And that's the problem personified. 15% is STILL 15% more. It may seem more palatable but it's still going to cost 15% more and that makes for more debt no matter how long you take to pay it off.
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iPhone XS If Apple raises prices by 15% to offset tariffs would you keep buying the iPhone?
- Thread starter Renho
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Yes, true. For me its not about paying an extra $5 a month. Its them picking margins instead of the customer and in the meantime not offering the BEST phone on the market for that price to reflect... Example, They should have already had a 4,000mAh battery in them, had 3 lenses cam, had fast charging in box, had 90hz refresh rate. and now they will make it more without having most of those features....ugh..
[doublepost=1558050438][/doublepost]This is pretty interesting......COuld be one of the biggest decisions for Apples future coming Sept.
https://seekingalpha.com/article/4264746-apple-2019-iphone-problem
They should just let the kids scream I say lol. But seriously I have no idea how families of 4 or more keep up with tech if everyone gets a new phone every year or 2 even. I'd much prefer eating and having a nice home myself. Thankfully my kids are grown, they can buy their own toys now.
Very few people actually buy a phone outright though in the grand scheme. Personally if I had £1k in cash and wasn’t paying off a contract, I’d likely not want to drop it all on a mobile phone. It looks even more obscene when it’s a lump sum like that and it’s the reason contracts are so popular.
Pay now, pay later. You're still paying.
Yup. And that’s the mindset of the consumer today, because everything is subsidized or broken into payments, therefore they justify it by being, ‘Oh, it’s cheaper if I make monthly payments, even if there is an added cost’. You’re still paying for it over the lifetime of the phone, device, house, car, ect, and that’s what financial institutions/phone companies want the consumer to think.
I always buy my iPhone's up front at full price.
The XS Max is the last time I will do this. The price is now getting crazy high.
I will most probably start skipping generations or pay monthly if need be. One thing I know, I'll be sticking with the XS Max for at least another year or two!
The XS Max is the last time I will do this. The price is now getting crazy high.
I will most probably start skipping generations or pay monthly if need be. One thing I know, I'll be sticking with the XS Max for at least another year or two!
Car dealerships love you.
“We can offer you these new rims for $20/month”
“Omg no way!!! $20 is NOTHING BRO sign me up!
84 months later $1680 for rims that cost $500.
Apple should absolutely pass on the full cost. It would not be sensible to eat the cost and hurt margins. Costs always factor into the final retail price.
[doublepost=1558097744][/doublepost]
Margins have not increased by any meaningful amount. Yes premium flagships now cost more, but they also cost more to make. Of course Apple makes a bit more money when they are making ~40% margin on a more expensive model, but that doesn't mean they should absorb genuine costs.
[doublepost=1558097744][/doublepost]
Margins have not increased by any meaningful amount. Yes premium flagships now cost more, but they also cost more to make. Of course Apple makes a bit more money when they are making ~40% margin on a more expensive model, but that doesn't mean they should absorb genuine costs.
I'm not sure what your definition of "very few people" is or it may just be your location but most people I know around me have paid off their phones. Guess there are people out there that still believe "if you have to finance it you can't afford it."
Those are the sorts of people who also think people who mortgage their house can’t afford it so I wouldn’t take notice of morons. In all seriousness though I doubt people think those who opt for contracts can’t afford the phone outright, it’s simply preference over how the device is paid for. As I said personally I probably wouldn’t buy a latest iPhone if I was parting with a lump sum, whereas a monthly tariff is much more palatable and inline with most monthly utility bills.
Most do it via contracts, buying 1k phones outright aren’t the norm. Certainly when more only upgrade every two years when their contracts end.
Yes it does mean they should absorb. Making 10% less in the billions is still making Billions. It won’t hurt them in anyway, meaning they can still acquire any company they want, they can still be on the Fortune 500 list. They can still do whatever they want and wont have that decline in sales. Cause if this does happen they will lose sales already on top of them losing sales in a plateauing market. Maybe in 2014/15 they could get away with it.
Reduced margins will hurt investors and the share price, it will hurt employees with stock, and it will hurt those who are rewarded bonuses based on the performance of stock. Apple will not be going down that road.
They will have a huge decision. Cause I bet if you pass on that cost, things will get worse than if you don’t pass it on, in a market where sales have lightened world wide. If you pass on costs to an already most expensive phone out there and ur not even getting the best. Good things aren’t going to happen.
*takes out calculator*
That would increase the base price of the XI to about $1,150. Would be very steep, but I’m already paying a lot. The OnePlus 7 Pro looks cool though.
That would increase the base price of the XI to about $1,150. Would be very steep, but I’m already paying a lot. The OnePlus 7 Pro looks cool though.
Phone Junky, I agree, but can’t help but wonder how many people get a new phone, make a few payments and suddenly stop paying. To me paying payments for a phone is in line with buying food on credit. I can see in a pinch paying for food, but just don’t understand the logic doing that just to get a phone for ones family.
There are plenty of people like myself with good jobs, home owners with two car families who have a simple phone contract. Is it some kind of stigma outside of Europe or something? Paying £30 a month for the use of a phone and plan is hardly a sign someone is living beyond their means.
How they really get you, is if you pay monthly and then turn it in after a year to upgrade or 18 months. You basically rented it for half price. Imagine them doing that 3 times in one phone life. They just made an extra $500 or so off of one device. Why they really want you to trade it in. I use to upgrade every year but I would always sell it on Craigslist for cash. No listing or shipping fees. I try to get every cent I can out of things...
If I take out a contract then I keep the phone for as long as the contract and then give the phone to a relative. People who are gullible enough to waste money buying themselves out of a contract early because they ‘need’ a shiny now phone deserve to be ripped off if say. I’ve never owned a phone that I didn’t think was good enough for 2 years of use and would get very bored upgrading annually.