Originally Posted by samab
At what price? Apple is getting 50-60% profit margin on the iphone and 30-40% profit margin on the ipad --- while Nokia is getting something like 12% profit margin.
Many people here owns Apple stocks --- but the perspective of the shareholder might not be aligned with the perspective of the end-user.
I am not sure you are advocating for the consumer or the stockholder.. At least, one thing I got was that there is a dichotomy in the interest of the two.
If you think that those who argue here in favor of Apple's high profit margin are because they are stockholders, that may or may not be true. However, I doubt very much that Steve Jobs or the company priced their products simply to satisfy their stockholders. Judging from their responses, Apple does not even give much consideration to attempts of stockholders or more accurately, the big financial management firms to distribute that $60 billion cash reserve. [I don't know how many Apple shares I own but there would be some indirectly from the multual funds I invest in.]
If your complaint is that consumers are being shafted by Apple for the perceived "charging" too much for a product, from what I read, among long time Apple users or even new ones, that is not the case. From those I know alone, they buy Apple products because they found it useful or better experience than the others they have used before. I have a friend for example who must have used all types of phones before, very loyal. Then, one day, she just bought an iPhone. I thought it would be too small for her to do most of her computer work (she has bad eyes and kind of older already) but she told me that she did most of her daily stuff now with her iPhone (banking, internet, emailing, etc.). She is very sociable, most of her group were devout RIM, Nokia, Windows users. The last time we talked she told me that many of them have converted to the iPhone, even the person who only bought an iPod touch initially because he could not part with his Blackberry because it has all his business contacts. These are people who even know less about RAMS, or multitasking, etc. Even more amazing, another friend who did not want her daughter to have an iPad (tye daughter wanted the iPad), and bought what she thought was a more useful "Dell computer", eventually bought an iPad herfself, when she went back to school, and after she bought and got so hooked up with her iPhone4 *with unlimited usage" -- data, phone text messaging. You might think she is rick, but she was not.
And this was in a place in Louisiana, where it was even more rate to know anyone who used a Mac. The friend who was persuaded by her son to buy a Dell computer, she had a pink iMac before that, was fed up with her Dell computer after it got infected with a virus twice. The repairs alone plus the cost of the external disk would be more than the cost had she bought the latest iMac or notebook, two years ago. After her very productive experience with the iPhone, she vowed never to buy any PC again. She is not saving for either the MacBook Air or an iPad.
As a long time Apple user myself, I do not consider Apple products overpriced. Sure I would want the devices I buy to be cheaper, and I would hunt for bargains (like tax free days). I do not have the computer expertise to be tinkering with my computer. If I want something installed that would require opening the body, I pay a technician to do it. If there is anything I do not understand, I want to talk to someone who knows something about it. Being able to do this got even easier when the Apple Stores came to Boston. So, I consider all these when I choose a computer, as part of the total cost.
As to support, consider this issue. I have not bought an iPhone yet because, I have a very good deal with Sprint. During one of my travels, the phone I had just stopped working (dropped too many times), I had to get a replacement. It took too much time. Then, I eventually replaced it with supposedly a long-lasting battery phone from Samsung. I was supposed to get a $50 rebate from Samsung, but it never arrived. After notying the local branch of Sprint in Boston, they just told me to write to Samsung again? i never got the money.
After a few months, the supposed long lasting battery cell phone gets discharged faster than claimed. I had it checked by Sprint, and they claim nothing is wrong with it. Just so frustrating, but there is no recourse because I have no direct contact with the phone manufacturer. This would not have been an issue, if my phone was an iPhone. I could have gone to the local Apple Store to deal with the matter.
I have used the iPhone, and liked it a lot. I would want one but I could not justify the monthly costs over and above what I pay now with Sprint. I could buy a good iPad yearly for the extra cost of current iPhone usage charges.
However, when my contract with Sprint next yearwould be over, I am likely to bite the bullet, and reconsider holding up not getting an iPhone.