I'm happy that <span style="font-size:13px;line-height:1.231;">Samsung doesn't copy everything that Apple does in order to get their high profit margins.</span>
<span style="font-size:13px;line-height:1.231;">E.g. It's nice that Samsung usually has a microSD slot, instead of charging for memory the way Apple does.</span>
<span style="font-size:13px;line-height:1.231;">- The 32GB iPhone 5 only costs Apple ~$10 more than the 16GB model, but Apple charges $100 more.</span>
<span style="font-size:13px;line-height:1.231;">- The</span>
<span style="font-size:13px;line-height:1.231;"> 64GB iPhone 5 only costs Apple ~$31 more than the 16GB model, but Apple charges $200 more.</span>
I don't understand people who praise a company for making so much extra profit off their customers, especially when the majority of that extra profit isn't even used towards new products or employees or charity or taxes or anything except hoarding. It's not like they're a starving startup.
You're making a mistake. You're assuming the starting price is an agreed upon "fair" price so that any upgrades are unfair because the cost of the component is less than you have decided is "fair" for the upgrade.
Try looking at it in a more rational way. Assume Apple will want to make the profit margin for the iPhone product category and they know they will sell x-many 32GB models to every y-many 64GB models. You end up with the low-end model being too low so the high-end model has to make up the difference.
That's how companies market their products. They typically don't sell upgrades at cost. There is an increased component cost but if they sell less of that component than others there is usually diseconomy of scale that may need to be considered. Note I'm including that to cover all bases but Apple sells so many of their devices that they surely have peaks on the economies of scale on pretty much all, if not all, of their components. Still, there is production and having to change up production to produce a different board can result in downtime so that cost will need to be considered even if it marginal.
Bottom line is you can't take the entry level price point of a product and attribute any component changes to how much the upgraded product should cost. That simply isn't they way products are priced in the market.
I wish they would raise their prices even further, make the iPhone $1199, iMacs over 2k and ask 6k and up for their MP. That way we'd have less whiners on this price model Apple has.
That would be a winner - Would like to see that as well.
Comments
You're making a mistake. You're assuming the starting price is an agreed upon "fair" price so that any upgrades are unfair because the cost of the component is less than you have decided is "fair" for the upgrade.
Try looking at it in a more rational way. Assume Apple will want to make the profit margin for the iPhone product category and they know they will sell x-many 32GB models to every y-many 64GB models. You end up with the low-end model being too low so the high-end model has to make up the difference.
That's how companies market their products. They typically don't sell upgrades at cost. There is an increased component cost but if they sell less of that component than others there is usually diseconomy of scale that may need to be considered. Note I'm including that to cover all bases but Apple sells so many of their devices that they surely have peaks on the economies of scale on pretty much all, if not all, of their components. Still, there is production and having to change up production to produce a different board can result in downtime so that cost will need to be considered even if it marginal.
Bottom line is you can't take the entry level price point of a product and attribute any component changes to how much the upgraded product should cost. That simply isn't they way products are priced in the market.
Quote:
Originally Posted by PhilBoogie
I wish they would raise their prices even further, make the iPhone $1199, iMacs over 2k and ask 6k and up for their MP. That way we'd have less whiners on this price model Apple has.
That would be a winner - Would like to see that as well.