To the average consumer "Why does Apple charge so much for RAM and SSDs?" For example, a 16 GB MacBook Air will cost $250 CAD more than an 8GB. Another $250 for 24GB. Is it crazy? Yes.
But the SSD is even crazier: +250 for the first additional 256 GB, but then the next 512 GB is only another $250, then the next 1TB is only another $250 - note, this is Canadian dollars, so it's cheaper in USD/American dollars.
The most common answer is "Because they can" or triggers a gollumesque-rage response: "Fuck Apple! Expletive expletive expletive! EXPLETIVE!"
No matter the opinions, the fact remains that there is demand for Apple products. And few companies are as good as Apple when it comes to navigating the relationship between price points and consumer demands.
Onto the answer: The goal ofApple, like any business, is to make as much money as possible. In order to do that, they want to maximize price point and user base. Everyone has their limits to what they're willing to spend on the products Apple is selling. It's less "Because they can" and more getting products to various consumer spend profiles: consumer group A will spend $600, Consumer group B will spend $800, Consumer group C $1000, group D $1200 (and so on, up into the many thousands of dollars). And Apple provides their machines at all of those levels of spending. It's not so much that they're charging $250 CAD for every 8GB of RAM, more like the additional RAM or SSD space is part of an arbitrary hardware increment targeting different spend groups.
The base model is good enough for most applications, so why do people bother buying the more expensive models that are only marginally better? Because people have a tendency to spend more, sometimes a lot more, for even the mere perception of better quality. In other words, the people who are willing to spend $2000 for a machine that's slightly better than a $1000 machine will spend the $2000. With video game consoles, it's why no one wanted the 8GB Wii U when the 32GB was available... even though the price was about 80 CAD different, and there was virtually no real advantage with the deluxe model--since regardless of whether you got the 8GB or 32GB model, an external drive was necessary for a digital library... You know, out of the minuscule number of people who actually wanted a Wii U.
The Apple philosophy kind of the reverse of the "Here's the base model for $1899, but here's the much better deluxe model for $1949!" Really, the two models are targeting the same level of spender, but the base model only exists to make the deluxe model look like a bargain - occasionally they'll put the deluxe model (or deluxe bundle) on sale for lower than the base model and make it look like a mistake. Sales are another way to do the Apple model, of offering products to different spend levels, only Apple's offers greater permanence to the price levels. In short, Apple's strategy is to get iOS and Mac devices into the hands of their audience, but instead of targeting one or two spend points, they target an array of dozens.
In the end, it's probably the best business strategy out there based on the success Apple has had with it. In the past 20 years, Apple has grown from 5 billion USD company to a company valued at 3 trillion USD.
(Note, this is 2024 random thought post #1, about 10 times longer than I wanted to make it).
But the SSD is even crazier: +250 for the first additional 256 GB, but then the next 512 GB is only another $250, then the next 1TB is only another $250 - note, this is Canadian dollars, so it's cheaper in USD/American dollars.
The most common answer is "Because they can" or triggers a gollumesque-rage response: "Fuck Apple! Expletive expletive expletive! EXPLETIVE!"
No matter the opinions, the fact remains that there is demand for Apple products. And few companies are as good as Apple when it comes to navigating the relationship between price points and consumer demands.
Onto the answer: The goal ofApple, like any business, is to make as much money as possible. In order to do that, they want to maximize price point and user base. Everyone has their limits to what they're willing to spend on the products Apple is selling. It's less "Because they can" and more getting products to various consumer spend profiles: consumer group A will spend $600, Consumer group B will spend $800, Consumer group C $1000, group D $1200 (and so on, up into the many thousands of dollars). And Apple provides their machines at all of those levels of spending. It's not so much that they're charging $250 CAD for every 8GB of RAM, more like the additional RAM or SSD space is part of an arbitrary hardware increment targeting different spend groups.
The base model is good enough for most applications, so why do people bother buying the more expensive models that are only marginally better? Because people have a tendency to spend more, sometimes a lot more, for even the mere perception of better quality. In other words, the people who are willing to spend $2000 for a machine that's slightly better than a $1000 machine will spend the $2000. With video game consoles, it's why no one wanted the 8GB Wii U when the 32GB was available... even though the price was about 80 CAD different, and there was virtually no real advantage with the deluxe model--since regardless of whether you got the 8GB or 32GB model, an external drive was necessary for a digital library... You know, out of the minuscule number of people who actually wanted a Wii U.
The Apple philosophy kind of the reverse of the "Here's the base model for $1899, but here's the much better deluxe model for $1949!" Really, the two models are targeting the same level of spender, but the base model only exists to make the deluxe model look like a bargain - occasionally they'll put the deluxe model (or deluxe bundle) on sale for lower than the base model and make it look like a mistake. Sales are another way to do the Apple model, of offering products to different spend levels, only Apple's offers greater permanence to the price levels. In short, Apple's strategy is to get iOS and Mac devices into the hands of their audience, but instead of targeting one or two spend points, they target an array of dozens.
In the end, it's probably the best business strategy out there based on the success Apple has had with it. In the past 20 years, Apple has grown from 5 billion USD company to a company valued at 3 trillion USD.
(Note, this is 2024 random thought post #1, about 10 times longer than I wanted to make it).
