OnDemand WTP Pricing Research

iPhone 6 vs. Android One – The Psychology Of Smartphone Pricing | AskMen

“IPhones are sold to people who care about brands,” explains Paul Barter, vice president of research for technology services firm T4G Limited. “They will always sell a higher-priced product and be successful selling phones, MP3 players, tablets, or watches because of people’s willingness to pay for connectedness and cool.”

The new iPhone 6 (unlocked) will sell for $649, but what you’re really paying for is simplicity. Most buyers will focus on how the new device makes them look and feel, which makes sense, since Apple markets mostly to the world’s richest 15%. And their phones are priced accordingly.

But as Barter points out, Apple customers just want the phone to deliver something others covet, whereas Android prices reflect an open-source strategy — cheap and customizable — which is another reason for the price gap. (In the Indian market, where Android One will attempt to take more share, prices are driven further down by competitors like Nokia, who’ve said they plan on selling discounted 3G and 4G phones to compete.)

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iPhone 6 vs. Android One: The Psychology Of Smartphone Pricing.

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