iCraze

Alyssa Meka

Mr. Jim Reuter

Economics

16 September 2014

iCraze

Whether we like it or not, the current generation consists of a flurry of typers, tappers, and swipers who are intrigued with, more than anything, their electronic devices. From smartphones to tablets to wearable fitness devices, the gadgets that entrance us are bending the limits of technology, as well as the barriers of our budgets. But how far will companies stretch to introduce “the new thing”, and just how much is one person willing to pay for it?

It seems the answers to these two questions are exactly the same- limitless. Take the Apple company for example. Since the production of the first iPhone, they have introduced ten different versions of the phone. For each of these new versions, Apple has claimed to have added different assets and/or improved features. As these features have accumulated, the price has too. One source claims that “phones account for more than half of Apple’s total sales” and says that in the past year alone, Apple “has sold more than 163 million of them” (“iNeed?” Time Magazine). With production costs of these phones ranging from about 170 to 220 dollars, the company is definitely profiting from phones that are bought without a contract “rang[ing] in price from $649 to $849” (“Here’s How Much it Costs Apple to Build New iPhones” CNBC). This profit only helps the company to further advance and refine their product and make it cater to our every need, even if we weren’t previously aware of certain needs the producers at Apple are addressing.

This is exactly part of the draw of Apple products and the similar products of other tech companies. It is stated that the advertisement and portrayal of the gadgets “takes products we never wanted and convinces us we can’t live without them” (“iNeed?” Time Magazine). Take this recent ad  for example. It stresses that the iPhone can help us achieve our wildest dreams. Even so, companies like Apple often dance around the idea of a new product when introducing the hottest new commodity. It is apparent that companies like Apple are skilled in the art of refinement, taking what has previously not passed the test of the market and mastering it to make it useable. Could it be only their advertisements making it seem like we need their products? Or is it also the draw of anticipating a new product that keeps so many people loyal to the company? Here is a compilation of most of the products to this date.

Whatever it is, it seems that Apple has literally struck the gold mine (really, they have a gold iPhone) with their products over the past years. Just look at this dotplot of their sales from 1990 to 2011.  

That’s one heck of a steep increase! With the release of their new products soon, the much anticipated iPhone 6 and Apple Watch, these sales can only increase.

Aside from the fact that Apple has had the ability to increase their sales by billions throughout the years, they have also been able to multiply the amount of returning customers they have. By creating products that cater to the needs we have to stay organized and connected, Apple has been able to generate millions who both want and love the products because of the many capabilities they have. Despite the high costs, Apple has been able to create quality products that offer benefits many customers find far outweighing the pains to their bank account. Do you think it’s worth it?

 

Works Cited

Adhikari, Richard. "Apple's New IPhones: Ho-Hum and Controversial Too." TechNewsWorld: All Tech. N.p., 11 Sept. 2014. Web. 15 Sept. 2014. <http://www.technewsworld.com/story/81031.html>.

"Apple - IPhone 5s - Dreams." YouTube. YouTube, n.d. Web. 15 Sept. 2014. <https://www.youtube.com/watch?v=PQBTd4xF6tU>.

"Evolution of Apple." YouTube. YouTube, n.d. Web. 15 Sept. 2014. <https://www.youtube.com/watch?v=KvdVhl4FlEc>.

Goldman, David. "Apple's Financial Empire." CNNMoney. Cable News Network, 25 Aug. 2011. Web. 15 Sept. 2014. <http://money.cnn.com/galleries/2011/technology/1101/gallery.apple_sales/>.

Grossman, Lev, and Matt Vella/Cupertino. "INeed?" TIME 22 Sept. 2014: 40-47. Print.

Thompson, Cadie. "Here's How Much It Cost Apple to Build New IPhones." CNBC. N.p., 24 Sept. 2013. Web. 15 Sept. 2014. <http://www.cnbc.com/id/101058725#.>.

       

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