The iPhone 5 Phenomenon
The iPhone 5 has been out for a month now and you still can’t get one. The reviews have been both good and bad but it seems the iPhone 5 is as popular as ever with consumers. Personally, I haven’t heard anyone rave about it which begs the question what is the iPhone 5 phenomenon?
If you do a quick search on eBay for an iPhone 5 people are asking anywhere from $800-$1,200 for a 16GB AT&T version. The retail price for that same phone, new from Apple, is $499.99. Why are people willing to spend double the retail price for the same phone?
It’s not like Apple isn’t selling them anymore. You can order a brand new iPhone 5 from Apple today and have it delivered within 3 weeks. For some reason people want the iPhone now! They want to have it before anyone else.
Apple has created a luxury brand. It has created products that people want, not only for the functionality, but for the Apple logo. Having an iPhone is almost a status symbol now as much as a Louis Vuitton handbag or Rolex watch. Answering a call on your brand new iPhone 5 makes you cooler than the guy answering on an old flip phone.
If you look at a Louis Vuitton bag closely it’s hard to justify the retail price. Most bags are made with a small amount of actual leather and the rest is canvas. Yes they look amazing but is the quality really that much better than a bag that costs 1/4 of the price? Probably not. The same is true with Apple products these days. Yes, they have incredible features and are extremely easy to use, but are they the fastest? Do they have the biggest screen? No, not always.
The iPhone 5 phenomenon represents what is happening to the company. It is becoming a luxury brand. You are buying the Apple logo rather than the device.
by, Seth Marcus at Boca Raton Pawn
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