Why Apple Products Are Cheaper On Amazon

If you’ve shopped for Apple products online then you may’ve noticed that they’re actually cheaper on Amazon, despite being brand new. So why would Apple allow this?

Well it’s has to do with the way manufacturers incentivize third party retailers to sell their products. Companies like Apple have some stores of their own, but they want other retailers like Best Buy, Walmart, and Amazon to sell their products too. That way they can extend their reach to more customers, rather than only those who visit one of Apple’s retail stores.

[abncybernex]

Another thing that wasn’t brought it is that for retail stores like Best Buy. Apple gives them a certain amount of money to just have a section of the store that is just exclusively for Apple. So if you ever walk into a Best Buy and see an Apple section. Odds are Apple is paying them just for having a section there.

[BGwControlStop]

Another Method in Australia that allows certain big Retailers to discount certain products particularly standard configuration MacBooks Laptops and Mac Desktop and airpods, is that Apple will provide rebate bonuses for these retailers if they can meet a certain sales targets. Thats why some retailers periodically discount these lines by 10% every 2-3 months. The rebate allows the retailer to "make a profit" despite making a loss on each unit.

[LChiuy]

Used to work at a tech retail store and let me tell you... all Macbook or even apple products we sold in general we sold was at a loss even at full price. Exactly what this video said... we're supposed to upsell accessories to make up the difference.

[wapon]

To me buying Apple products at Best Buy is the way to do it. I recently was able to get a base model M1 Pro 16 inch MacBook Pro for $1700 open box ($800 off MSRP) and I traded in my old 2019 15 inch MacBook Pro for $600. So only $1300 out of pocket after tax on a $2500 computer. Them having the discount, still stocking older models and selling at a discount that way, open box to make it cheaper, offering the trade in service, and having a good return policy, it’s hard to beat that!

[haithamhamada]

In countries that dont have an official apple stores it's the other way around prices are crazy high on Amazon than the unauthorized retail shops

[darthmortem]

no nonsense, short and concise video. you love to see it these days

[dgoenka]

This is not just Apple, not just tech, but a very general scenario. Another benefit, subtly mentioned but not very apparent in your video, is that retail volumes are generally a fraction of wholesale volumes for most manufacturers.

This fact, combined with the fact that profit per device is higher in direct sales, is where companies try to strike a balance. This is often done by giving exclusive pricing to wholesalers which they hope will trickle down while also giving benefits to consumers to incentivise direct purchase. Another space this is very apparent in - airline tickets.

[LaMerleNoir]

Additionally Warranties are from the date of original sale. If Amazon bought your MacBook or iPhone 6 months ago then the warranty you get is 6 months shorter than you think. Found this out when my first iPad died and apparently it had sat at Verizon for a year before I got it so it was out of warranty before I even got it.

[jayyyanth]

Literally got my M2 Macbook Air today (the same one as shown in the video) and you uploaded the answer for the thing I was so confused on 😂

[Zveebo]

If I need to configure, I buy from Amazon. If I don’t, I buy from Amazon or John Lewis (a big department store in the UK). It’s nice to have options!

[MidwestShark]

Love your channel. I was honestly in a bit of a bummer mood prior to watching this video. Your simplicity, straightforward information, and calm audio and easily digestible video, really lifted my mood just enough to get ready for work. So, thank you. 6B people & I appreciate you.

[GoombruhGG]

i was actually wondering this, thanks

[shayanaliakbari]

Thanks for the explanation, can i ask is there any difference between waranties if we buy from Amazon rather than Apple itself?

[Thewaterspirit]

Yet the one issue with Amazon, is sometimes even with iPads and MacBooks, they don’t always have them in stock despite the fact you can order one from apple with no hassle, nor is there any sign they have no stock.
So that 256GB iPad you were saving for on Amazon, is suddenly gone for a while, which sucks because it’s cheaper and your old iPad broke last week.

[bagette]

So refreshing to get a clear answer in the first 30 seconds of video!

[BobbySimpson]

Thanks for the insight. What music did you use for the background? Need that on my chill instrumental Playlist asap.

[IntriguedLioness]

Thank you for this video. I already understood this, but this way, I can forward this video to everyone who doesn’t believe me. They are convinced that Amazon is dealing with shady third-party dealers, and these are refurbished. Once you understand marketing, you can also become a better, savvy buyer!

[clintgolub]

One thing that was missed in this video is just how much of an motivator Apple Card really is to purchase direct from Apple. 3% cash back on a high-end machine configured with top tier specs can definitely be sizable.

[mr._vico]

0:16 The old Mac OS X Lion background is so nostalgic🥹

[proatmope]

My parents got me AirPods for Christmas 2019 and they got it from Amazon for $120 instead of $160. Yeah I know I'm 3 years late for the first generation AirPods but to this day they still work amazing.