More Apple pwnage

[Nikolai]

Razr are a phone that are several years old. When it came, it was priced ca 500 USD. That was, what, some time before 2005? And now it's sold for 100 USD you say. I say, go figure, so long after.

[Kidlicious]

Originally posted by Nikolai
Razr are a phone that are several years old. When it came, it was priced ca 500 USD. That was, what, some time before 2005? And now it's sold for 100 USD you say. I say, go figure, so long after.

I think the bigger point is that analysts don't see a problem with a quick price cut on a cell phone product. It doesn't mean there is a problem with demand.

[Nikolai]

What would be interesting to know though, is what is considered a quick price cut?

[Kidlicious]

Originally posted by Nikolai
What would be interesting to know though, is what is considered a quick price cut?

In this context it means quicker than price cuts for other types of products.

[Nikolai]

Well, but does that mean two months? Less? More?

[Agathon]

Originally posted by Provost Harrison
That and he can give Agathon a good pasting. I forgot how obnoxious Agathon was when left unchecked.

So Asher being consistently wrong achieves that... how strange. You might want to check that bias.

[Kidlicious]

Originally posted by Nikolai
Well, but does that mean two months? Less? More?

Yes, that analysts are saying that a price cut for cell phones in 2 months doesn't indicate a problem with demand.

[Asher]

Originally posted by Kidicious
Yes, that analysts are saying that a price cut for cell phones in 2 months doesn't indicate a problem with demand.

The RAZR did not have a big price cut after 2 months. If the analyst said that, he's lying.

[Asher]

Originally posted by Agathon
So Asher being consistently wrong achieves that... how strange. You might want to check that bias.

PH has some bias to favour me and/or my arguments? You might want to do some research, PH and I are at odds more than we agree.

[Asher]

Originally posted by Nikolai
Razr are a phone that are several years old. When it came, it was priced ca 500 USD. That was, what, some time before 2005? And now it's sold for 100 USD you say. I say, go figure, so long after.

The RAZR was released in 2004. It's been on the market for over 3 years.

It had its first pricecut to transition from being a high-end phone to a mid-range phine in 2005 -- a year after its debut, not 2 months.

http://en.wikipedia.org/wiki/RAZR

[Kidlicious]

Originally posted by Asher

The RAZR did not have a big price cut after 2 months. If the analyst said that, he's lying.

Analysts (more than one) said that the price cut after 2 months (for the iphone) does not indicate a problem with demand. Just admit that you have been pwned. You have nothing left.

[Asher]

You can find an analyst opinion on anything, depending on what stocks they own.

If there was no problem with demand, there's no reason to create MORE demand by lowering the price. This is basic economics.

[Kidlicious]

Originally posted by Asher
You can find an analyst opinion on anything, depending on what stocks they own.

How pitifully wrong you are. Can you find one?

If there was no problem with demand, there's no reason to create MORE demand by lowering the price. This is basic economics.

You don't know **** about economics son. You don't create more demand by lowering the price you just sell more. You create demand by advertizing.

This is like taking candy from a baby. You are disasterously unqualified to debate me.

[Asher]

You don't know **** about economics son. You don't create more demand by lowering the price you just sell more. You create demand by advertizing.

A league of your own, clearly. Or perhaps just a banana-boat with Agathon.

[Pekka]

I'd have to agree with Asher, the denials of iPhone problems are quite amazing.

Also, you have to factor in that they manufactured 10 million units. So there's a fixed limit of how much you're going to sell, also you have to take the timing into account. It's not just 2 months and a price cut. In general it's nothing new, however, this is the first product of this kind, it was known to be overpriced heavily. If they are such a dominate force, outselling everyone, they wouldn't need to make such a big price cut (over 30%?) right now. Instead, they would make more profit by selling them as it is and not make the loyal customers feel like they just got screwed over fast.

Apple is mostly a company that thrives on its image. Actual technology or feats are not the strong point of it, it's purely brand. You want to keep that image excellent, it's your #1 selling point, it's your strategy. You're definitely not going to want to take a hit for no reason at all, or to just lower the price because it's the thing to do.

My point is, even though they are selling, they aren't selling enough. It's a global market, it's not enough to sell some locally, the hype is dying. The hype of iPhone went down hard after the release. They can't afford to lose those value points, so they need to sell more units. They need to be able to carry this thing to the 2008, it's not enough to get a good result for the end of this year, they need an excellent result or excellent hype, so they can come out strong the next year as well. If they take a hit in the Q1 because their Euro release doesn't go well, which is predictable, they will lose a lot of value, and few million units sold won't make much of a difference competition wise.

This follows the whole playstation 3 example, they overpriced theirs and had to cut the price and should cut it more. They created a hype, but they were LATE, they entered way too late and their release wasn't a big enough success to carry the price or the technology over. And their tech is at least decent. Their competitors had already taken their time in the market and established themselves with the same generation product, creating the support for it, services and products. That's why they got into trouble with it and the hype died fast like a speeding bullet. The exact same thing is happening with iPhone right now, so they're at least trying to make moves now and not sit and wait like Sony did, insisting they are right and the consumers are just too stupid to understand their fine product.

It's time that companies like Apple and Sony stop underestimating the market.