Here’s Why Apple Products Are Sold Cheaper on Amazon

It’s business, not charity

An Image by the Author

Every time I’m keen on buying a new Apple product, I do a quick Google search to see where I can find the best deal. And each time I’m amazed to see how cheap those products are on Amazon, compared to their actual cost on Apple’s official website.

The price difference is huge and irresistible. It often pushes me to buy it from Amazon than from my dear Apple, whom I have been loyal to for a decade and a half.

I’m sure I’m not the only one guilty here. There definitely must be millions of other fellow fanboys who pick Amazon over Apple. So, isn’t it bothering Apple?

I’m sure it does. But I’m also sure that Apple has this into consideration, maybe which is why it’s okay with its products being sold cheaper on Amazon.

Now to understand why is it so, let’s emphasise the two main questions:

1. Why Does Apple Allow Amazon to Sell its Products for Cheaper Rates?

Despite its extensive reach worldwide, Apple has only 520 retail stores on Earth. The company is constantly trying to expand this number, but it’s a slow process. Take the two new Apple stores in India as an example.

Apple products have a massive fan following in India, thanks to the 1.3 billion population figure. Despite this, it took Apple an eternity to set up its official stores in a country where it has one of its largest user bases.

There are many more such countries that Apple hasn’t officially entered. Forget Apple retail stores, some countries don’t even have the online Apple Store facility.

Therefore, with such less availability of stores, Apple has no choice but to spread its reach through third-party retailers such as Walmart, Best Buy, and Amazon.

Now, in order to encourage these third-party retailers to sell their devices, Apple has to give something in return. This can be a whopping 15–20% wholesale discount.

But there’s a huge difference in the shopping experience when it comes to purchasing Apple products directly from Apple and purchasing them from third-party retailers.