Why is a Mac computer much more expensive than a PC?

The first Mac computer was introduced in 1984 by Steve Jobs, and it was the first commercial successful personal computer that features the mouse and the graphical use interface. Apple used the vertical integrated production model that the company facilitates all its hardware of operating system creation. Although it had trials and errors in the next decades, Mac computers have been leading the computer industry revolutions toward better user experience.

On the current market, you could buy a PC for $300 but cannot get a Mac computer for less than $1000. Tom’s Hardware[1] did an experiment to build a PC that matches the specs of a base model Mac Pro and found the price difference to be less than $6. Although there are many differences between Mac and PC, analysis[2] show the price difference has little to do with production costs but the options and consumer perceptions. First, Macs are loaded with premium programs which don’t give the consumer an option to strip down any unwanted software to save on price like PC allows. Second, the Mac’s design is trendy and stylish, and was perceived as the first choice for artists, musicians and designers. Third, Apple is known for its outstanding customer service that the overall customer satisfactory rating for Mac is higher than PC brands. Finally, Apple’s advertising tends to portray Mac users as young, creative trend-setters, whereas PC brands tend to advertise on competitive pricing and flexibility of options.

Apple targeted a group of consumers that are less price-sensitive and perceive high values on overall user experience, design and being recognized as “trendy”. This group of consumers would value Mac computers higher over PC brands, which allows Apple to charge a much higher price. As the personal computer industry’s trend leader, Apple also uses a “price skimming” strategy. Price skimming refers to a company setting price high during the introductory phase, then lowering the price as competitors’ products catch up. For example, MacBook Air was introduced more than a decade prior other PC brands followed suit, and at the time it was priced higher (in real dollar) than it is now. Although Apple wasn’t aiming its products to have exclusivity status, an interesting side effect of pricing its products much higher than PC was that Macs get less viruses. The reason being virus developers want to infect as many computers as possible, and there are simply fewer Macs in the world.

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[1] The Apple Mac Cost Misconception. By Tuan An Nguyen. 2008. https://www.tomshardware.com/reviews/apple-mac-leopard-windows-vista,1985-2.html

[2] Are Macs more expensive than comparable PCs? By Caitlin Uttley. https://computer.howstuffworks.com/macs/macs-more-expensive2.htm