How Does Apple Earn Major Profits From Their Low Budget Products?

Apple, An American Multinational Technology Company was established in 1976 by Steve Jobs and co. It is now operated by Tim Cook. Apple is often known for it's extremely premium products. This company had a huge turnover of $53.8 billion last year. How is Apple managing to gain such huge profits from it's products?


Apple often recycles its product's body, frame, chassis, charging ports and other parts and use them in there new products. *Thinking why we don't get type c ports in iPhone's yet when the whole smartphone industry has switched to it? You know the answer now. iPhone increases its profit margins by recycling there product's components that can often be used in the making of new products.

It is noticeable that, iPhone 6,7 and 8 all have the same body, only the processor was updated along with few major components such as the camera and wireless charging pads, which was an add on for iPhone 8. Coming to the iMac and MacBook's the same strategy is used. This is the sole reason why MacBook Air’s each generation looked quite similar. *You must be thinking, Why do we have limited ports in MacBook's even after paying such premium? Apple wants you to buy it's other products without which your MacBook will be incomplete ,as it becomes a necessity in a long run.

Speaking of the new iPhone SE launch this year which was supposed to be a budget mobile launch for the Indian market as well as worldwide, came up with similar features of iPhone 8, with an upgraded processor and camera. *thinking why the iPhone SE costed a low budget? Now you know why! Launching a iPhone SE with a screen size of 4.7 inch was a pure gamble played by Apple, which played very well and got a pretty good consumer base. Though product had its particular fan base it did well in the market.

Considering Apple is doing this to save the planet, it's a good move. Apple claims to be ''Carbon Neutral'' by 2030, and will use recycled components for its builds.

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