The Reason Why Android Phones Are Cheaper Than iPhones
An unusual event that happened in London last year helps explain why iPhones are more expensive than Android phones and why Apple sells more iPhones than any Android vendor. Smartphone thieves returned an Android phone to its owner when they realized the device wasn't an iPhone. They know the same thing everybody else does: The iPhone is a highly coveted device that retains its value better than Android handsets. A used iPhone, if criminals can unlock the stolen handset, may sell for more than a same-year used Android device. That type of behavior from criminals reflects the general consumer's interest. After nearly 20 years of smartphone innovation and the original iPhone launch, the iPhone is more appealing than Android.
In 2007, Apple released the first iPhone, a smartphone featuring a touch-screen display and no physical keyboard. Soon after that, everyone in the industry pivoted to touch interfaces, including Google. While Apple kept refining the iPhone and owning more aspects of its development, including software and certain hardware components, Google focused on turning Android into an operating system available for free to smartphone companies.
Both platforms have evolved similarly since then. Android phones and iPhones will offer similar hardware performance and software features. Each can run the same apps and games, though Apple devices routinely get preferential treatment from developers, who create iPhone apps before Android. Android can't keep up with Apple in consumer interest, as many iPhone owners remain loyal to the brand and are unlikely to switch to Android. That allows Apple to keep iPhone prices high and even increase its average selling price. As for Android vendors, they're competing against the iPhone and also other Android brands.
Where does the iPhone value come from?
What Apple sells is more than a powerful and convenient mobile device for daily tasks. When you buy an iPhone, you're guaranteed a durable device made of high-end materials. The iPhone has a long battery life, and the device can be used for several years. Apple keeps the iPhone relevant by ensuring it can receive at least five years of iOS releases. While a five-year-old iPhone may not handle all the novelties in the latest iOS release, it gets the most features.
Such long-term software support is also a key feature for developers. A device that gets several years of OS and security updates will be able to run the most apps in the App Store, making iOS an important development platform. Also, new iOS releases are available the same day on all compatible iPhones. Apple's iOS also offers a few must-have apps, like iMessage and FaceTime. On top of the software, Apple also controls hardware with its custom A-series chip. This allows Apple to customize the iOS performance and efficiency.
Separately, Apple has developed a large ecosystem of devices. Those who own iPhones can get AirPods, Apple Watch, iPad, and Mac, which work well when paired with the smartphone. With the digital content from Apple's various stores, and considering the photos and apps stored on the iPhone, upgrading to a new Apple device every few years makes more sense than switching to Android and moving everything over. All these factors help Apple keep iPhone prices at higher levels than the Android competition. Apple keeps focusing on the premium segment, knowing that many consumers see the value the iPhone provides.
Aren't Android phones as expensive as the iPhone?
Some of Apple's rivals target the same iPhone price points with their flagship devices. However, there's intense competition inside the Android camp that can impact prices. Anyone can make an Android phone using Google's operating system and develop their own hardware. British smartphone maker Nothing, which entered the market just a few years ago, is the latest example. But a new brand will compete with every other Android smartphone vendor, not just the iPhone. Also, Android vendors make all sorts of devices, from entry-level to premium phones. While the newest Galaxy S flagship may start at $799, Samsung's most popular phones worldwide are the much cheaper Galaxy A models.
Android usually competes by pushing hardware innovations, like upgraded camera specifications. But all Android vendors have access to similar components. For example, many of them use the same Qualcomm Snapdragon chip for their flagship devices. As a result, Android vendors can't afford to increase prices significantly. Savvy Android buyers can always choose a cheaper device with similar specs from a competitor.
The Android OS also creates challenges, as phone vendors don't control the underlying operating system. They can develop the user interface that goes on top of Android, like Samsung's One UI, but it's Google that develops Android. As a result, Android vendors can't tailor the OS performance to the hardware as Apple does. Most of them also don't make their own mobile chips; only Google is in that unique position with its Pixel phones. Also, only Google launches day-one Android OS updates for its devices, while some Android vendors issue updates much later. Finally, the limited device ecosystem of individual vendors makes some Android devices less appealing.