Why Apple products are so expensive?

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Why do Apple products have this reputation to begin so expensive? 

We could understand that the original iPhone and Macintosh were way ahead of its time and they were pricy but they were the original line of new device category and they were original; they defined the category.

the original iPhone and Macintosh were way ahead of its time and they were pricy but they were the original

But now in the present day, there are plenty of other manufacturers release "do it all" type smartphones and really good looking computers. So how Apple still in 2020, justifying charging a premium?

So how Apple still in 2020, justifying charging a premium?

A short and sweet answer is "the brand!". We are at least partially paying for the brand. Similarly to other companies that tend to charge more for their product that isn’t necessarily better than their competitors in terms of performance or features.

Apple has successfully positioned them as a "Lifestyle brand" that can get away with selling their wears with higher prices simply because people are willing to pay more for the logo. 

Apple has successfully positioned them as a "Lifestyle brand"

But this doesn't mean that Apple products are just overpriced junks. Part of the reason that they have this luxury image in the minds of their fans is that they have consistently focused on the higher end of the market. 

Ever since the launch of the original iPhone, they have put more consideration into design, features, and component quality compared to costs. Also, this has been true to their other products like the MacBook.  

Ok now let's consider the lower end of the market. It is indeed valuable for companies such as Walmart, Macdonald's. But Apple hasn't wanted to risk; cheap out to make lower-end products that could compromise their "Brand reputation".

Especially after the failed products that they did design to be more affordable. Like the iPhone 5C. 

And there is more to manufacturing than just the building material cost of the actual device. Apple invests heavily in the development of new technologies and manufacturing processes. Of course, there were news headlines regards of poor treatment to the contract workers in other nations' factories. Generally, Apple devices are not cheap to produce. Combine this with the fact that Apple is relatively picky about the component resourcing and when they create a product with those recourses, normally there are lines of customers outside of Apple Stores to buy them and Apple should consider maintaining the supply chain to meet the consumer demand. 

Also as a company that builds their own hardware and the software, Apple has to sink a large amount of money in software development since they have their own proprietary platforms rather every other Android or PC manufactures rely on Android or Windows. 

For example, Android device manufacturers can get Android for free and customize the software to be compatible with their own hardware capabilities. The same goes for the Windows devices accept manufacturers have to purchase a license to pre-install Windows on their devices. But these small costs are comparatively way cheaper than what Apple does by doing its own software for its own platforms. 

Apple builds and maintains, macOS, iOS, WatchOS, TVOS, and backend services like iCloud, iMessage, and Apple Music by themselves which drives up their costs further and someone has to cover those costs 😉. 

Also should mention that the native and closed nature of Apple's platforms which create an ecosystem of their own drastically attract customers back to their own ecosystem which is that other manufacturers failed to do.  

Having so tight integration of software and hardware with each other allow for better performances and reliability along with less acceptability to malware. This does not mean that Apple devices don't crash or any but Apple managed to maintain a good track record of device performances and after service that created a huge base of loyal customers that tends to come back for newer and newer products every year. 

costs of marketing

Finally, we have to consider the costs of marketing. Some initiatives are obvious like ads on TV, the hype they build around their device launch events. But some of their costs are comparatively low. 

For example, let's take Apple Store. They do serve as a place that anyone can walk in and buy an Apple device but they spent a huge amount on building those Apple Stores on very costly and highly visible locations and they design their stores to stand out with more iconic designs and the experience in the store is just let's say "distinctly Apple".

iconic designs and the experience in the store is just distinctly Apple

Also, they host free workshops, tutorials because they build brand loyalty.  

Yes, Apple has been recently stepped into more reasonable products like $330 iPads and iPhone SE. Apple had to do this because competitors build more feature-packed products for way low prices and they are selling very well.

competitors build more feature-packed products for way low prices and they are selling very well

Apple has used and interesting combination of product strategy and marketing hype to keep people coming back for more.