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  • The cut the prices because it's a competitive market. This is a GENERAL STATEMENT!!!!! That doesn't mean you'll cut 30% after few months after, with your #1 product, that is supposedly selling so well.

    The market IS very competitive in the mobile phone industry. iPhone can not be a true player in it with this product. They need good figures and they aren't getting good enough figures, even if they're making nice profit.

    They have a fixed limit of units. They don't want to go to 2008 stating that they still have millions of units unsold. This product is supposed to be a big hit. They would rather sell them all with a smaller profit margin than have units left, making the apperance of "not-such-a-big-hit-after-all", because this will hit their image, their #1 selling point.

    The true marketplace and industry have massive production capabilities. They can afford to sell with a small profit margin because they're selling SO MUCH. And it's about the market share with the bigger players, that's why they're fighting over regions like Africa, where you aren't making so big figures.

    Apple is not yet a player, and they want to establish themselves as one, so they need to sell their storage ASAP, so they can create a hype for the next product line, which isn't going to be the sweetest thing either, because they still lack the experience and the maturity of their manufacturing processes are definitely lagging, their wasting money in it and they're not goign to get the quality in check just yet. This isn't because they suck, this is because they're new to this, even if they hired experts, they're still new to this. It takes time. So they want to keep the hype going on because it's the onl ything they have.
    In da butt.
    "Do not worry if others do not understand you. Instead worry if you do not understand others." - Confucius
    THE UNDEFEATED SUPERCITIZEN w:4 t:2 l:1 (DON'T ASK!)
    "God is dead" - Nietzsche. "Nietzsche is dead" - God.

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    • Originally posted by Kidicious

      You said yourself that Apple was price gouging. That's impossible in a competitive market.
      The market for a $600 Apple device without 3G and features like MMS is very small. In fact, it was saturated about a day afters its release.

      Hence the price cut to expand the market...
      "The issue is there are still many people out there that use religion as a crutch for bigotry and hate. Like Ben."
      Ben Kenobi: "That means I'm doing something right. "

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      • The market is competitive for old low end phones. There are no substitutes for the iphone. Not for people who prefer the iphone anyway. Every business school student can explain this to you.
        I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
        - Justice Brett Kavanaugh

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        • Originally posted by Asher

          The market for a $600 Apple device without 3G and features like MMS is very small. In fact, it was saturated about a day afters its release.

          Hence the price cut to expand the market...
          Exactly! You have it! Look what you are saying. There are no more customers who will pay $600 so they lower the price.
          I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
          - Justice Brett Kavanaugh

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          • What the **** are you talking about? No substitute for the iPhone?

            You're seriously off base here. Seriously. I'll pull authority of experience in this one. I have first hand experience in mobile phone industry, hey, and studies as well if they count.

            You're way off base. Way way way off. You clearly do not understand the technology or the mobile phone global marketplace.

            Anyone in the business can explain you this. Look, their product is inferior, they overpriced it and tried to sell it with an outrageous prices, trusting on their hype that they created. They of course sell at first becuase they have loyal customers. Now? It isnt' going to sell so much because it's overpriced, to need to cut the price so that they can sell more, even if they make less profit per unit, they need to cut the price in order to sell them all, because they have a fixed limit on the units and nothing else coming up soon.

            You earlier said that fixing the price isn't creating more demand, that it's advertising. I don't understand what kind of basic economic rules you are now referring to.
            In da butt.
            "Do not worry if others do not understand you. Instead worry if you do not understand others." - Confucius
            THE UNDEFEATED SUPERCITIZEN w:4 t:2 l:1 (DON'T ASK!)
            "God is dead" - Nietzsche. "Nietzsche is dead" - God.

            Comment


            • Originally posted by Kidicious

              Exactly! You have it! Look what you are saying. There are no more customers who will pay $600 so they lower the price.
              The problem is you just contradicted yourself again.

              Increasing demand is expanding the market.

              The problem here is a simple one: you lack the understanding of basic economics. "Demand" is defined as the quantity of people wanting a product at any given pricepoint. Have you ever seen a supply/demand graph?
              "The issue is there are still many people out there that use religion as a crutch for bigotry and hate. Like Ben."
              Ben Kenobi: "That means I'm doing something right. "

              Comment


              • Originally posted by Asher

                The problem is you just contradicted yourself again.

                Increasing demand is expanding the market.

                The problem here is a simple one: you lack the understanding of basic economics. "Demand" is defined as the quantity of people wanting a product at any given pricepoint. Have you ever see a supply/demand graph?
                Cut the crap. I have a BA in econ. You don't have the very basic understanding of the subject.

                And what is the contradiction?
                I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
                - Justice Brett Kavanaugh

                Comment


                • I don't care if you have a BA in econ. BA degrees are a dime a dozen, especially from substandard colleges. You clearly do not understand the basics.

                  Which college did you get it from? Remind me to write a letter to the dean.
                  "The issue is there are still many people out there that use religion as a crutch for bigotry and hate. Like Ben."
                  Ben Kenobi: "That means I'm doing something right. "

                  Comment


                  • What is the contradiction?
                    I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
                    - Justice Brett Kavanaugh

                    Comment


                    • You said demand has not changed. Yet, by the nature of expanding the market, you are increasing demand.
                      "The issue is there are still many people out there that use religion as a crutch for bigotry and hate. Like Ben."
                      Ben Kenobi: "That means I'm doing something right. "

                      Comment


                      • Originally posted by Asher
                        You said demand has not changed. Yet, by the nature of expanding the market, you are increasing demand.
                        A change in demand is a shift in the demand curve not a movement along it, as in a price change.
                        I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
                        - Justice Brett Kavanaugh

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                        • Originally posted by Pekka
                          Also, you have to factor in that they manufactured 10 million units
                          source?

                          my understanding is that they PLAN to sell 10 mil units by end of 2008

                          it's a bit obvious that just because they plan to sell this number of units doesnt that they have manufactured them already
                          Co-Founder, Apolyton Civilization Site
                          Co-Owner/Webmaster, Top40-Charts.com | CTO, Apogee Information Systems
                          giannopoulos.info: my non-mobile non-photo news & articles blog

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                          • Originally posted by Kidicious
                            A change in demand is a shift in the demand curve not a movement along it, as in a price change.
                            So when you move the curve to create more demand, is this done via a price cut or advertising, as per your original comment?

                            You're slowly changing your story...
                            "The issue is there are still many people out there that use religion as a crutch for bigotry and hate. Like Ben."
                            Ben Kenobi: "That means I'm doing something right. "

                            Comment


                            • Originally posted by Asher
                              I don't care if you have a BA in econ. BA degrees are a dime a dozen, especially from substandard colleges. You clearly do not understand the basics.

                              Which college did you get it from? Remind me to write a letter to the dean.
                              Now I know why the past few weeks this place was actually a nice place
                              "Ceterum censeo Ben esse expellendum."

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                              • Originally posted by Asher


                                So when you move the curve to create more demand, is this done via a price cut or advertising, as per your original comment?

                                You're slowly changing your story...
                                No, you don't create demand by cutting the price. That's what I said. There's no more, or little demand, at the higher price when it's time to lower the price, but that doesn't mean that the demand at the lower price has changed.
                                I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
                                - Justice Brett Kavanaugh

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