If you clicked on this video then you’veprobably heard about Apple’s Wheel Kit that they’re selling for $700, which is prettyshocking considering you’d be spending the same amount on four metal wheels, as on aniPhone 11.
So what are these wheels for? Well, they’re designed to be used with theMac Pro in order to make it more portable.
Whether that means moving it around a studioor moving it across town, rolling the 39-pound Mac Pro is much easier than picking it upand lugging it around.
But the purpose of these wheels isn’t theissue here.
What people really what to know is why theycost so much.
And that’s exactly what I’m going to explain.
I’m Greg with Apple Explained, and if youwant to help decide which topics I cover in future videos, make sure you’re subscribed,and voting polls like this one will show up in your mobile activity feed.
Now before we begin I want to formally announcethat I have created a gaming channel called GregGames.
I just posted a Super Mario Maker gameplaythat left me a little frustrated, and you’ll see why.
I’ll post a link to that in the descriptionfor you to watch after this video.
Alright so why exactly is Apple selling $700Mac Pro wheels? Well, there are three reasons I’m goingto cover, starting with what I call Apple’s Accessory Tax.
If you own an iPhone and stopped by the Applestore to buy a second charging cable and wall adapter, you’ve may’ve been surprisedby just how much Apple charges for those accessories.
You’d end up spending a total of $50.
Which may be surprising if you’re comingfrom an Android device, since companies like Google charge 30% less for those accessories.
But Apple’s markups are even higher on Macaccessories.
Take the Magic Keyboard for example, whichcosts $100.
A comparable PC equivalent like the MicrosoftBluetooth Keyboard is half the price, at just $50.
But there’s something else I want to pointout here. Because if you notice, Microsoft’s keyboardincludes a numeric pad, while Apple’s doesn’t.
And if you do want a numeric pad on your MagicKeyboard, it’s going to cost an extra $30.
And if you want that keyboard in Apple’ssleek space grey color, it’s going to cost another $20.
Bringing the total price of your new Spacegrey Magic Keyboard with numeric pad to $150.
Three times more than what Microsoft is offering.
And that disparity in price is the Apple AccessoryTax.
But how do they get away with charging somuch more? Surely Mac users would simply buy Bluetoothkeyboards from other companies in order to avoid paying Apple’s premium price, right? Well, that isn’t what happens in most cases.
Because the reality is that Apple has a monopolyon Apple products.
Which means, a customer buying Apple’s MacMini who loves the way the product is designed, is much more likely to pay Apple’s accessorytax in order to have a keyboard and mouse that matches the industry-leading industrialdesign of their Mac.
But it’s also important to understand theconvenience factor.
If you’re at the Apple Store buying a MacMini and need a keyboard to go with it, it’s much easier to simply buy whatever is availableat that store.
Rather than making a separate trip to BestBuy or a microsoft store in order to try and save some money.
But I admit that comparing $700 Mac Pro wheelsto Bluetooth keyboards isn’t really a fair comparison.
Mainly because there are hundreds of companieswho make Bluetooth keyboards, and customers can pick whichever one they want regardlessof what computer they’re using.
But if you own a Mac Pro, and you want itto have wheels, you have only one option.
Which brings us to the second reason why Apple’scharging $700 for wheels. And that’s simply because, customers haveno other option.
When you go to McDonald’s and ask for extrabarbecue sauce with your McNuggets, you’re forced to pay thirty-five cents per packet,because you can’t get that delicious sauce anywhere else.
And that’s exactly the problem Mac Pro customersfind themselves in. If they want wheels, they have to pay whateverprice Apple names.
It’s as simple as that. We’ve actually seen this play out beforewith products like the one-thousand dollar Pro Display XDR stand.
Customers buying the $5,000 display were forcedto pay the inflated price for its stand, since Apple was the only company offering it.
But it’s important to consider where theoutrage over these high prices are coming from.
When it comes to the Pro Display XDR, mostcustomers buying it didn’t have a problem paying the extra $1,000 for a stand.
And the same can be said for the Mac Pro wheels. Because if you really think about it, thecheapest Mac Pro costs $6,000.
And if you want the best performance money can buy, a maxed out Mac Pro will run you $53,399. So suddenly an extra $400 or $700 for wheels doesn’t seem too concerning.
Also, many of Apple’s Mac Pro customers are businesses, who are even less price sensitive than everyday consumers.
Now that doesn’t negate the fact that Apple charges insane prices for their accessories, but it’s important when considering why they choose to price these products so high.
And consider this: If you’re Apple, you under stand that customers who don’t need Mac Pro wheels, won’t buy them.
No matter how cheap they are.
Even if these wheels were $100, you still wouldn’t have a reason to buy them if you don’t own a Mac Pro.
And by the same logic, if you do own a Mac Pro and want an easy way to move it around, you need to buy these wheels.
No matter how expensive they are.
And that’s exactly why Apple gets away withch argi ng $700 for Mac Pro wheels.
Customers who need it don’t have a choice,and if they’re spending thousands of dollars on a Mac Pro in the first place, they canprob ably afford it.
Now the last reason why Apple is charging so much for some wheels, has everything to do with marketing.
Historically, Apple has a reputation for charging quite a bit more for their products than other companies.
The original Macintosh was $2,500 in 1984.
Which is quite a bit more than the average$1,500 price of a personal computer at the time.
And that trend continued throughout Apple’s history.
Now some may consider this to be a bad thing.
After all, if a company is known for charging higher prices than their competition, customers would likely avoid that brand.
But Apple occupies a very unique space in the tech industry.
Their aren’t only known for being expensive,but also being incredibly well designed.
Their industrial design team is actually the most awarded design group in the world, and several Apple products haven proven to be so iconic that they’re displayed in museums.
Something that can’t be said for most tech companies today. And this premium image has proven to be ahuge asset to Apple.
Customers don’t view the company as an average smartphone or computer manufacturer like Nokia or Dell.
They see Apple as a luxury brand that sells some of the most expensive and desirable tech products on the market, and that image only helps Apple.
But consider what they’ve been doing for the past year.
The 2019 iPhone 11 was introduced with a $50 discount over its predecessor, the 2020 Mac Book Air received a $100 price drop, and the new$400 iPhone SE is one of the cheapest smartphones Apple has ever made.
And this can actually be dangerous for a company like Apple, since releasing low-cost products can damage their reputation as a luxury brand.
Take the clothing company Champion for example.
When I was a kid, they were one of the cheapest,lowest quality clothing brands out there.
But by partnering with expensive high-quality brands like Virgil Abloh and Supreme, they’ve managed to completely reposition them selvesin the clothing market from a bargain bin brand, to a luxury brand.
And it had everything to do with how much they were charging for their products.
Now that same philosophy can be applied to the tech industry.
But there’s one big difference.
Becoming a luxury tech brand has proven to be much more difficult.
And with Apple releasing so many low-cost products recently, their premium image is at stake.
That’s why it’s important for Apple tode fend their reputation as one of the most expensive tech companies in the world.
But how exactly do they accomplish that? Well, they did it by releasing ridiculouslyoverpriced products that only a few people would ever buy, or even need.
For example, the $700 Mac Pro wheels are on lya product Mac Pro owners would buy.
The same goes for their $1,000 stand.
There’s no point in buying it if you don’t already own a $5,000 Pro Display X D R. And remember the $10,000 gold Apple Watch Edition? That was the perfect opportunity for Apple to boost their luxurious image.
Not only does the $10,000 price tag raise the product’s perceived quality, but it also gets the attention of some of the mostin fluential figures in society today.
Drake, Be yonce, Kanye West, and Katy Perry,were all seen wearing Apple’s $10,000 smartwatch.
This level of promotion helps advertise the product and give it a ‘cool’ factor that other smartwatches don’t have.
Because keep in mind, the $10,000 Apple Watch was certainly ridiculous, but think of how many $350 models it helped sell.
And that’s exactly the strategy Apple has been successfully using over the years.
Positioning themselves as a luxury brand by selling a few extremely high-ticket items, and leveraging that premium image when offer in low-cost products.
Alright guys thanks for watching, don’t forget to like and subscribe, and I’ll see you in the next video.
So what are these wheels for? Well, they’re designed to be used with theMac Pro in order to make it more portable.
Whether that means moving it around a studioor moving it across town, rolling the 39-pound Mac Pro is much easier than picking it upand lugging it around.
But the purpose of these wheels isn’t theissue here.
What people really what to know is why theycost so much.
And that’s exactly what I’m going to explain.
I’m Greg with Apple Explained, and if youwant to help decide which topics I cover in future videos, make sure you’re subscribed,and voting polls like this one will show up in your mobile activity feed.
Now before we begin I want to formally announcethat I have created a gaming channel called GregGames.
I just posted a Super Mario Maker gameplaythat left me a little frustrated, and you’ll see why.
I’ll post a link to that in the descriptionfor you to watch after this video.
Alright so why exactly is Apple selling $700Mac Pro wheels? Well, there are three reasons I’m goingto cover, starting with what I call Apple’s Accessory Tax.
If you own an iPhone and stopped by the Applestore to buy a second charging cable and wall adapter, you’ve may’ve been surprisedby just how much Apple charges for those accessories.
You’d end up spending a total of $50.
Which may be surprising if you’re comingfrom an Android device, since companies like Google charge 30% less for those accessories.
But Apple’s markups are even higher on Macaccessories.
Take the Magic Keyboard for example, whichcosts $100.
A comparable PC equivalent like the MicrosoftBluetooth Keyboard is half the price, at just $50.
But there’s something else I want to pointout here. Because if you notice, Microsoft’s keyboardincludes a numeric pad, while Apple’s doesn’t.
And if you do want a numeric pad on your MagicKeyboard, it’s going to cost an extra $30.
And if you want that keyboard in Apple’ssleek space grey color, it’s going to cost another $20.
Bringing the total price of your new Spacegrey Magic Keyboard with numeric pad to $150.
Three times more than what Microsoft is offering.
And that disparity in price is the Apple AccessoryTax.
But how do they get away with charging somuch more? Surely Mac users would simply buy Bluetoothkeyboards from other companies in order to avoid paying Apple’s premium price, right? Well, that isn’t what happens in most cases.
Because the reality is that Apple has a monopolyon Apple products.
Which means, a customer buying Apple’s MacMini who loves the way the product is designed, is much more likely to pay Apple’s accessorytax in order to have a keyboard and mouse that matches the industry-leading industrialdesign of their Mac.
But it’s also important to understand theconvenience factor.
If you’re at the Apple Store buying a MacMini and need a keyboard to go with it, it’s much easier to simply buy whatever is availableat that store.
Rather than making a separate trip to BestBuy or a microsoft store in order to try and save some money.
But I admit that comparing $700 Mac Pro wheelsto Bluetooth keyboards isn’t really a fair comparison.
Mainly because there are hundreds of companieswho make Bluetooth keyboards, and customers can pick whichever one they want regardlessof what computer they’re using.
But if you own a Mac Pro, and you want itto have wheels, you have only one option.
Which brings us to the second reason why Apple’scharging $700 for wheels. And that’s simply because, customers haveno other option.
When you go to McDonald’s and ask for extrabarbecue sauce with your McNuggets, you’re forced to pay thirty-five cents per packet,because you can’t get that delicious sauce anywhere else.
And that’s exactly the problem Mac Pro customersfind themselves in. If they want wheels, they have to pay whateverprice Apple names.
It’s as simple as that. We’ve actually seen this play out beforewith products like the one-thousand dollar Pro Display XDR stand.
Customers buying the $5,000 display were forcedto pay the inflated price for its stand, since Apple was the only company offering it.
But it’s important to consider where theoutrage over these high prices are coming from.
When it comes to the Pro Display XDR, mostcustomers buying it didn’t have a problem paying the extra $1,000 for a stand.
And the same can be said for the Mac Pro wheels. Because if you really think about it, thecheapest Mac Pro costs $6,000.
And if you want the best performance money can buy, a maxed out Mac Pro will run you $53,399. So suddenly an extra $400 or $700 for wheels doesn’t seem too concerning.
Also, many of Apple’s Mac Pro customers are businesses, who are even less price sensitive than everyday consumers.
Now that doesn’t negate the fact that Apple charges insane prices for their accessories, but it’s important when considering why they choose to price these products so high.
And consider this: If you’re Apple, you under stand that customers who don’t need Mac Pro wheels, won’t buy them.
No matter how cheap they are.
Even if these wheels were $100, you still wouldn’t have a reason to buy them if you don’t own a Mac Pro.
And by the same logic, if you do own a Mac Pro and want an easy way to move it around, you need to buy these wheels.
No matter how expensive they are.
And that’s exactly why Apple gets away withch argi ng $700 for Mac Pro wheels.
Customers who need it don’t have a choice,and if they’re spending thousands of dollars on a Mac Pro in the first place, they canprob ably afford it.
Now the last reason why Apple is charging so much for some wheels, has everything to do with marketing.
Historically, Apple has a reputation for charging quite a bit more for their products than other companies.
The original Macintosh was $2,500 in 1984.
Which is quite a bit more than the average$1,500 price of a personal computer at the time.
And that trend continued throughout Apple’s history.
Now some may consider this to be a bad thing.
After all, if a company is known for charging higher prices than their competition, customers would likely avoid that brand.
But Apple occupies a very unique space in the tech industry.
Their aren’t only known for being expensive,but also being incredibly well designed.
Their industrial design team is actually the most awarded design group in the world, and several Apple products haven proven to be so iconic that they’re displayed in museums.
Something that can’t be said for most tech companies today. And this premium image has proven to be ahuge asset to Apple.
Customers don’t view the company as an average smartphone or computer manufacturer like Nokia or Dell.
They see Apple as a luxury brand that sells some of the most expensive and desirable tech products on the market, and that image only helps Apple.
But consider what they’ve been doing for the past year.
The 2019 iPhone 11 was introduced with a $50 discount over its predecessor, the 2020 Mac Book Air received a $100 price drop, and the new$400 iPhone SE is one of the cheapest smartphones Apple has ever made.
And this can actually be dangerous for a company like Apple, since releasing low-cost products can damage their reputation as a luxury brand.
Take the clothing company Champion for example.
When I was a kid, they were one of the cheapest,lowest quality clothing brands out there.
But by partnering with expensive high-quality brands like Virgil Abloh and Supreme, they’ve managed to completely reposition them selvesin the clothing market from a bargain bin brand, to a luxury brand.
And it had everything to do with how much they were charging for their products.
Now that same philosophy can be applied to the tech industry.
But there’s one big difference.
Becoming a luxury tech brand has proven to be much more difficult.
And with Apple releasing so many low-cost products recently, their premium image is at stake.
That’s why it’s important for Apple tode fend their reputation as one of the most expensive tech companies in the world.
But how exactly do they accomplish that? Well, they did it by releasing ridiculouslyoverpriced products that only a few people would ever buy, or even need.
For example, the $700 Mac Pro wheels are on lya product Mac Pro owners would buy.
The same goes for their $1,000 stand.
There’s no point in buying it if you don’t already own a $5,000 Pro Display X D R. And remember the $10,000 gold Apple Watch Edition? That was the perfect opportunity for Apple to boost their luxurious image.
Not only does the $10,000 price tag raise the product’s perceived quality, but it also gets the attention of some of the mostin fluential figures in society today.
Drake, Be yonce, Kanye West, and Katy Perry,were all seen wearing Apple’s $10,000 smartwatch.
This level of promotion helps advertise the product and give it a ‘cool’ factor that other smartwatches don’t have.
Because keep in mind, the $10,000 Apple Watch was certainly ridiculous, but think of how many $350 models it helped sell.
And that’s exactly the strategy Apple has been successfully using over the years.
Positioning themselves as a luxury brand by selling a few extremely high-ticket items, and leveraging that premium image when offer in low-cost products.
Alright guys thanks for watching, don’t forget to like and subscribe, and I’ll see you in the next video.
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