One thing I don't get is why the iPhones cost more than iPads. They've got essentially the same hardware, except for the displays which should be more expensive on the iPads
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iPhones/Galaxy S5/Note 4... Consumer Price Gouging
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I doubt it has anything to do with that. iPads and iPhones are both sold under the same brand, and the iPad is often positioned as the more luxury device.
My guess is that Apple is taking advantage of people being insulated from the true price.
Apparently you do too. Doesn't change that fact that your argument doesn't hold water. Look up price gouging then ask a mod to remove this thread. Thanks.
Can you tether on that plan ? (where the phone serves as a modem for your laptop)
Price gouging refers to selling something above market value (usually a needed commodity) when there are no viable options available.
A luxury smartphone is hardly a needed commodity. And there plenty of options out there. In that case the old laws of supply and demand apply. Apple charges what the market will bear. Consumers vote with their wallet. If customers went to other products in drove, the price would go down.
A luxury smartphone is hardly a needed commodity. And there plenty of options out there. In that case the old laws of supply and demand apply. Apple charges what the market will bear. Consumers vote with their wallet. If customers went to other products in drove, the price would go down.
Sadly, this poster continues.
Go back and read the first page of this thread and then move on to something else.
Sadly.
I did. The title of your thread is "iPhones/Galaxy S5/Note 4... Consumer Price Gouging".
Thanks!
It's not a matter of it being okay or not; it's what the market will bear. Flagship products in many industries command enormous margins, particularly when the market for the product is relatively new and rapidly expanding.
Consumer electronics products can also take advantage of economies of scale much more effectively than many other industries. It's worth noting that most of the companies in the smartphone industry are unprofitable at the moment despite the fact that they sell most, if not all, of their products with a positive gross margin. They simply lack the volume to make the operation profitable after accounting for R&D, marketing, and other expenses.
Apple's supply chain management also helps them keep marginal costs low because they're essentially a monopsonist with regard to their relationship with some suppliers. I'd be surprised if they don't get equivalent components at cheaper prices than their competitors.
Your definition is not entirely correct. Price gouging is selling essential commodities at inflated prices over what their standard price was prior to the price jump and primarily in the context of times of emergency. There may be other alternatives, but that's not part of the strict definition of it.
Statutes can vary state-to-state and in different countries.
I didn't read the thread but I have two things to say:
- Most people don't care what the iPhone costs because they're paying $199 for it on contract every 2 years.
- It's your choice to buy or not. The consumer votes with their wallets. Consumers as a whole have decided that such products are worth the price Apple is selling them for.
You're failing to read and comprehend. From page 1:
Anyway, I'm using price-gouging more loosely and am not the first and likely not the last to collocate price-gouging and smartphones/mobile phones/carriers in the same piece.
Gouging is a common term used as I have. Legal discussions are another topic.
http://www.theglobeandmail.com/repo...akes-on-telecom-price-gouging/article4617157/
http://www.extremetech.com/mobile/1...o-send-a-text-message-on-earth-than-from-mars
http://www.digitaltrends.com/mobile...ging-you-and-we-have-the-numbers-to-prove-it/
They're not paying $199 for it, they're paying the full price of it spread out over 2 years. They don't just strictly pay $199 for the phone.
Lol you're missing the point. Friday, launch day of iPhone X, most people feel a $199+applicable taxes hit to their wallet Only. In their eyes, they're paying $200 that day for the shiny new iPhone.
Hey man, you can definitely watch your tone. I don't appreciate the insult. I was addressing your over-the-top rant about phone pricing. You just said you're paying $1000 for a 128GB "phone". WRONG. What's your problem?
Yes I get that and I can see what you're saying. But the reality is much different...
Oh brother.
But back to the original question. Yes Apple, Samsung and the cell providers are charging us an arm and a leg for their products/services. But non essential items are priced by what the market dictates. As long there are consumers willing to pay $1000 for a phone with $100 monthly contracts, yes they are milking us, but this isn't price gouging.
Or free for many since they traded in their 5 or 5s. Until the subsidized model changes, you will not see Apple change their pricing model.
Apples profit margin is about 65% per iPhone 6 not including all other cost. After all their overhead their probably making 40% or so. The App Store makes Apple more money then the phone itself.
Why don't you buy another smartphone?
Nobody's forcing you to buy Apple.
You do realize that buy purchasing the iPhone, then complaining about it, does make you look foolish?
You need water, food, shelter to survive. You don't need a smartphone to survive.
Why do some Hermes handbags cost $50,000, when a Macy's bag may cost $100?
First world problems.
Nobody's forcing you to buy Apple.
You do realize that buy purchasing the iPhone, then complaining about it, does make you look foolish?
You need water, food, shelter to survive. You don't need a smartphone to survive.
Why do some Hermes handbags cost $50,000, when a Macy's bag may cost $100?
First world problems.
Pretty much everything you listed is in an iPad rMini/Air and that these devices can do that full gamut, which at certain configurations are a few hundred dollars less than the iPhone 6 Plus and are much larger, full blown tablets.
Dude, you sound like this iPhone parody commercial (specifically the 2 camera bit):
http://youtu.be/ZvG0fbdMwGc?t=42s
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Oh dear. But back to the original question.
It is not clear that smartphones are non-essential.
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I'm posting here to discuss this with other people and see what others think, not to be called foolish.
I realize I can buy another phone and have been thinking of throwing down for the Moto X. I haven't decided yet.
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