Why $19 is Apple’s preferred value for accessories

Unveiled in October after Apple showed off its new line of gadgets, the soft, light gray square is made of a “non-abrasive material” and embossed with Apple’s logo. During tests, the rag acted like other microfiber cloths that are listed for less than half that price so… why $19?

As it happens, Apple’s pricing strategy rarely allows accessories to fall below that threshold. The 6.3-inch swatch of clothes sits next to 17 other Apple-branded items on the company’s website—a combination of charging cables, dongles, and adapters—each costing $19. Some, like wired earbuds and a charging adapter, were once included with the new iPhones.

They’re part of the company’s growing wearables, home and accessories category, along with $19 Apple items—Apple Watch, AirPods and other small gadgets—that had revenue of more than $8 billion in the quarter ended October.

While Apple declined to comment on its pricing structure, tech industry analysts say there are a few reasons the company might settle on that number.

Nineteen, he says, is neither too much nor too little to turn off the company’s target customers. When you’re buying a big-ticket item like the iPhone 13 ($799) or MacBook Pro ($1,999), that $19 add-on effectively disappears into your shopping cart. And yet, analysts say, the price is high enough that you’re buying a better product—even if it’s not.

Not too much

Almost every Apple product price ends in a number: 9. This is a comprehensive retail strategy known as “attraction pricing,” designed to generate a sense of good value and rooted in decades of behavioral research.

Analysts say $19 is also a good place for affluent consumers willing to pay extra for basic tech products and services. “When you go down to $20, those people don’t think twice about it, even if [the item] “Can be competitively priced at $1,” said Gene Munster, managing partner at venture-capital firm Loop Ventures.

The cost is also low enough which is an aspirational purchase for buyers who look for products that make them feel special.

“Apple wants to make sure their consumers feel consistently good,” said Abir Syed, partner at Upcounting, an e-commerce consulting firm. Even though shoppers can’t seem to find a good deal, he said, “they just feel fancy.”

not too little

But there’s a catch. Selling cables, adapters, and polishing cloths for under $20 may fall into “cheap” territory. Much of Apple’s success is based on the status of its products as an attainable luxury, something that costs a little more but is reasonably worth it.

“At $19, you get attractive pricing benefits, but also give an indication that this is a premium product,” said Mr. Syed.

Much of this price depends on where buyers are making their purchases. If you’re on Apple’s website or in an Apple Store, you’re not bargaining like you would if you were shopping for a specific item on Amazon or Walmart.

“Most people would say $20 for a dust cloth on Amazon is absurd,” Mr. Syed said. “At Apple, there’s a little less to be compared to.”

Experts say that in the case of Apple’s polishing cloth, selling it for $19 makes it worth more than $9. The $19 clothing became an internet meme shortly after it was introduced by Apple, which may help explain its difficult situation. And you probably won’t be paying less for it anytime soon.

Mr Munster said the clothing incident demonstrated Apple’s power in the market. “Not every brand can get away with it,” he said.