Best Buy Price Gouging/ Price Match on iPhone

[gadgetfreaky]

I was just commenting on what is allowed and what Apple allows. Apple allows sale. They don't allow consistently selling their products as a loss leader. There's a difference there but I'm not contending it's notnmarket manipulation. The strongest manipulation Apple pulls is not selling their product to their retailer at much lower than msrp.

Let's think about this for a minute though. Best Buy is selling gen one stainless Apple watches for less than half of msrp. If Apple was as cut throats about this as you seem to be implying they'd get "banned". Telcos are also offering free devices with a two year agreement. The average consumer has gone longer thinking their iPhone costs them $200 (or less) because that is what they are actively paying for the device.

honestly my view on it is Apple is testing scarcity. FOlks who placed their pre order for JB on launch day still dont even have PFS.

Why does Best Buy get new stock every day? Jet Black and the Best Buy price seems like an experiment in what folks will pay for a scarce item. Next year- I'd be prepared for a luxury version maybe ceramic that's priced well above the normal phone.

 

[JulesJam]

market manipulation.

Advertising is market manipulation. Offering a free gift with purchase is market manipulation.

Market "manipulation" is not a term that has any specific meaning within anti-trust laws or in economics. Virtually any agreement a manufacturer enters into with a reseller could be labeled "market manipulation." It is a term so broad and undefined that it is meaningless.

Price fixing and MSRP on the other hand are terms with specific meanings that have been well defined within both the law and economics and extensively litigated. The former is illegal, the latter is not.

 

[lordofthereef]

honestly my view on it is Apple is testing scarcity. FOlks who placed their pre order for JB on launch day still dont even have PFS.

Why does Best Buy get new stock every day? Jet Black and the Best Buy price seems like an experiment in what folks will pay for a scarce item. Next year- I'd be prepared for a luxury version maybe ceramic that's priced well above the normal phone.

I don't think we really disagree on much here lol. I was just responding to a poster about prices of Apple products and why Best Buy is allowed to raise prices and nobody cares (except the consumer). That said Best Buy has been pricing iPhones like this for years. The extra $100 didn't start with this device. And likely won't end with it. The number is there, IMO, to make sure they aren't selling at a loss. Msrp is at loss, essentially.

The conspiracy theorist in me thinks Apple is cooking the numbers (which they are no longer even reporting). This phone release was unimpressive and I don't think Apple expected to best any records (and I still don't though the Samsung issues may help them greatly here). They're reasoning for not reporting numbers at and around launch scarcity... I don't believe for a second that Apple just now concluded, after ten years, that their sales numbers aren't representative of consumer demand. I just don't think they expect consumer demand to beat previous demands as has always been the case prior.

Again. That's my inner conspiracy theorist. A lot of it has to do with the iPhone 7 being last year's iPhone with some black lipstick on. Of course, opinions will differ.

 

[gadgetfreaky]

Advertising is market manipulation. Offering a free gift with purchase is market manipulation.

Market "manipulation" is not a term that has any specific meaning within anti-trust laws or in economics. Virtually any agreement a manufacturer enters into with a reseller could be labeled "market manipulation." It is a term so broad and undefined that it is meaningless.

Price fixing and MSRP on the other hand are terms with specific meanings that have been well defined within both the law and economics and extensively litigated. The former is illegal, the latter is not.

Nobody said any of that- People were making the point retailers are free to set the price at any level they want. I said Apple has agreements to stop that.

And again- You keep taking partial quotes then arguing points I didn't make.
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I don't think we really disagree on much here lol. I was just responding to a poster about prices of Apple products and why Best Buy is allowed to raise prices and nobody cares (except the consumer). That said Best Buy has been pricing iPhones like this for years. The extra $100 didn't start with this device. And likely won't end with it. The number is there, IMO, to make sure they aren't selling at a loss. Msrp is at loss, essentially.

The conspiracy theorist in me thinks Apple is cooking the numbers (which they are no longer even reporting). This phone release was unimpressive and I don't think Apple expected to best any records (and I still don't though the Samsung issues may help them greatly here). They're reasoning for not reporting numbers at and around launch scarcity... I don't believe for a second that Apple just now concluded, after ten years, that their sales numbers aren't representative of consumer demand. I just don't think they expect consumer demand to beat previous demands as has always been the case prior.

Again. That's my inner conspiracy theorist. A lot of it has to do with the iPhone 7 being last year's iPhone with some black lipstick on. Of course, opinions will differ.

On cooking the numbers. There are very few pluses of any color even 1 month post launch. I can't recall things being this scarce this far out in a while in an apple launch.

I do think the heavy carrier promotion has helped clear stock. I'd actually bet their numbers are at least as good last year which is better than expectations.

 

[lordofthereef]

I do think the heavy carrier promotion has helped clear stock. I'd actually bet their numbers are at least as good last year which is better than expectations.

Perhaps the numbers are as good. We will never officially know. It's telling that some products weren't even available for launch day. This includes the Apple Watch I ordered. It wasn't even fancy; black aluminum lol.

But anyway, if Apple expected the numbers to be as good or better than last year it is a strange move to not want to report them. They're masters at PR spin for sure. After all. We are here talking about it haha!

 

[gadgetfreaky]

Perhaps the numbers are as good. We will never officially know. It's telling that some products weren't even available for launch day. This includes the Apple Watch I ordered. It wasn't even fancy; black aluminum lol.

But anyway, if Apple expected the numbers to be as good or better than last year it is a strange move to not want to report them. They're masters at PR spin for sure. After all. We are here talking about it haha!

Perhaps not a apples: apples comparison. (no pun intendeD). i.e. differnet market launch schedule and availability. we know their margin mix is higher wiht more pluses- it's just a question of sales volume overall. The phone is a lot better than I expected and I was skeptical after their presentation.
I'm betting it's solid #s.
We'll know in about 2.5 weeks

 

[lordofthereef]

Perhaps not a apples: apples comparison. (no pun intendeD). i.e. differnet market launch schedule and availability. we know their margin mix is higher wiht more pluses- it's just a question of sales volume overall. The phone is a lot better than I expected and I was skeptical after their presentation.
I'm betting it's solid #s.
We'll know in about 2.5 weeks

Like I said, opinions will differ. I've never been this disappointed by a launch product. I pretty much hated the 6 but that was only after using it and realizing the lagging and reloads wasn't a software thing; it was just underpowered.

Anyway, Apple been doing this a decade. And just now their release schedule was different? I don't believe that for a second. It will be interesting to see if they give us numbers. They said they won't. /shrug

 

[gadgetfreaky]

Like I said, opinions will differ. I've never been this disappointed by a launch product. I pretty much hated the 6 but that was only after using it and realizing the lagging and reloads wasn't a software thing; it was just underpowered.

Anyway, Apple been doing this a decade. And just now their release schedule was different? I don't believe that for a second. It will be interesting to see if they give us numbers. They said they won't. /shrug

i get it- i thought their apple event describing it was super disappointing. as a result my expectations were exceedingly low

 

[12vElectronics]

On the contrary. Price fixing isn't allowed. This is how stores are able to have sales and, frankly, compete with one another.
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They get their phones for about $50 off the top. That basically covers shelf space.

I just figured certain brands and products have a set price they want all retailers to sell for. Guess not!

 

[JulesJam]

On cooking the numbers. There are very few pluses of any color even 1 month post launch. I can't recall things being this scarce this far out in a while in an apple launch.

I do think the heavy carrier promotion has helped clear stock. I'd actually bet their numbers are at least as good last year which is better than expectations.

The scarcity of the plus models is a combination of the Note7 problems and the heavy carrier subsidies via the inflated TIVs.
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And again- You keep taking partial quotes then arguing points I didn't make.

I am not taking your quotes out of context so stop implying that. I am addressing specific points you are making and in order to make it less confusing, not quoting the entirety of your posts. I am addressing your points accurately, but rather than admit that, you say I am not quoting you in full.

 

[bibigon]

Nobody said any of that- People were making the point retailers are free to set the price at any level they want. I said Apple has agreements to stop that.

Can you cite to someone reporting one of these agreements? I'm confused why Apple would do that, so I'd like to see some evidence that they do.