Apple expected to partially absorb higher quality control costs for iPhone 5

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Comments

  • Reply 21 of 22
    solipsismxsolipsismx Posts: 19,566member
    carthusia wrote: »
    I think the implication was that the costs were not being absorbed by Apple. Instead, as evidenced by higher retail prices, they were being passed along to the customer. But, maybe I'm missing something.

    I see no evidence that the price was raised because of this issue as the US market hasn't changed. Foreign market prices will fluctuate based on projected value of the local currency. This is nothing new.
  • Reply 22 of 22
    mikeb85mikeb85 Posts: 506member

    Quote:

    Originally Posted by auxio View Post


    I've heard that salesmen at Future Shop (electronics retail chain here in Canada) dislike Apple products because they don't get the same kickbacks from Apple that they do from other companies. Could be the same story at Vodafone.


     


    As someone who works creating technology, it pisses me off to think that not doing gladhanding becomes a barrier to the marketplace.  Innovation and quality should be the highest goals one reaches for in the industry, not trying to get things to market as quickly and cheaply as possible and then using the money you saved to buy off the supply chains.  Alas, if the average consumer doesn't care one way or another, this is exactly what will become the "winning" strategy for companies.


     


    A world of bland, mediocre, half-baked, copycat technology. *shudder*.  Though I guess that describes what sells best in any market.



    It's not that they get less 'kickbacks', it's that Apple keeps the margins for themselves (which are much higher than any Android OEM takes - the cost of an iPhone is less than a comparable Android phone), leaving slim margins for retailers, who in turn give less commissions to the salespeople.  Is it any surprise the salespeople at Apple stores work for a shitty hourly rate, and not commission?  


     


    It's Apple's greed that will be their undoing.  Samsung is ditching Apple as their contract sucks, and mark my words, Foxconn will too eventually....

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