Why are iPhones so expensive compared to Android phones?

While entry-level Android smartphones start below USD 200, Apple's cheapest current model, the iPhone 16e, carries a starting price of USD 599. Across the industry, the average selling price gap between iPhones and Android devices exceeds USD 700.

Unlike most Android manufacturers that purchase off-the-shelf processors, Apple invests billions of dollars annually to design custom A-series chips. Manufactured on cutting-edge 3-nanometre nodes, these proprietary processors deliver industry-leading performance and exceptional energy efficiency.

Apple avoids cheaper plastics, opting instead for Aerospace-grade aluminium, titanium frames, custom Ceramic Shield glass, and surgical-grade stainless steel. These expensive physical components significantly increase manufacturing costs, but ensure remarkable structural durability and water resistance.

Apple designs both the internal hardware and the iOS operating system under a single roof. This tight vertical integration requires massive long-term engineering investments, but guarantees flawless hardware-software optimization that keeps devices running smoothly for years.

Inexpensively built Android phones often lose software support after two or three years. In contrast, Apple guarantees up to seven years of major iOS updates, security patches, and feature additions, expanding the long-term operational lifespan of every device.

An iPhone retains significantly more monetary value over time compared to rival devices. On average, iPhones retain roughly 62 per cent of their original retail value after two years of use, whereas standard Android devices retain approximately 41 per cent.

Apple monetises a tightly integrated ecosystem of premium hardware, software, and services like iCloud and Apple Pay. By maintaining a strictly controlled environment, Apple delivers superior data privacy, tighter security, and an unmatched multi-device user experience.