I'm not saying that Apple doesn't price their products high but I think the fact that no cheaper reputable tablet with similar specs has appeared is pretty telling.
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iPad Snags 75% of Tablet Market in 4Q 2010 as Android Gains Momentum
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I'm not saying that Apple doesn't price their products high but I think the fact that no cheaper reputable tablet with similar specs has appeared is pretty telling.
If you didn't care about what works for manufacturers, free would be best for consumers. But then almost nobody would invest in making this stuff.
Apple can't overprice anything in a free market. Most everybody is perfectly free to buy a netbook and install linux (or some such) for a lot less, if that floats their boat. People aren't screwed if they buy a product that they think is worth more than this to them personally. It's hard for me to call the little-old-ladies and grumpy businessmen I see carrying iPads fanboys.
Why Android will fail
Android will fail (at least for the next couple years) because many of the people who buy Android devices, buy them because don't want to pay for apps, and most of the apps currently in the Android store are free apps.
This will perpetuate a vicious circle.
The good professional developers will continue to migrate towards iOS after looking at the comparative revenue stats, and customers who spend money for those types of apps wil stick with, or move back to iOS devices.
I forget who said: for success "follow the money".
Android will fail (at least for the next couple years) because many of the people who buy Android devices, buy them because don't want to pay for apps, and most of the apps currently in the Android store are free apps.
This will perpetuate a vicious circle.
The good professional developers will continue to migrate towards iOS after looking at the comparative revenue stats, and customers who spend money for those types of apps wil stick with, or move back to iOS devices.
I forget who said: for success "follow the money".
On this forum, if it were Apple, and not Samsung, that tried to mislead with its sales figures, the headline would read "Apple caught lying about sales". I mean, come on, Samsung has sold so FEW of its tablets that it didn't even want to admit how few to its investors, and tried to cover up its poor sales by stating the number of devices that were in sales channels, not the number sold. If Apple acted like Samsung, there would be an uproar!
Umm Revo (makers of angry birds) already said they are making more money off there Android one than the one for the iPhone.....
Figure that might put damage in your pointless bashing.
Granted; but when comparing to Android, we can safely say Apple is selling as many iPads (and iPhones) as they are making; whereas it looks like Samsung may be sitting on a backlog that isnt really moving.
You clearly do not understand then.
There is making good profit margin then making an insane profit margin. In Apple case it normally falls in the insane side. WHen it is on the insane side I call that screwing over the customer.
Good profit margins I would say for apple is 10 -15% Apple from what I can gather is making something like 50+% profit margins. Since those amount stack with each person in the chain Apple 50% profit margins means the consumer side gets really screwed since the middle men are going to stack on their fees.
No customers are getting screwed over. In the U.S. we figured out long ago that the proper price of something is determined by supply and demand, and demand is determined by utility.
You are making the assumption that price should depend on cost; that's not how capitalism works.
The point being that no one is forced to buy any of this stuff. People buy it because it gives them real or psychic value that at least equals each other option for spending that cash.
How in the world is Apple screwing over their customers? Can some one please explain this. If Apple products are too expensive for some, then don't buy it. No one is forcing anyone to buy Apple products. Everyone has a choice they can make. If Apple is too expensive for your taste, then buy a blackberry or Android based phone.
Why the hell do you care how much I or anyone else pays for any product. Since when did y'all become the pricing police. Some of you are so sanctimonious in your arguments, as if you are Nobel Peace Prize winners in Economics. Elementary economics teaches about supply and demand. Obviously there is a demand for Apple products. I for one will pay a premium for a great product. That's my business. I don't need any of you telling me how Apple ripped me off, as if you care about me and my finances.
Why the hell do you care how much I or anyone else pays for any product. Since when did y'all become the pricing police. Some of you are so sanctimonious in your arguments, as if you are Nobel Peace Prize winners in Economics. Elementary economics teaches about supply and demand. Obviously there is a demand for Apple products. I for one will pay a premium for a great product. That's my business. I don't need any of you telling me how Apple ripped me off, as if you care about me and my finances.
You really need to break out of Apple distortion field. Apple is a minor player in most markets. Tablet market is an exception but it will not stay that way for long.
I think this statement is a little self contradicting. "demand is determined by utility" and " People buy it because it gives them real or psychic value" are both talking about the cause of demand but they define it slightly differently. In case of Apple, the psychic element sometimes trounces the utility.
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Is Google in the process of making a tablet, or are they just providing the OS for other manufacturers who make tablets? Similar to the smartphone market.
If they aren't, I wish people would stop manufacturing this Google against Mac argument. Google does not make hardware.
It's like saying a 'Microsoft computer'. No one says that. They say a xxxx computer running Windows xx. So when talking about smartphones please say an HTC phone running Google OS, or a Samsung phone or tablet running Google OS, etc. That makes more sense.
If they aren't, I wish people would stop manufacturing this Google against Mac argument. Google does not make hardware.
It's like saying a 'Microsoft computer'. No one says that. They say a xxxx computer running Windows xx. So when talking about smartphones please say an HTC phone running Google OS, or a Samsung phone or tablet running Google OS, etc. That makes more sense.
Are you also suggesting people to say "Apple phone running iOS"? It sounds like what you are trying to say is that Android does not make sense. Have you seen those stupid Mac vs PC commercials? It's exactly the same case.
This Thread Is Hilarious
up until post #86 everyone was swallowing the Samsung Big Lie/Hype of 2 million Galaxy Tab "sales." the Android fans were announcing the inevitable triumph of Android, citing those bogus figures as proof. and offering plenty of assured rationales in furtherance of that certitude.
then it turns out the Galaxy Tab is really a Huge Flop instead (Next of "Kin," eh?). DOA as predicted by Steve Jobs in October.
so lo, first in later comments we see some denial, followed by excuses. when do we get to the rage?
but i like the gloating best! boy, do they have it coming.
up until post #86 everyone was swallowing the Samsung Big Lie/Hype of 2 million Galaxy Tab "sales." the Android fans were announcing the inevitable triumph of Android, citing those bogus figures as proof. and offering plenty of assured rationales in furtherance of that certitude.
then it turns out the Galaxy Tab is really a Huge Flop instead (Next of "Kin," eh?). DOA as predicted by Steve Jobs in October.
so lo, first in later comments we see some denial, followed by excuses. when do we get to the rage?
but i like the gloating best! boy, do they have it coming.
i own that phone, i drinks the kool-aid.
Honestly the whole thing was media overblow, people need to get over themselves.
BS. Apple's average profit margin has been around 32-36% for the last 4 years. There's exceptions like the appletv V1 were they have accepted a lower profit margin, estimates pegged it at 22-25%, due to the low volume and a desire to promote a new product category.
Most manufacturers get between 15 & 22% net profit on consumer electronics, with some aggressive markets like flat screen tv's reported in the single digits.
The reason that Apple can maintain these levels of net profit is due to the efficiencies and scale they've built up in iPods, iPhones and now iPads. Comparing these against their competitors, there's little to no pricing premium or (apple tax) as some like to call it.
The difference this gives apple over these other companies is that Apple has the financial clout to engineer, buy and licence themselves into new markets. The iPhone wouldn't have happened if Apple hadn't have had such a success with iPods.
Now you may not like that, feel that it's paying over the odds to a commercial entity that will just take that excess cash and fund new businesses. Fine go elsewhere, that's the joy of an open market. In the meantime i have no problem paying a slight premium for a much smoother and more complete user experience. You pays your monies and takes your choice.
M.
This comment makes no sense. The iPhone is an Apple phone, running Apple's OS. Isn't that true? So you can say Apple phone, or iPhone, because it is an Apple phone. Apple created the phone, running their system.
The phones running the Android OS, are manufactured by another company. So the proper terminology is "Android-based" phone, not Google phone.
With respect to Mac vs PC, PC has become synonymous with computers running Windows as their operating system. Technically, a Mac is a PC, because PC only stands for personal computer. But Apple has done a great job of marketing itself against the status quo. However, show me one instance where you hear some one say 'Microsoft computer'. They don't say it, because Microsoft, like Google, doesn't make computers. So no, its not the same case. Your logic is off.
Samsung transcript mistake: "smooth sales" not "small"
Having been a Korean linguist for the NSA and US Army, I was suspicious of the whole "sales were quite small" quote from a Samsung official that was being passed around.
It didn't sound like something a company officer would say in the first place, and with an accent words could be confused.
Others were wary too, and pointed out that it sounded differently in the audio recording.
Now the Wall Steet Journal has noted the corrected transcript.
What she actually said, was that Tab "sales were quite smooth".
“Well, your question was on sell-in and sell-out. As you heard, our sell-in was quite aggressive and this first quarterly result was quite, you know, fourth-quarter unit [figure] was around two million. Then, in terms of sell-out, we also believe it was quite smooth. We believe, as the introduction of new device, it was required to have consumers invest in the device. So therefore, even though sell-out wasn’t as fast as we expected, we still believe sell-out was quite OK.”
Having been a Korean linguist for the NSA and US Army, I was suspicious of the whole "sales were quite small" quote from a Samsung official that was being passed around.
It didn't sound like something a company officer would say in the first place, and with an accent words could be confused.
Others were wary too, and pointed out that it sounded differently in the audio recording.
Now the Wall Steet Journal has noted the corrected transcript.
What she actually said, was that Tab "sales were quite smooth".
“Well, your question was on sell-in and sell-out. As you heard, our sell-in was quite aggressive and this first quarterly result was quite, you know, fourth-quarter unit [figure] was around two million. Then, in terms of sell-out, we also believe it was quite smooth. We believe, as the introduction of new device, it was required to have consumers invest in the device. So therefore, even though sell-out wasn’t as fast as we expected, we still believe sell-out was quite OK.”
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1) Who said Apple needs to churn out crap? Why the paranoia?
2) It does? Funny, my iP4 has a terrible antenna!
It just works is a worn out old phrase from back in the day.
It should work for the price Apple charges.
The light bulbs I bought today work too.
Why be hyper sensitive about Android?
I'm cautiously optimistic, and increasingly so every day that passes without an official Apple event or announcement regarding the iPad 2. Why haven't we heard anything official? Because Apple is pulling out all the stops to deliver a "Retina" display on the iPad 2. Game over.
update the article (again)
https://www.macrumors.com/2011/01/3...-market-in-4q-2010-as-android-gains-momentum/
But what did she mean by "smooth"?
j
They clearly need to update the article...
https://www.macrumors.com/2011/01/3...-market-in-4q-2010-as-android-gains-momentum/
But what did she mean by "smooth"?
j
No, economists understand that "utility" is ENTIRELY a subjective matter. A given product's "utility" is defined as the value of that product to a specific potential purchaser. Further, the utility to that person is a product of that person's own mind - a complex combination of what the product allows the person to do, how the product makes the person feel, etc.
A chicken's utility depends not just on the caloric content of its meat and eggs, but on how much chicken feed costs in your area, whether you have room for a roost, whether you are a vegetarian, whether you already have more than enough chickens, whether, as a young child, you choked on a chicken bone and thus have an aversion to chicken meat, whether your beloved childhood pet was a chicken, whether your homeowners' association allows livestock, etc.
The "utility" of something to a person is always a function of both factors external to the person and factors internal to the person.
So the demand by that person for a product is a function of all these factors (which determine its utility to that person). This utility determines the price he is willing to pay for each additional chicken. (And his utility changes each time he buys a chicken).
The aggregate effect of individual utilities for individual consumers is what determines the market demand for something. 10 people are willing to pay a million dollars. 1000 people are willing to pay a thousand dollars. 100,000 are willing to pay a hundred dollars. Etc.
Intersect this demand with available supply, and you have the proper price for something. The "cost" is relevant primarily only in that it effects supply. Everyone on the planet is willing to buy one for a penny, but the supply of available chickens for a penny is 0, because no one can make chickens for less than a penny.
Amazing how one changed word can cause such a ruckus.
I bet Samsung had some uh, interesting words to say to the transcriber company they use.
Well, she's native Korean trying to find the right English words, so it makes it harder to interpret. I listened to the call's audio recording and she used "quite" very often, so that was a favorite word.
My guess is that she meant that end user sales were "steady", albeit at a slightly lower rate than they had internally predicted.
cool.
but how do products like xbox 360 (which sell for less than the cost to make) affect this utility / demand balance? If the utility of a chicken is X, but it is being sold below that - what effect does it have on the whole equation? (obviously I am not an economist)
j