Great analysis from Jeffrey Mincey on the differences between price and cost vs. value regarding the iPhone 7.
Value is a bit more difficult to understand and narrow down to a dollar amount, because too much of value is subjective. For some iPhone users, the value is tremendous because they run an entire business or career from their phones. For others, the iPhone is a convenience but doesn’t represent as much value.
There is one component of value which can be measured. Resale. Traditionally, used iPhones have tremendous resale value and whatever that amount is can be deducted from the price, which helps to reveal a lower cost of ownership. So, even though an iPhone sells for more, higher resale helps to bring that so-called cost down substantially.
Even at a higher price, iPhones hold their value which helps to reduce the overall cost.