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The 16GB iPhone is NOT a ripoff
- Thread starter warrior2000
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So there is no argument. Just faith and blind trust. What's the point of discussing anything here if the simple answer is just blindly trusting and therefore anything else doesn't apply. There's no discussion to be had there.
There's no next there. It's the end before it even started.
Amazing!
A company tries to price a product at Supply and Demand equilibrium!
What a concept! So you think Apple should just give away stuff for free? LOL. Apple can barely keep up with iPhone demand for the first 6 months of release and you want them to give more stuff away for free? LOL. This isn't candyland, this is real life.
Not blind trust.
Apple has a proven tract record of success.
Its like a friend who never lied to you for 20 years. Then he tells you something that seems unbelievable. Are you going to trust him? I would because he has a proven track record.
Apple has a proven tract record of providing customers with the best products and user experience. Its been this way for decades.
Around $10 more per phone. Not gonna do that much damage to a company that makes as much money as Apple.
Not sure you've been reading the same thing as me. You're caught in a world where numbers are the only thing that matters so I pity you.
I want apple to give premium specifications to a premium phone. As simple as that. Apple makes more than enough money, and consumers have given more than enough of their money to apple, so sometimes it is Apple's turn to give back.
I really really shudder to think of a word run by bean counters like you. We'd all be screwed over by companies with no mercy whatsoever, because apparently slightly higher product margins matter more than anything else.
Nope. Its not about the saving they make from replacing a 16GB chip with a 32GB chip.
You need to calculate how many users who would normally buy the 64GB phone if the line up stayed the same (16/64/128) but would opt for the 32GB phone with a new lineup (32/64/128).
For each of those situations Apple would lose about $75-$80 of pure profit.
Since when do consumers care how much a company would lose when moving with the times? On that reckoning they should offer 8GB of storage and 1GB of RAM forever. After all, we wouldn't want to lower their profit margins would we.
Which says nothing about the fact that they can still improve as they have been over time.
Yes because Apple USED to put customer experience first and foremost. There is a reason that the iPhone is no longer a 4Gb phone. BECAUSE they realise that 4GB was not enough, the same with 8GB and the time has come for the same with 16GB. Its 2015 not 2009.
without bean counting Steve Jobs almost ran Apple into bankruptcy.
You need a balance of both.
And that benefits the customers how again? It's clear that Apple can make more more money by doing less or using cheaper components, but the big part of this was that it was somehow benefiting the customers.
Well good for them. Sometimes the consumer should come ahead of things like that. Apple is the richest company in the world. They can more than afford it. Plenty of people will still buy a 64 GB phone.
The second round of Jobs was not about bean counting. Apple proposed by putting the customer slightly ahead of profit margins which is no longer the case.
I don't think consumers need to care about the profits Apple makes.
I'm just explaining why Apple did not start with 32GB. And its not because Apple is greedy. Their profit margin is 21%. That is not excessive at all. But if you do think 21% profit margin is excessive feel free to buy a discount brand phone. Hundreds of millions of people are willing to pay for Apple products.
LOLOLOOLOLOOLOLOLOLOLOOL!!!!
The first generation iPod was $400! Which inflation would be $540 in todays money!!!
Give me a break! Apple has always priced their products in the premium sector.
+1!
Obviously Apple would lose money by upgrading the entry level to 32gb, but looking at their financial numbers it wouldn't hurt them at all. But Apple prefers to slightly increase their profits to make the pile of unused cash even bigger instead of selling a way better product.
I can't judge them for doing this, in the end it's a commercial company, but I can't get in my head that a customer praises them for doing that
And how many times have those deemed trustworthy been found to be hypocrites or liars or involved in something else nefarious? Reality proves your basic assumption wrong. The fact that you would even try to use that to support your arguments in the face of reality showing that it simply isn't true only further demonstrates the flaws in the foundations of the arguments.
As a tech lover, I can assure you, first generation anything eats the R&D costs baked in. That is a given.
I am too, but for my top dollar I expect a premium product. It is marketed as such and perceived to be such so I expect them to come up with the goods. If you buy a Rolls Royce you don't expect to have to pay extra for alloy wheels and leather seating. Such luxuries come as standard. Likewise, in a premium luxury phone I expect sufficient RAM and sufficient storage space to come as standard. If you buy an iPhone you don't expect to see someone with a bottom of the range Android phone who has more RAM and a similar storage amount to yourself. There is making a profit and there is ripping customers off, you don't seem able to make the distinction.
Damn, this thread is still going? I dismissed this guy that seems to have made his account with the single purpose of running this troll thread days ago.
+1!
Obviously Apple would lose money by upgrading the entry level to 32gb, but looking at their financial numbers it wouldn't hurt them at all. But Apple prefers to slightly increase their profits to make the pile of unused cash even bigger instead of selling a way better product.
I can't judge them for doing this, in the end it's a commercial company, but I can't get in my head that a customer praises them for doing that
Go look at the stock price in late 2012/early 2013.
Profits were down a mere 10% and Apple stock tanked 45%.
That is NOT a minor thing. You do realize that almost all of the top employees have 90% of their compensation in stock options. If the stock tanks again and stayed down you will lose top talent. Reason is their pay at Apple will not be even close to what they could make at other tech companies that have a strong stock price.
Growing Profits = strong stock price = strong stock compensation to employees = retaining top employees = great products.
Without strong growth in profits Apple would have to cut costs somewhere. It may be R&D, employee compensation, or just use cheaper quality components.
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