To be fair - if EVERYONE followed Apple's model - the cell market wouldn't succeed because it would be leaving many people without the ability to own a phone.
You can't have every company making ONE phone and have it be high end. And priced as such.
Further - the one thing some people (not saying you) fails to really accept is that the iPhone would not exist had it not been for other manufacturers spending YEARS of R&D, $$, and creating varieties of phones. Nor the carriers who also helped "groom" customers into increased costs and services. Without everything that came before - Apple wouldn't have been successful.
Whoah, hang on there. This isn't about Apple's model, that's the whole point!
My objection was to Darling's comment that royalties/licenses are designed so that the more valuable product subsidizes the cheaper product. He brought up margins. He stated that a 100-dollar phone with a 4-dollar margin couldn't pay the kind of royalty that a 650-dollar phone with a 200-dollar margin
could, and presumably
should.
The royalty/license shouldn't be tied to the value of the whole product, because the products are
not comparable and some businesses have different business models than other businesses. It should be tied to the common part that gives each product the specific function that is under patent.
I am wondering if this is not like music or some other sphere where royalties are applied? Would you or Darling suggest that a person using a Bose Digital Radio should pay more for his music or the ability to stream it than a person who listens to a cheap crappy radio? Why not, he is obviously getting more "value" out of the experience and he can afford it, right? No, the royalty is part of the cost of the "song", not the equipment it is experienced through. Likewise, the patent in question is part of the radio component made by Qualcomm or whomever, nothing to do with the device it's going into.
Not only was it suggested that Apple should subsidize others (
because they can afford to), you are now suggesting that Apple should prop up the whole industry, and they owe it to everyone, because it turned out, to everyone's chagrin, that, yes, they were indeed the computer guys who could just walk into the business and turn it on its ear.... and, sure, it was all down to the little part from Qualcomm, yeah
Sorry, but the reason that ATT (the only ones BTW) took a chance on the iPhone was because of Apple's years of success with the iPod, and Apple obviously had something to show ATT and propose to them that was unique. Let's turn your statement around... "many people fail to accept that the only reason that the Samsung Galaxy even exists today is because of the years of R&D and effort spent by Apple."
The only reason I pay "an increased fee" is because I know Apple stands behind their products and services with proven track records and satisfaction rates.
That is why people are willing to pay a premium for the iPhone. I don't give a monkey's for the phone company's service; I get unlocked phones and shop around for services.