Zuckerberg: Apple 'Charges As Much As It Can' for Hardware, But Meta Is Willing to Sell at a Loss to Grow the Metaverse

[monstermash]

Apple is obviously overpriced if you look at the dollar amount you’re paying upfront

I totally disagree, unless you're one of those morons that upgrades every year.

My Mac Mini is 8 years old. I use it every day, with no sign of stopping any time soon. On a per year basis, it is almost free.

I had my last iPhone 4 years. I only replaced it because I dunked it and killed it. It cost $250/year....for a device that I use and rely on every day. Again, on an annual fee basis, practically free. I mean, working one day a year more then covers an entire year of using an iPhone.

How cheap does something need to be before it is no longer "over priced?"

Just because there are cheaper alternatives, doesn't mean the higher priced alternative is "overpriced".

 

[RavynArcadia]

You have to sell it at a loss because no one wants it dude.

That and we don’t want all of our info sold to everyone.

 

[PilotWoo]

Meta have sold the hardware at a loss for both Metaverse users.

 

[Abazigal]

It's true. It's why Apple lost in the TV streaming stick market and in the smart speakers market. Other companies were willing to sell at break even or low margins or even at a loss in order to make money through other ways.

It'll be tough for Apple to win in the VR market unless its devices are significantly superior.

People are forgetting one thing though. Apple has a billion strong install base with disposable income, and who would be more amenable to purchasing a costly accessory that they know integrates well with their Apple hardware.

It’s also worth noting that these markets have not really gone anywhere either.

This could well end up being the Apple versus android battle all over again. Facebook and Google get the market share (assuming that people are even willing to buy into a Google solution at this point), but Apple keeps all the profits.

 

[theotherphil]

LOL the comments here just prove Zuckerberg's right. All you emotionally attached sheep justifying Apple for selling you stuff is ridiculous. This is why Apple will never change and always make money off of you.
They know they have their fans buying the same product at any price only so they could sleep with the Apple sticker on their pillows

You're missing the point. People are willing to pay for a privacy focussed product.

Users really need to understand that their metadata has value and governments need to enforce that metadata cannot be collected or sold without user consent. I'd happily use products/ services such as Facebook if they had the following options:

1) Paid subscription, with no ads/ tracking.
2) Ad supported, but user takes 50% of all metadata sold and ad impressions delivered.

I'd take the paid subscription route every single time.

 

[Miha_v]

Hey Zuck! I’d rather pay more for hardware and keep my privacy then buy a cheap Oculus Quest 2, where I’d have to be logged into my FB account all the time.

 

[TightLines]

Metaverse - a scam that is even bigger than the bitcoin scam being perpetrated on society… of course they are going to give it away; thats all part of the recruitment strategy for the next greater fools that will occupy that space on Meta’s servers. Where the primary con artists will then sell the greater fools all kinds of valueless, ego driven, virtual nothings… so they can have a status symbol in their personal safe places. The place where they are whatever they dream themselves to be.

Meanwhile Zuck and his small army of global con artists (the wealthiest .0001%) are busy refining their study’s and the art & craft of B.F. Skinner, and trying to find additional ways to enhance the operant conditioning chambers they have developed and are managing. The next will be known as Metaverse 2.0 - Welcome to the Future edition, where your children will be clamoring for your money to buy them the latest skins for their persona to show what gangs they are affiliated with; and where you’ll be all too happy to toss them an Amazon card so they will leave you alone and to your own virtual reality world… Congratulations - had B.F. Skinner still been around, he would have elevated you in the ranks of his collection and army of mice.

How much will you lose to this developing scam?

 

[Mrkevinfinnerty]

If they get the social part right it will be a success. Facebook/Meta whatever they are calling themselves have a userbase that dwarfs Apples.

For all peoples chat about how they don't trust them there are a lot of people using their products.

Make no bones about it there are a lot of that iPhone install base that would give up their iPhone before they gave up instagram and Whatsapp if they had to choose.

 

[benjo765]

Picking fights with Apple is working out so great for Mark

 

[TightLines]

Picking fights with Apple is working out so great for Mark

There will be world wars between the Meta and the Apple flavors of the same scams… its like the battle of who will be The Godfather of all the scam and crime syndicates.

 

[TightLines]

If they get the social part right it will be a success. Facebook/Meta whatever they are calling themselves have a userbase that dwarfs Apples.

For all peoples chat about how they don't trust them there are a lot of people using their products.

Make no bones about it there are a lot of that iPhone install base that would give up their iPhone before they gave up instagram and Whatsapp if they had to choose.

It was recently discovered (i think they knew all along) and disclosed how many bots occupied Twitter… i would be willing to subscribe to the belief that Facebook/Meta is comparable from a percentage % standpoint. Would the zuck disclose such proprietary information? Doubtful…

And i would be willing to take the bet on “there are a lot of that iPhone install base that would give up their iPhone before they gave up instagram and Whatsapp if they had to choose.” - My bet is people would no lose their iPhone over some CIA/NSA supported crap spyware… it just ain’t happening. Thats why the zuck is out there talking up his next scam, the metaverse - as he sees facebook,instagram, and whats app in a slow death spiral… they need to get the replacement up and running by the time the inevitable sets in… a lot of the same weak minds that have become addicted to giving mark a digital profile of themselves, will fall for that scam as well.

 

[genovelle]

The issue Zuck has is that Facebook is yet to actually build a good product itself. The original Facebook has become a mess. They bought Instagram, Oculus and WhatsApp. Everything they launch that is a proper in-house Facebook developed original fails. People won't pay high prices for bad products.

Also, this is not a new business model - it's the Amazon business model. Kindles and Echos are sold at cost and sometimes a loss in order to become the dominant players in that market. It pushes people to use Amazon more.

The difference is there are other branches to Amazon. The problem with these companies is they are not expected to be profitable for decades. They got rich while giving away venture capital and then stock holder value. Real companies are held to a higher standard and are expected to be ever increasingly profitable quarter after quarter. Meta’s all in bet on VR may well be it’s coffin. I don’t see their vision taking hold as it expects a majority of users to want to live in a fake 3D environment for extended periods as a new way of life.

That is not realistic or useful.

 

[genovelle]

It's true. It's why Apple lost in the TV streaming stick market and in the smart speakers market. Other companies were willing to sell at break even or low margins or even at a loss in order to make money through other ways.

It'll be tough for Apple to win in the VR market unless its devices are significantly superior.

Apple is always playing the long game. They will design the highest quality device with unmatchable technology and the price will reflect that. They will over the next 3,5,10 years refine their vision while increasing volume to decrease cost. Eventually taking a significant percentage of the market. Remember Apple is almost always compared to the rest of a market. Like Apple’s iPhone is pitted against all android devices. So that’s every single android manufacturer combined

 

[Haust]

I just want to be able to avoid anything he does. I want him to leave me alone. Creepy!

 

[ShowsOn]

Next Zuckerberg will be trying to convince us that Meta is actually a charity.

 

[Stehsegler9]

When you product is in high demand you charge as much as you can. When no one is interested in your product you try and gain market share by giving it away for as little as you possibly can. Simple economics.

 

[svish]

Privacy is lost with a Meta product. So definitely not nice to buy even if it much cheaper.

 

[benspratling]

Fancy way to say "Apple sells premium products to discerning customers, but our products aren't worth anything to anyone."

 

[senttoschool]

I see it as a half truth and a misdirection. Most companies that sell cheaper hardware or software do so because their business model is centered around getting the most amount of ads (targeted or not) to the most amount of people, and they need you and me to have their hardware/software to deliver said ads.

Meta is trying to create the first VR App Store and take 30% of the commission.

 

[senttoschool]

If company gives away a product(sells at cost), it should make you think "Why would they do this" and if the answer isn't obviously 'to make money on services or licensing the content', then they are probably making money off of your data.

They're trying to make money from their VR App Store and take 30% of the digital sales.

 

[dwaite]

As much as I agree with Tim Cook that Metaverse is really undefinable at this point (and still not interesting/mature enough to care about it), the Zuck Zuck has a point. He is willing to bet everything for this project to take off, and it is hard not to respect that regardless of your stance.

Apple's most expensive pro phone, the iPhone 14 Max, is upgradable to 1 TB memory at $1599 USD. Thats the only phone SKU that beats the starting price of the Quest Pro.

My opinion is it is more likely that Apple, who is one of a handful of companies that can even design products to be manufactured at the scale of the iPhone, is simply better at product design and manufacturing than Meta.

In other words - if Apple designed the Quest pro, they could likely sell it at under $1500 and still maintain a comfortable profit margin. It is however likely that they would not sell the Quest pro as currently designed in the first place, though.

Apple is just an investor-driven money machine that will sell you the same hardware and design for as long as possible. This is why I think many people miss Steve who knew money followed innovation and calculated risk, not just blatantly repeating yourself. To sum it up? Zuck Zuck has a point t.

Everyone thinks Apple is some revolutionary product company (or at least was back when Steve Jobs was alive). The reality is that they usually are latecomers in existing markets, targeting particular areas where the market is ignoring, create products where appropriate and then evolve / refine those products over time.

The revolutionary parts from the focus on execution. For instance, Time Machine was hardly the first backup software, but it was as simple as plugging in a USB drive and switching a setting on. Rather than just treating it as a checkbox, they built something that they were comfortable pushing everyone to use, that everyone could figure out how to use - and then they marketed it as such, as the keystone feature of that macOS release.

Backups are about the most boring topic someone could bring up - but it was quite popular at launch.

 

[davidhands]

He missed the point (again).
Yes, Apple deliberately overcharge for their hardware - and their hardware is still the most popular on earth. Now why might that be?
Quality Mark, quality. Something Facebook does not have any of, as it tries to be all things to all men and is in the process of slitting its own throat via the endlessly inaccurate "fact checkers" (a euphemism for ridding the site of anything that disagrees with whatever the current policy du jour is). Facebook can't decide whether it wants to be your friend, or your mother.

 

[George Dawes]

You only attack what you fear

Apple are always late to the party , then end up totally dominating the sector

 

[cylack]

I hate Facebook and I’m still pissed it bought Instagram, as I like it and advertise for my business on it. Facebbok mixes Instagram advertising in its interface, making it a pain to deal with.

 

[bbplayer5]

Hard pass on anything Facebook. Sorry Zuck!