Simple. Apple is clever and greedy. They have massive reserves of cash, all from obscene markups and not just on iPhone. While I disagree with their questionable practices, Apple is the master of generating profit.
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Apple Takes 48% of Mobile Market Profit
- Thread starter MacJones
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Why do you think customers are prepared to pay Apples "obscene markup" but not prepared to do that for other brands?
C.
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lol at "questionable practices." they charge what the market will bear, same as their competitors. It's just that the market will bear more for apple than for others.
wirelessmacuser said:
lol at "questionable practices." they charge what the market will bear, same as their competitors. It's just that the market will bear more for apple than for others.
Largely because one has no choice if you want the product. Again I refer back to giving them credit for their skill in fleecing customers. Don't get me wrong. I'm not an Apple hater, I just paid nearly twice as much for a fully loaded MacBook Pro, as i did for my other new laptop of identical configuration. And it is a ThinkPad, not exactly a cheap low end brand x model. I just call it like it is.
Need more proof? Do some research. Apples been and continues to be looked at by the DOJ, and other agencies. Check out the CEO's scams regarding his sales of stock... It goes on & on. It's just that he's got massive influence which (thus far) has kept him (and Apple) from paying the consequences. When you're the darling of Hollywood and other institutions of similar practices, you get away with some amazing stunts.
So by 'most Smartphones', you actually meant top of the range Smartphones. In that case, and in the US, yes. Believe me, there's a lot more cheaper Smartphones; I've had Smartphones for years and years - I'm sure you have too.
Just curious - Why are they being looked at by the DOJ? I thought companies could price their products however they choose/market allows. Or is it a different reason?
So why did you do that? You obviously had a choice? Wouldn't it be more accurate to say that you fleeced yourself?
Another way of describing this is that Apple is just better at adding value.
C.
It's not overpriced if people will pay for it. That said, who cares who is making the most profit seeing as they are all for profit companies. Selling the most phones (Droid) or making the most profit (Apple) doesn't determine which phone is best. Buy what's best for you (i.e. these arguments are pointless and most of the people posting are just trolling).
I paid a price I could easily afford. It's your choice to be informed or live in denial.
Added value is a fantasy. I already stated that I give them credit for their devious and successful (if judged purely on profit) ways.
Do the math.
Take the BB torch, or Captivated both with out contract is $500 and with a contract work out to be around 200. so it is a $300 subsided cost.
Now lets look at the iPhone with out a contract is $600 or $700 and with a contact it is $200 so the subsided cost is $400. That I do have an issue with and I would like to see the other phones getting the same type of discounts. Verizon, Tmobile and others give a much better discount on the phones and more in line with what the iPhone gets but AT&T will not do it.
It's not a discount. It's a subsidy.
It's not free money. They carrier wants that money paid back in full with interest over the period of the contract. The carriers like iPhone because the contracts are more expensive. Plus, it brings in new customers.
Do actually think that a carrier would give Apple free money?
In the the UK, where the iPhone is not exclusive to any Carrier. The subsidies are practically identical.
C.
I agree with that.
For instance, add 16G of storage for $100.
Questionable practices? I think as their stranglehold on certain sectors and greed grows and start really kicking in, I thnk we'll see more and more reports similar to what MS did.
In an open competitive market. Prices are effectively set *by* the market.
It's not Apple's fault that people are willing to spend $600 on a phone. It's their free choice. Apple has to choose a price that fits the market conditions.
What Apple are responsible for is creating products so desirable that customers are falling over themselves to pay $600 for a phone.
C.
Do you see the failure in your agrument....... Please look carefully.
I choose 2 other smart phones that carry the exact same contract requirements as the iPhone...... The users of those phones tend to get the same contacts.....
I want the iPhone off of AT&T for selfish reasons. That is I would like to see the non-iPhone on AT&T get a more even subsidy compared to other phones.
Don't forget that a lot of those phones require a mail in rebate, so you're paying more off the bat. The iPhone has a clear cut contract price with no rebate.
I would agree that carrier exclusivity and network locking are not in the best interest of the market.
Like I say, iPhone has lost its exclusive deal with O2 in the UK and is available on all 5 networks. There's some real competition here. By switching, I have a cheaper monthly deal, more data and free tethering.
But I think the relative size of the subsidy has not changed at all. If anything its more.
C.
Very astute observation. Once the at&t agreement ends, carries could enter a "subsidizing war" to carry the phone if it is offered on perhaps 4 US carriers?
If at&t, T-Mobile, Verizon, and Sprint all could have the iPhone they might compete for it. Apple's production will really be ramped up by the end of the year.
You are looking at the wrong places. For example, check Amazon:
Samsung Captivate: $49.99
Motorola Droid 2: $99.99
...
How is the the iphone overpriced?!?!?!
Both the iphone and Droid phones are $200 and $500-600 retail.
I guess that makes them fanboys
I guess these prices kill the above argument that Apple is getting all of the deals.