The Porsche, however, is engineered to higher standards, and is constructed of higher quality materials, and that comes at a price. Is that a “Porsche tax”?
Ultimately, I think the perception stems from the fact that there are no third-party Apple-compatible devices, and Apple only offers smartphones, tablets, and computers that are engineered to a higher standard and constructed of higher quality components and materials. There is no “cheap version”, whereas with non-Apple devices you can choose something comparable in design and construction to an Apple device—and expect to spend about the same amount of money—or you can decide what tradeoffs you’re willing to accept in order to save a few dollars and buy something cheaper.
It’s all just free market capitalism, and the choice is yours. Nobody is twisting your arm and forcing you to buy any Apple products. If you’re in the market, though, don’t let the myth of the “Apple tax” dissuade you from taking a look at what Apple has to offer.
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