Overvalued in 2011 – iPad 2, iPhone 5 and Apple’s Attraction

By Posted 26 Feb 2011, 16:53

When you’re looking for some new technology in your home, and start visiting online stores and the local electronics store, making sure the product is not overpriced has to be on top of your checklist. Apple products are known for their quality – to most of us – and the old saying ‘you get what you pay for‘ still rings true today.

The tech enthusiast is smarter than ever, and the Internet has helped buyers make sure they get a good deal, but Apple likes to keep a hold on the process of making their products, from the design, construction, and the sale. So when would a buyer feel that Apple’s products are overpriced? Especially when Apple buyers mostly buy direct.

The attraction for Apple’s MacBooks and other devices is increasing, and this has been shown in their latest sales results. Complaints have started to show from some of PR’s readers, with some people saying Apple’s iPad 2 and iPhone 5 “will be overpriced” in 2011, and not worth the money when comparing the specs to similar priced products. Do you feel like this?

We cannot confirm if these people own Apple products, but those of you that do know the quality you’re buying in the brand Apple. We’ve heard sayings like “once you go Mac, you don’t go back”. With this in mind, its our view that you will own an Apple MacBook Pro longer than you would an equivalent competitor, the products feel that much more solid and reliable.

The iPad 2 and iPhone 5 in 2011 will be more scrutinized that previous years, and this will be due to increased competition, and more options for consumers. Will these products be overvalued? Maybe they will, but you can also bet their reliability will be extra-value too. Apple will need to bring down their price a little to be more competitive, which may lead to mini-iPhone and iPads or at least versions with reduced features, showing again that you get what you pay for.

Recent news of a March 2 event will likely settle the price expectations for iPad 2, with some blogs claiming it could kill the Motorola Xoom if prices are similar. Are you willing to pay a premium for the Apple brand?

  • Fuzileiro

    Funny, no iPad competitor to date has been able to match its price point so I fail to see how in the world the iPad is overvalued. Epic fail.

    • gawky4714

      I agree with Fuzileiro. I am having a very hard time seeing how the iPad and iPhone are over priced. The iPhone cost the same as any Android phone with the same features. Sure there are some cheaper Android phones, bit they have slower processors or other lower features. And to bring the iPad in this conversation is very confusing considering even the Galaxy Tab has a higher price tag despite a smaller screen, and the price of the Motorola Xoom has a higher price by $70 dollars.

      Is this article suggesting the new iPad and iPhone will have higher price points than the current models have?

  • that guy

    funny thing about people, we like to buy things that have the same functions as other things, but with a higher price. All at the low cost of a arm and a leg… ;)

    • gekko

      No product matches the similarities of apple. Apple's products do not follow trends, they set trends. The iPad is much more expensive but look at it's components and superior build quality. The iPhone is priced similarly with it's competitors but gives the convenient and unbeatable access to iTunes which I would pay more than $100 extra to get over any plastic android phone.

  • http://www.facebook.com/MartinMTurner Martin Turner

    The tech world has moved on, but many of the 'tech-dinosaurs' haven't spotted it. For years people used to argue 'I could build a similarly specced PC for less than the price of a Mac, even using the same quality components'. It was true, you could, although you couldn't get it to run Mac OS, which was the Mac's big selling point.
    The days when the value of something was pegged to a bit more than what it cost to build it yourself are now long gone. Tech stuff is now valuable in exactly the same way other consumer items are valuable: if it improves your life/makes you happier or more productive/makes you look (or feel) cooler, and it does it more than some other similarly priced item or set of items, then it's good value, no matter how much profit the manufacturer is making. If not, then it isn't. An iPad is the price of going to Starbucks about four times a week for a year. Does it do more for you than going to Starbucks? If so, and you have the spare cash, it's a good deal. If you've got enough cash to get an iPad _and_ go to Starbucks, then you can do both. If you don't have that much cash, you might be able to go to Starbucks once a week, but you can't get an iPad. A cheaper product — if available— might appeal, but you'd then do the same internal maths. The cool factor of Apple is part of that equation.

    • Gekko

      Exactly. It's the cult like behavior associated with emotional branding stemming from brands like Apple and Starbucks.

  • OKFine

    You do realize all Apple products are made by the same companies that make the same things for Dell, HP, Moto, etc?

    Quality? Well, they use a lot of aluminum and glass but the products seem to break just as much, if not more so, as any other brand in my experience.

    @Fuzileiro
    You obviously haven't looked very hard at tablets. There are lots of tablets for less than the iPad. As far as Android tablets, Google hasn't acknowledged them until they get Honeycomb. There's a very nice tablet floating around, forget the name, that has very similar specs to the Xoom but WiFi only for $400, though it still runs Android 2.x which isn't acknowledge by Google and people want the new Honeycomb interface so it probably won't sell well unless the XDA community puts out a Honeycomb ROM for it. Nonetheless, there are lots of tablets with very similar specs to the iPad for much less–hackers are loving the $250 Nook Color with Honeycomb hacked on to it.

  • Fuzileiro

    OK Fine
    The only thing to hit the street here in the US is the Galaxy Tab – smaller and more expensive, and the Xoom – again more expensive with a few more features in some areas but certainly not matching the current iPad. Comparing it to the Nook is absolutely laughable as the Nook doesn't claim to be a tablet computer, but an ereader – let's stay on point shall we. Saying there are many other competitors, but then not naming anything really doesn't prove your point. Many other tablets have been announced and a few have even been demoed, but nothing is being sold in the US (knock offs in China don't count) except for the Tab and the Xoom, and of course all the Microsoft crapware prior to the iPad. Try again.

    Semper Fi

  • RubyTools

    Value: Apple will always be a better price for what you get.

    Apple has lots of margin to undercut anybody so in the future if there should ever be a product and ecosystem that equals Apple's they simply cut the price and increase capabilities. Remember the iPod killers? Apple has the market sewn up for essential parts like screens and memory. The game may not be officially over but it isn't going to be long before everyone simply cedes the market to Apple.