The 6 is the same price as the 4 was four years ago!

iBreatheApple said:
And you realize that these same parts have gotten significantly cheaper over time, right?
Click to expand...

Yes, and apple can spread it's R&D and sunk manufacturing costs over an ever increasing amount of phones. But the fact remains that they are also squeezing more and more out of a box that is pretty darn small. There's only so much they can do before the price of the phone starts to creep up more than shareholders would like (they may have found that the market (you guys, the audience) won't support even a $50 increase in price so they can't pass the costs off onto end users).

There are some neat android and windows prepaid phones out there for under $100, no one can deny that. But those phones exist because of the demand for innovation by iphone and galaxy users alike (never had an Samsung, but they have surely helped apple stay on their toes).

That the iphone has stuck at $199 for a 16 GB subsidized price here in the US is amazing considering that these aren't just off the shelf parts, it's a bunch of new stuff (I'm more a finance guy than IT guy so forgive me if there are some things that aren't new, but it seems like the bulk of the iPhones parts are orginal to the 6).
 
In this thread we have people who don't understand that technology becomes cheaper as time goes on and the same amount of money that bought the processor in an iphone 4 years ago nets you a much more powerful one today, and that apples margins on the iphone are very, very much in their favor.



One second guys I'm going to go sell my old graphics card for the price I bought it for 5 years ago.
 
phx said:
Yes, and apple can spread it's R&D and sunk manufacturing costs over an ever increasing amount of phones. But the fact remains that they are also squeezing more and more out of a box that is pretty darn small. There's only so much they can do before the price of the phone starts to creep up more than shareholders would like (they may have found that the market (you guys, the audience) won't support even a $50 increase in price so they can't pass the costs off onto end users).

There are some neat android and windows prepaid phones out there for under $100, no one can deny that. But those phones exist because of the demand for innovation by iphone and galaxy users alike (never had an Samsung, but they have surely helped apple stay on their toes).

That the iphone has stuck at $199 for a 16 GB subsidized price here in the US is amazing considering that these aren't just off the shelf parts, it's a bunch of new stuff (I'm more a finance guy than IT guy so forgive me if there are some things that aren't new, but it seems like the bulk of the iPhones parts are orginal to the 6).
Click to expand...

It's not that amazing when you consider that they started out at an over inflated price and sold a record number of product, and hold more cash on hand than any other product company. So much free cash on hand that it makes investors (myself included) a little nervous.
 
vgamedude said:
In this thread we have people who don't understand that technology becomes cheaper as time goes on and the same amount of money that bought the processor in an iphone 4 years ago nets you a much more powerful one today, and that apples margins on the iphone are very, very much in their favor.

One second guys I'm going to go sell my old graphics card for the price I bought it for 5 years ago.
Click to expand...

Evidently these kids are too young to know about Moore's Law (look it up.)
 
Surf Monkey said:
Yeah, they are, actually. Just like refrigerators and washing machines.
Click to expand...

The smartphone is a more disposable commodity than tv's, computers and other appliances. Most people toss their old phones after 2 years, while most keep their other appliances for 5 to 10 years.
 
dgree03 said:
I don't think you understand the definition of a commodity.

How can smartphones not be a "commodity" but Tv's and PC's are?
Click to expand...

Evidently you're not familiar with investment terms.

Commodity products are virtually interchangeable. A barrel of oil is a barrel of oil no matter what hole in the ground it came out of. In a similar way certain consumer products are thought of in these same terms. The component parts used to make them all come from the same sources, so for all intents and purposes they're the same product, even though minor features and brand names may differ.
 
Surf Monkey said:
Evidently you're not familiar with investment terms.

Commodity products are virtually interchangeable. A barrel of oil is a barrel of oil no matter what hole in the ground it came out of. In a similar way certain consumer products are thought of in these same terms. The component parts used to make them all come from the same sources, so for all intents and purposes they're the same product, even though minor features and brand names may differ.
Click to expand...
So basically all smartphones are a commodity. The LCD screens are generally made by the same two companies. The chips are generally made by the same one or two companies. Same with the speakers, cameras, etc.
 
wxman2003 said:
The smartphone is a more disposable commodity than tv's, computers and other appliances. Most people toss their old phones after 2 years, while most keep their other appliances for 5 to 10 years.
Click to expand...

Disposability has nothing to do with it. Interchangeability and generic-ness does. Like I said: refrigerators are a commodity. Ovens are a commodity. TVs (outside of the highest end models) are a commodity. Washing machines are a commodity. It's an investment and economic term. I'm not using it colloquially.
 
Surf Monkey said:
Evidently you're not familiar with investment terms.

Commodity products are virtually interchangeable. A barrel of oil is a barrel of oil no matter what hole in the ground it came out of. In a similar way certain consumer products are thought of in these same terms. The component parts used to make them all come from the same sources, so for all intents and purposes they're the same product, even though minor features and brand names may differ.
Click to expand...
Exactly, you just described a smartphone as a commodity
 
wxman2003 said:
So basically all smartphones are a commodity. The LCD screens are generally made by the same two companies. The chips are generally made by the same one or two companies. Same with the speakers, cameras, etc.
Click to expand...

No. Here. Read this:

http://en.m.wikipedia.org/wiki/Commoditization

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dgree03 said:
Exactly, you just described a smartphone as a commodity
Click to expand...

No, I didn't. Read the link above. Smart phones are not commoditized. Not yet. They may be some day, but not yet.
 
Surf Monkey said:
Commodity products are virtually interchangeable. A barrel of oil is a barrel of oil no matter what hole in the ground it came out of. In a similar way certain consumer products are thought of in these same terms. The component parts used to make them all come from the same sources, so for all intents and purposes they're the same product, even though minor features and brand names may differ.
Click to expand...
So basically fungibility. Macs are considered personal computers. Would you put them under the same umbrella?
 
rui no onna said:
So basically fungibility. Macs are considered personal computers. Would you put them under the same umbrella?
Click to expand...

Nope. I said PCs specifically, not home computers generally.

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wxman2003 said:
And here is the definition of commodity. "In economics, a commodity is a marketable item produced to satisfy wants or needs." Sounds like a smartphone.

http://en.wikipedia.org/wiki/Commodity
Click to expand...

You're using a different definition. Therefore your rebuttal is irrelevant.
 
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