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Links: ·The ATM FAQ (Kool-Aid time) ·Mac Tweaks ·For New Mac Users ·The Permanent Greeting ·RC5
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haroldo

join:2004-01-16
united state
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reply to BellBoy

Re: [iPhone] Do you think the iPhone is a good "value"

said by BellBoy:

I didn't vote and here's why...

It's a TOTALLY subjective question. ...

So again...your question's poll results are completely in the eyes of the beholders if you will...

thats the whole point of the exercise. Poll was a response to a person who said "it's (presumably Apple products) no longer a value" (sic), and I argued that it is, since each person has their own value set, where they determine which goods and services are worthy of trade for their currency.
I further argued that the outstanding degree of marketplace acceptance is an indication that many consumers consider it a good value (IMHO)


haroldo

join:2004-01-16
united state
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1 edit

reply to Alcohol

said by Alcohol:

said by Metatron2008:

It cost them $200 to make

No it doesn't.

And even if it did. Supplies aren't the only thing you need to cover.

Labor
R&D
Marketing
Shipping costs

uh...you forgot taxes (remember, they are a California based company), employee health care costs (which, if I had to guess are going to be rising), litigation (for example, some knuckleheads are setting up a class action lawsuit complaining that Siri doesn't understand them, contrary to the advertising claims....jackpot justice could yield a massive payday for the lawyers and claimants)
They also need currency to attract and keep the best and brightest minds to create the next generation of products. If Apple were to sell units at "cost plus", the share price would plummet (even further!)...many/all employees stock and stock options packages would be worthless. The talented would be lured to work at companies that are not foolish enough to undercut their profit margins (ever wonder why the smartest people usually end up working at the most profitable companies?)
Of course, the owners, who put up their hard earned money would like to see a return on their investment, too!


SwedishRider
Rider on the Storm
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join:2006-01-11
Connecticut
kudos:1

I remember when Jeff Bezos said there are basically two kinds of successful companies: those that work hard to make you pay the most, and those that work hard to make you pay the least, and that either strategy can work.

Apple has earned its premium price based on its past innovation. But it is clear now by way of sales numbers that the average consumer is falling out of love with iOS and turning to alternate platforms. Apple needs to innovate again to earn its premium price. If not... it will soon look way too expensive when compared with alternate market choices (Galaxy S3/4 at the top of that list at the moment). And I would bet the carriers are getting tired of the high iPhone subsidies vs their less expensive counterparts.

For me... I parted ways with Apple when they EOL'd my 4ish year old MacBook, abandoning MobileMe for iCloud, which my machine was unable to run. What was I told? "Sorry, you'll need a new machine to access those services." I'm not interested in a walled garden where I'll need to keep buying premium-priced machines to continue to access content and services I've already paid or am currently paying for. That, the high price, and the lack of customization/innovation are what make me most leary of iPhone 5. I'm still undecided... but I'm starting to lean away from Apple...



skeechan
Ai Otsukaholic
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join:2012-01-26
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Jeff Bezos should be more concerned about the kind of companies that lose a crapload of money.

Meanwhile iPhone sales appear to be doing just fine and despite all the whining had yet another record quarter, despite it being only 13 weeks instead of the usual 14.



haroldo

join:2004-01-16
united state
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reply to SwedishRider
Bezos is partially right. A successful company is one that gets every customer to pay as much as they want ... to buy your products. Every airline seat sells for a different amount...on the same flight.
If you price too low, you lose revenue as you leave ones on the table". I
f you price too high, you lose customers and sales.
Let each pay as much as they want and you win!



skeechan
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Bezos is not telling the truth. Bezos' statement should say there are two kinds of companies...those that create their own products and those that sell other people's products. Those that create and sell their own set the price for them. Those that don't have to compete with others that are selling the same item. We see this duality with the Kindle Fire...it's not the cheapest tablet around. Amazon prices it for profit maximization (where marginal cost equals marginal revenue), not at the absolute cheapest they can sell it for. Meanwhile their resale stuff is damn cheap...not because they love selling cheap stuff but because if they don't, it won't sell.

The truth is if Amazon could get away with charging more, Bezos would absolutely be doing it. But he can't. So it is like tripping and falling on your face then saying, "I meant to do that."



Mike
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reply to haroldo
I'm not sure.

iOS is very elegant however not so much in 6. It's a bit clunky.

The hardware is not very standoutish anymore. Something new and unique has to happen.
--
"If something about the human body disgusts you, complain to the manufacturer" - Lenny Bruce
What this country needs is a good five dollar plasma weapon.



SwedishRider
Rider on the Storm
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join:2006-01-11
Connecticut
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reply to skeechan

said by skeechan:

Meanwhile iPhone sales appear to be doing just fine and despite all the whining had yet another record quarter, despite it being only 13 weeks instead of the usual 14.

That misses the bigger picture. It's not about a great quarter, it's about how well they will do in the coming quarters... aka growth. Their prospects for growth are dimming as their product line stagnates and others innovate. I read somewhere that the iPhone is no longer the prized phone to own in China, which is having a profound effect on growth prospects overseas.

They're not going bankrupt, but they are not growing nearly as fast as they have over the recent past. Their product pipline (or lack thereof) will determine if they can turn that around, or if they've hit their market saturation point. Looking at market share, it's clear Android handsets are pulling away from the pack.

Apple needs to demonstrate that they still can innovate post-Jobs... and they simply have yet to do so.


not quite right
I'm not cool enough to be a Mac person

join:2001-06-23
Puyallup, WA
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reply to Mike

said by Mike:

I'm not sure

The hardware is not very standoutish anymore. Something new and unique has to happen.

I don't know about that. People are always commenting on how thin and nice my metal iPhone 5 looks compared to their scratched up glossy plastic Galaxy III. If fact it just happened again last night.
--
Not many people know this, but I happen to be quite famous...


Alcohol
Premium
join:2003-05-26
Climax, MI
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reply to skeechan

said by skeechan:

Jeff Bezos should be more concerned about the kind of companies that lose a crapload of money.

Meanwhile iPhone sales appear to be doing just fine and despite all the whining had yet another record quarter, despite it being only 13 weeks instead of the usual 14.

Profits for amazon are reinvested into the company. It's a long term strategy and it's working out nicely for amazon.
--
I found the key to success but somebody changed the lock.


skeechan
Ai Otsukaholic
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3 edits

You don't reinvest profit. Profit is the retained earnings; it is what is left AFTER spending including reinvestment (along with payouts of dividends). When you post a loss, there is no profit. Expenses and charges exceeded revenues.

Meanwhile massive losses aren't a long term strategy, just ask Pets.com.



Nezmo
The name's Bond. James Bond.
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join:2004-11-10
Coppell, TX
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reply to haroldo
I don't think Amazon has a problem. Bad example to use really.

Bezos may be a little odd, just like Jobs was but he's built and continues to build an amazing enterprise.
--
My Gallery
Formerly Nezmo



skeechan
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reply to SwedishRider
Growth has been in the insane double digits for eons. Expecting 50% year over year over year over year, is exponential growth and no company sustains it, especially as these extraordinarily high levels. But that doesn't mean that growth doesn't continue at an insane rate as it is still doing at Apple.

No one else is innovating, the market is stagnant in terms of actual innovation. They're taking the same products and making small tweaks...little bigger screen, little faster processor; nothing revolutionary.

Meanwhile Apple sold a record number of handsets, more than Samsung did in the US and they make higher margins on each.



Dominokat
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reply to haroldo
I've been an iPhone user since iPhone 4. Then 4S. Up until recently I thought it was great. I really like the "simplicity" of it.
With the success of the Samsung Galaxy 3, and the talk of the iPhone 5, I bought the 5. Although the screen is larger then its predecessors, faster CPU, etc. Honestly, I am very disappointed with the iPhone. It just seems to be getting "old" to me now.



linicx
Caveat Emptor
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join:2002-12-03
United State
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reply to haroldo
I had the iPhone 4S. I have vision issues. It was the first cellphone I ever owned with a virtual keyboard that was easy to see and use. What I didn't like was VZ insisting I had to use iTunes to use the phone. It is a $70 lie that cost an $1680 over two years. Google' spyware wasn't endearing either. What I don't like about any smart phone is the value added tax. My state and city slaps on a combined VAT of 30% before FUSA or any other taxes. iPhone cost over 3K and VZ was getting most of it.

The iPhone is a hell of a good phone, but I would not buy any phone from VZ again. PS: I've had many Samsung phones that served me well but not a smart phone because I don't want google spyware on any phone. iPhone was my one and only excursion into future phones, and it was good while it lasted. I'll stick to a flip phone until something better is released.
--
Mac: No windows, No Gates, Apple inside



SwedishRider
Rider on the Storm
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join:2006-01-11
Connecticut
kudos:1

reply to skeechan
Well, we shall see I suppose. Personally, I think Apple is at the begninings of a long, slow decline in the post-Jobs era. But as always... time will tell.



skeechan
Ai Otsukaholic
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This last quarter they sold nearly 50 million iPhones with 30% y/y growth. They did another 20 something million iPads for nearly 50% y/y growth. As that slows they're still going to get a lot of altitude before they see declines in sales numbers, if they ever see declines in sales numbers.

If there is ever a decline, it would start with hundreds of billions in the bank and hundreds of millions of unit sales per year. If there ever is a decline, you are right, it would take a long time...a VERY long time.

They would have to pull a metro to F this all up or someone else invent a phone that gives awesome BJs. A 5" screen and NFC ain't gonna do it.



haroldo

join:2004-01-16
united state
kudos:1
Reviews:
·Comcast

1 edit

reply to skeechan

said by skeechan:

.... Amazon prices it for profit maximization (where marginal cost equals marginal revenue)...

Not sure where you got your info, but they don't make any money on the Fire, they are pushing it to drive content and build their customer base. They know that once you have the Fire, you'll buy ebooks, music, etc. from them...it's almost a loss leader, but it's anything but a profit maximizer.
The newer version ekes out the smallest of profit margins »www.usatoday.com/story/tech/2012···1684863/
Marginal cost equals marginal revenue??? (Not sure what your getting at) That doesn't lead to maximization of anything.


DarkSithPro

join:2005-02-12
Tempe, AZ
kudos:1

reply to Selenia

said by Selenia:

I had a rough time with the Galaxy S, myself. Had a Captivate and it was a PoS. Seeing afterwards the issues my friends had with other Samsung Androids and even hearing it from some more honest stores, never again will I own a Samsung. Have a Pantech Burst atm as my main. Other than a buggy updater that botches the ICS update(been fine since I worked around it and fixed it), it has been a great phone with great specs that didn't break the bank. Got my eyes on the LG Optimus G as possibly my next upgrade. Maybe an HTC One X as a backup option. Both brands have a much better track record in smartphones than Samsung. Too bad Samsung is the best known and most purchased name. They make Android look bad. As I have said before, popular does not mean good.

Yep, the ATT Captivate is what I had as well. I gotta hand it to Apple for their impressive contemporary designs, using high quality parts and construction. Like Jobs said, they "don't put junk" in their products. You'd be surprised at the poor quality these new Gimmicky Android phones have. One thing you have to admire about Apple is how well their OS is optimized to reduce lag when navigating inside the OS, using less hardware. They use 512Mb of ram and it's super buttery smooth, vs an Android device that is quad core and has 1/2gb of ram and still has minor stuttering issues. Very impressive on Apples part.


joetaxpayer
I'M Here Till Thursday

join:2001-09-07
Sudbury, MA

reply to haroldo
I was paying $30/mo for my iPad service.
When I got my iPhone, I saw personal hotspot was available, and cancelled the iPad service.
So, the phone saves me $360/yr.

I had a Blackberrry for 4 years prior. No complaints on the iPhone.


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