People Are Buying Apple As A Luxury Not A Necessity

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When it comes to computers, smartphones and wearable gadgets like a smartwatch, Apple seem to have captured the hearts of almost everyone from the all over the world. By making sure that they give only the best gadgets they could make. According to tech experts, the fact that Apple has their very own operating system, makes them have a one step ahead of the other techs. Samsung, one of Apple’s greatest competitor, has Android for their operating system and it is just like every other tech brand. The features of Apple products are incredibly unique that no one could imitate it, however, there is only one catch: experts seem to believe that Apple is more of a luxury than a simple gadget, keep reading to find out more.

Apple releases all new Apple Watch Series 3

GADGET OR LUXURY?

According to a report from CNBC, HSBC banking said that people normally buy Apple products not because they want it as a gadget, but they actually see it as a luxury just like Louis Vuitton. This month, Apple released its special 10th anniversary edition of iPhone and it is considered to be their most expensive model according to a Wall Street firm. It is known as the iPhone X and was released at the beginning of November, and its model price starts at $999. Despite the positive reviews that it got this week, it still somewhat very expensive for just a smartphone, or is it?

The iPhone X actually managed to hit an all-time high in the premarket session after the very high preorder demand on iPhone X. According to analyst, Erwan Rambourg, “Recently, with an offensive retail strategy and in some cases comparable price points, Apple has competed with the likes of Louis Vuitton, Cartier or Prada which made us raise the question: is Apple a luxury stock? The answer is yes.”

According to analysts, Apple products can be considered as a luxury

He also mentioned that Apple’s retail penetration may actually grow substantially since it already has the capability and the capacity to do so. They managed to poach talents from other luxury companies which can all give their thoughts into premiumization. The firm actually reiterated its $193 target when it comes to Apple shares to be able to represent the 16 percent. The analyst also noted that Apple actually has more than 500 retail stores that gets more than 500 million store visitors every single year. “The brand is just scratching the surface of its retail potential. Direct-to-consumer online sales and retail sales together represent 25 percent of total sales today at Apple, and this should only increase in our view. We do not believe there is a call for now in terms of retail penetration,” Rambourg noted.

APPLE AIMS FOR LUXURY

According to Wall Street Journal, Apple Inc. is aiming to be technology’s luxury brand, and they indeed manage to get it, this is because they have already crossed into the high-end fashion with their smartphones as well as their wearable technology like the smartwatch which is obviously an accessory. MG Siegler of Google Ventures said however, that it is not exactly about the product themselves, but more of the brand. “It’s not about the watch, per se. It’s about what the watch stands for: a new Apple that is just as much about fashion as it is about function. This is no longer Steve Jobs’ crossroad technology and liberal arts. It’s the fork in the road between technology, liberal arts and fashion.”

Apple’s independent analyst, Neil Cybart, had something to say regarding the matter as well. “Reposition Apple as a premium mass-market luxury brand. Apple is currently mass-market brand, selling gadgets to addressable markets that number in the hundreds of millions,” he explained. Cybart also said that it is like entering a new territory for Apple, but then when you actually walked into the Apple Store, you wouldn’t only see rich people, because it doesn’t just speak luxury, it is for the mass public despite of its high-end products. In fact they even have different choices of smartphones to choose from with different prices as well so that both middle class or people from the high society will be able to get their hands on an iPhone.

The latest and considered to be the most expensive iPhone is now out and available for everyone in most countries and people are going crazy over it despite its price.

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