Why are lightning adapters so expensive?

Discussion in 'iPhone Accessories' started by Arran, Sep 17, 2012.

  1. Arran macrumors 68040

    Arran

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    #1
    Could the high prices be a way for Apple to ration what'll be a hot item (at least initially) and make sure everyone has a chance of getting some?

    In the past, hot items have been bulk-bought then flipped on ebay to bag handsome profit for the flippers (remember the iP4 scalpers?). It infuriated and alienated many loyal customers who couldn't buy the devices at retail. At the same time, Apple was giving away margin to the scalpers, because folks were obviously prepared to pay the scalper's ridiculous prices.

    Thoughts?
     
  2. IllIllIll macrumors 6502a

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    #2
    Conspiracy theorize much?

    Since the Lightning pinouts are all digital, there most likely is circuitry in the Lightning-30 pin Dock adapter to convert a digital audio signal to analog line-out. That's probably the reason why these things cost $30.

    How would artificially boosting the price of these discourage resellers?
     
  3. rwilliams macrumors 68040

    rwilliams

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    #3
    Apple sells everything for $29, whether they're worth that price or not. It's just what they do.
     
  4. AuroraProject macrumors 65816

    AuroraProject

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    #4
    It's small, therefore it's harder to get the magic smoke in there.
     
  5. Advil macrumors 6502a

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  6. Arran thread starter macrumors 68040

    Arran

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    #6
    Hardly a conspiracy. I was thinking Apple's intent was (relatively) benevolent. They will, of course, make more themselves.

    Because it eats into the reseller's margins (working on the assumption there's a fixed upper price the consumer will bear).

    ----------

    Can't argue with that. It seems to be some sort of psychological price point of theirs.
     
  7. JJJosh41 macrumors regular

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    #7
    :D The power of marketing.
     
  8. IllIllIll macrumors 6502a

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    #8
    And when has a tactic like this ever worked? I think you're way off base.
     
  9. Arran, Sep 17, 2012
    Last edited: Sep 17, 2012

    Arran thread starter macrumors 68040

    Arran

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    #9
    I was just thinking of it as "skimming". The common pricing tactic of charging a high price initially, because the market will bear it. One thing the scalpers proved was that, initially, the market would bear it.

    Ref: http://en.wikipedia.org/wiki/Pricing_strategies#Creaming_or_skimming

    But, you know, I guess it could backfire on Apple if the early adopters see the price drop and complain. Thinking about it, that's exactly what happened with the original iPhone. Apple had to backpedal and issue partial refunds via Steve Jobs' open letter: http://www.apple.com/hotnews/openiphoneletter/

    Okay, okay, maybe it's not such a smart strategy after all :)
     
  10. dkersten macrumors 6502a

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    #10
    Because Apple knows people will buy them. All I can say is I can't wait for the Monoprice/Amazon versions that are 1/10 the cost
     
  11. mobilehaathi macrumors G3

    mobilehaathi

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    #11
    $$$$$$$$$$$$$


    I mean seriously, you had to ask?
     
  12. bobright macrumors 601

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    #12
    Seriously going to grab one from Monoprice for sure
     
  13. ixodes macrumors 601

    ixodes

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    #13
    Apple loves it's customers money. As long as it's in Apples coffers :)

    They are the masters at grabbing huge margins.

    Welcome to the world of Apple.
     
  14. Archer1440 macrumors 6502

    Archer1440

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    #14
    There's at least a proprietary a/d chip in there. You are not likely to see cheap knockoffs for quite some time.
     
  15. Thrilledge macrumors regular

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  16. Cougarcat macrumors 604

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    #16
  17. theautopilot macrumors 6502a

    theautopilot

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    #17
  18. der-kaiser macrumors 6502

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    #18
    /thread
     
  19. NickRno77 macrumors regular

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    #19
    Because Apple like large profit margins! There are loads of replica adapters on eBay so hopefully they'll be ok? No lightning to mcro-USB adapters yet :(
     
  20. theautopilot macrumors 6502a

    theautopilot

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    #20
    Do they contain DAC's?
     
  21. NickRno77 macrumors regular

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    #21
    Don't know ?
     
  22. Primus84 macrumors 6502

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  23. SheepNutz macrumors 6502a

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    #23
    Yes, they do.
     
  24. theautopilot macrumors 6502a

    theautopilot

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    #24
    The cheap eBay ones contain DAC's? Really? :eek:
     
  25. SheepNutz macrumors 6502a

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    #25
    No, I didn't say that. I was saying that the APPLE ones contain a DAC, that's why they are so expensive.
     

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