aryayush
Aspiring Novelist
Oh really? Makes a load of sense.gx_saurav said:1st Apple makes there die hard fans buy iPhone for $600. Approx $300 more then the original production price, meaning they were making 100% profit per unit, thats even more then what pepsi makes
Then they reduce the cost to $400, making fools of all early adapters. $200 in 2 months, thats the fastest price cut ever...this means that Apple was already making lots of profit on $600 iPhone & they are still making with $400, about $100.
Now Apple is giving $100 Gift Coupon which u can only use to buy stuff from Apple store.....
Lolz...who is benefiting here? Apple or the customer.....even if we buy a Microsoft keyboard from Apple store, who is getting the profit? Microsoft or Apple.
If people use this to buy "Upgrade to Leopard", still Apple is making profit & well, they will then say "Leopard sold XXXXX copies" counting this upgrade packages too
My sister bought a Nokia N90 a few days after it was released for Rs. 32,000. After one and a half month, the price fell to Rs. 24,000. That's $197 in approximately two months. She cried, cursed, shouted, complained at Nokia stores (while I made fun of her for buying such a crap phone!)... no $100 store credit or an online apology from the CEO of Nokia for her.
Apple only looked bad because they have set high standards for themselves. We expect Apple to be better than other companies. Nokia does something wrong, no one blinks an eyelid. We are used to crap. Apple does something, the whole world goes insane. Because we expect better from them and by this letter and $100 store credit, Apple has proved, yet again, that they deserve that kind of devotion.
This is the last I'm speaking on this subject. No point banging my head against a wall.
I know I said that was the end of it but I just came across this article on Apple Matters and couldn't resist post it here:
To the point and accurate.The first thing we need to understand is Apple’s pricing. Apple, and in fact the great majority of businesses, don’t price products based on the cost of producing said product.
This is plainly apparent when looking at the cost of MacBooks. The black MacBook commands a $150 premium over the equivalent white MacBook for no other reason than people prefer, and will pay more money for, a black colored MacBook. For some that is a reason to be outraged, the black MacBook and white MacBook perform exactly the same, why would Apple charge a premium for nothing more than an added dash of carbon black in the plastic manufacturing process? These people clearly don’t understand how businesses price products.
The easy thing to think that business prices follow some simplistic formula. If it costs Apple a $1000 dollars to build a computer they should reasonably charge $1500 for said machine. A moment’s reflection is all it takes to convince one that the notion of a cost plus profit pricing scheme is not only simplistic it also isn’t good business.
Imagine you manufacture oven windows. Due to a radical breakthrough you can produce an oven window for $1. Your competitors charge $50 for an oven window. The industry (imagine) requires a million oven windows a year. Where will you price your new oven window? The naive answer is that you’ll charge $1.50 per window. Congrats, you’ve just screwed yourself out of $45,000,000 or so. You would, in fact, charge just slightly less than $50. By pricing your oven slightly below the competition ($47.50) you’ll sell a million windows and rake in $47.5 million. Price your window at $1.50 and you’ll sell a million windows and bring in $1.5 million. The simplistic illustration is an example of profit maximization, businesses don’t try to charge enough to “get by” they charge as much as the consumers are willing to pay. Apple is no different, the company charges what research indicates consumers are willing to pay. You can get angry about the amount they charge but Apple isn’t in the game to make you feel good.
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