Fact: As the United States' first-ever trillion dollar company, Apple currently holds a market cap higher than the GDP of Switzerland. The high price of its products married to the millions of Apple loyalists around the world make up this tech giant's hefty value. That said, what exactly makes a single Apple product so expensive? According to Marketing Professor Mohan Sawhney, it has little to do with quality and specs, but more so with brand loyalty, a.k.a. your willingness to buy the latest iPhone release over and over again, even if they take away the headphone jack.
This loyalty from the brand's millions of customers worlwide then translates into a premium called the Apple Tax, explained to be the additional value they charge knowing that buyers will be willing to buy their products regardless of the cost simply because it's branded Apple. Think of it as something similar to luxury brands where customers have no qualms about shelling out more money considering that the logo is an established status symbol. "These products become an extension of our personality, how we value elegance, design—that's what inspires a lot of loyalty and allows Apple to extract a premium for their products," Professor Mohan tells Business Insider.
However, is the status symbol alone all worth it? Watch the full video below to find out.