apparently the iphone isn't worth your hard earned $600

[Alessandro17]

I have already expressed my feelings here:

 

http://forum.insanelymac.com/index.php?showtopic=55518

 

No way in hell I am going to spend €500/600 (when it comes to Europe) for a phone, when all I want is to talk

[Metrogirl]

I'm with Allesandro17 on this one. I don't use any of the {censored} that comes on my Motorola except the facility to make and receive calls and the occasionall SMS, so I won't be buying an iPhone.

 

Supply, demand, local market forces, design and marketing are all drivers in the final cost of something. Apple is exactly like any business, a machine for making money. There are very, very few examples of a business where the owner is wholly altruistic, and the banks drive everything. No matter how you look at it something new costs a lot to design and the price has to achieve recovery of that cost in a limited time. You can't say "We will sell 5 million over the next two years, so we can recoup the cost over that period"; not only do you not know how many you will sell (it may be a flop) but you have to cover your costs quickly to keep the money men happy. Typically prices of the original design will fall, but there will be a new version (with new development costs) hard on its heels to tempt the money out of your pocket.

 

Simple psychology says we like new, sexy and unusual toys and we'll pay more for them. If you like it and want it, buy it and quit moaning about how much you paid. If you think it's too expensive, wait and buy a second-hand one. That's what we all do with cars, isn't it?

[yoda75]

You people need to relax! Do you remember when the Razors first hit the scene? They were only about $150 less than the 4gb iphone and now they're being given away with delivered pizzas (true story)! The same thing will happen to a lesser degree with the iphone. Wait a year and they will have iphones with 3G and they will all be subsidized by AT&T. I'm predicting the iphone will hit $250 once Apple's exclusivity agreement with AT&T is up and they expand to all carriers.

 

 

[Alessandro17]

Simple psychology says we like new, sexy and unusual toys and we'll pay more for them.

 

Exactly. In an ideal world we should all behave like responsible adults and not play into their hands (but our world is far from ideal, we all know that)

[cringemaster]

it just pisses me off, cuz more $ is going into apple's pocket than the phone's hardware. ridiculous

 

Who cares? But when you look into how much all the research and development and engineering and production costs, they arent making as much as you think. They cant sell an iphone at 350, thats nearly impossible, at least right now it is. This is their first cell phone product, so alot of this money is going towards the next generation that, im hoping, will be around 100 bucks cheaper and include more advanced features. Look at the ipod when it first came out, it was what, 400 bucks? And only mac compatable with a 5 gb drive? There were other companies such as RCA and iRiver that had smaler, cheaper flash based mp3 players on sale. But the ipod still prevailed and sold well. And then the price went down and more features were added. The same will happen with the iphone. It will sell well now, and sell better later on when it gets cheaper and has more features added and refined.

 

But just because it will get cheaper and have more features doesnt mean ill be buying one

[Zealot]

Apple = overpriced ,thats a fact my friends dont try to make look like we are the ones making Apple look bad ,they charge like 25 percent more than any company making the same product with the "SAME" hardware .And offcourse its about profit because it is a bussines, but we have to acknowledge that they are overpricing everything they make ,just look the price they put on the Imac ,and that is a mid-range PC with a beautifull case ( sure i want one ) but that doesnt take the fact that Apple = overpriced , and the Iphone is not the exception of this rule.

 

PS: please dont hate me .

[EFI]

Apple = overpriced ,thats a fact my friends dont try to make look like we are the ones making Apple look bad ,they charge like 25 percent more than any company making the same product with the "SAME" hardware .

 

Ill believe that when you give me proof. Remember, they have to be the "SAME" hardware. The keyword there is "SAME". Lets see how overpriced they really are shall we?

[Zealot]

Thats just lame EFI , macs are overpriced and thats a fact , and im not saying that the other companies arent overpricing their products because they are , im talking about how much MONEY you will have to spend to build a pc that can do the same.The only thing that the pc wont do like a mac is to run OSX in a cool and soft way because obvious reasons every thing else will do it and half price thats all im saying .

 

PS: I can use colors too

 

[yoda75]

... but we have to acknowledge that they are overpricing everything they make ,just look the price they put on the Imac ,and that is a mid-range PC with a beautifull case. and the Iphone is not the exception of this rule.

 

PS: please dont hate me .

 

 

First of all I don't hate you at all my friend, I merely disagree with your statements. Secondly you have to take into account the software aspect of things too. Sure the iMac MIGHT be more than a similarly speced PC (which I doubt but I'll play along) but there is also software to consider. The bundled software is of an enormous value especially since it is very good. In my macbook which I just bought I recieved the ilife suite in addition to quicken for mac and comic life and a few other things. The iphone will not only bring you the ipod and phone calls but you are also paying for new multitouch technology, advanced OS (mini OSX), not to mention the overall upgrade costs to AT&T's recently upgraded network. Like I said before, it's a new product which like all others is expensive at first, but they will eventually come down through subsidies.

[Guest Ramm]

I've sold products for a loss solely to drive a competitor out of business...

oops...

 

In the long run, your competitor was driven out of business, so who did every one go to? You, chances are. Which means you ended up making a profit.

 

And for the sake of science, I decided to do a real comparison of the Mac Pro to hardware found on newegg.com:

 

Two QC 3.0 GHz Clovertown Xeons from Apple: $1797 more than two 2.0GHz Dual Core

Two QC 2.66 Clovertowns from NewEgg: $1680 more than two 2.0GHz Dual Core (remember, this is for two 2.66GHz, unlike Apple's two 3.0GHz)

Difference: Incomparable. Like comparing "Apples" and Oranges.

 

Puns aside, let's continue.

 

16GB of 667MHz DDR2 ECC RAM from Apple: $4500 more than 1GB

16GB of 667MHz DDR2 ECC RAM from Newegg: $2539 more than 1GB

Difference: NewEgg wins

 

Bah, what's the point. In the rest of the categories, apple loses. The real good buy here is the processor.

[EFI]

Thats just lame EFI , macs are overpriced and thats a fact , and im not saying that the other companies arent overpricing their products because they are , im talking about how much MONEY you will have to spend to build a pc that can do the same.The only thing that the pc wont do like a mac is to run OSX in a cool and soft way because obvious reasons every thing else will do it and half price thats all im saying .

 

PS: I can use colors too

 

:pirate2:

Nope....

 

1. One, you cannot compare a custom/home built PC to a Macintosh. Obviously the custom will come out cheaper...a lot cheaper. The same goes with PC's. Custom's are more cheaper than a store bought Dell, Sony, Toshiba, Acer, Hp, or any other manufacturer in ANY price range. You arent't paying for their build service...becuase you will be doing that yourself...so it WILL be cheaper. You are doing the wrong comparison to begin with my friend. Its like you are comparing a Mercedes SLK to a custom Shelby Cobra.

 

2. You still haven't provided proof that Macs are overpriced, and are just claiming that its a fact, when infact its not. The last time that I saw when Apple was overpriced ridiculously was with the G3's back in 1999, and in 2001 with G4 Tower. THOSE were overpriced. Modern Macs are very, very competitive when you make an "exact" hardware configuration, infact they come out cheaper. Check out this link for more information: http://forum.insanelymac.com/index.php?sho...c=52000&hl=

[Metrogirl]

First of all I don't hate you at all my friend, I merely disagree with your statements....

 

At last! How refreshing to see someone who understands the spirit of the forum rather then being hell-bent on fuelling a flame war. Well done and thank you!

[Rez.]

That doesn't mean it is flawed just because in the example I used it was such a dramatic difference and the iPhone won't be that dramatic.

That is exactly why it is flawed.

 

Although I would agree with this:

 

Bottom line is you have a choice, don't buy it. If it is overpriced and people don't buy it the price will drop to match the market demand.

 

Or go the way of the Newton.

 

All in all I'd be surprised if the iPhone takes over the Mobile Phone industry in the same way the iPod did the portable MP3 player industry.

[Fridgerator]

I bet the Mac OS CD only costs a buck to make. I'll add another buck for the packaging and printing of the thing. I guess Apple would have to sell their OS for $2 before you'll buy it.

 

Dont you understand that it takes money for people to research, program, invent etc. Thats where that 400 bucks profit is going. After their remake what they spent in producing the iPhone, they'll start earning money to invest in other research.

[Alessandro17]

All in all I'd be surprised if the iPhone takes over the Mobile Phone industry in the same way the iPod did the portable MP3 player industry.

 

Exactly. For the iPod there was a market gap. The iPhone is going to compete with a zillion other manufacturers (who will be there to clone the iPhone and make it even better if it becomes successful).

[EFI]

Exactly. For the iPod there was a market gap. The iPhone is going to compete with a zillion other manufacturers (who will be there to clone the iPhone and make it even better if it becomes successful).

 

While I agree that many makers will definately try to copy the physical characteristics of the iPhone, much like the amount of Razr like phones out now...I doubt that anyone will be able ot replicate the inside of the iPhone...inside meaning the operating system. Windows Mobile 6 and Symbian OS cannot even come close to OS X on the iPhone. However, that being said, there are those individuals who go for the looks and nothing more...so I guess the iPhone will be a loss there. But for the people who look past skin deep, I honestly doubt they would settle for anything less than the iPhone (provided they've seen one and played with it).

 

For me, the true "wow" factor comes from the way in which the operating system is designed, the GUI, the ease of use, etc. Physical characteristics are only secondary, albeit still important.

[solaar]

That's nothing really shocking. 55% margin on a freshly launched product is not even worth mentioning. The retail sector for certain products for instance has WAY stickier fingers, especially luxury items like perfume, watches, designer clothes etc. They slam 100% and more on their products!!

Of course always open for controversy, but look at where and how Apple market and distribute their products. Apple ads and stores are nearly without any exception ritzy and smell of burning cash...

 

The question that bugs me is why does it have to cost Apple $260 to just manufacture it in a first place. The drilldown in the article is not really conclusive but I can imagine that Apple's suppliers and subcontractors have a golden Apple in their eyes in dealing with them and thus 'adapting' their prices accordingly.

[Alessandro17]

While I agree that many makers will definately try to copy the physical characteristics of the iPhone, much like the amount of Razr like phones out now...I doubt that anyone will be able ot replicate the inside of the iPhone...inside meaning the operating system. Windows Mobile 6 and Symbian OS cannot even come close to OS X on the iPhone. However, that being said, there are those individuals who go for the looks and nothing more...so I guess the iPhone will be a loss there. But for the people who look past skin deep, I honestly doubt they would settle for anything less than the iPhone (provided they've seen one and played with it).

 

For me, the true "wow" factor comes from the way in which the operating system is designed, the GUI, the ease of use, etc. Physical characteristics are only secondary, albeit still important.

 

I don't disagree with you, but my point is: which market share is the iPhone going to have?

If I know my fellow Europeans well enough, the likely answer is: quite low here in Europe.

[yoda75]

I think that in the long run what will truly set the iphone apart from the rest is how Apple allows 3rd party apps to be developed for it. If they release a proper SDK that would bring full on apps to it then that will open the door for true greatness. Methinks the"ooh look, gestures on a multitouch screen" stage will wear off quickly without a healthy offering of apps. I mean it would be a waste to have OSX on a phone just for a handful of widgets. Just imagine mini ilife for iphone

[sandmanfvrga]

The topic starter has a point, no use in poking fun at him "not having $600 to spend" and {censored}. Geez. I think many here that just thinks it is OK for the economy to do this (over inflate stuff like the iPhone) should have some control and not buy so many high priced "things" and make manufacturers price accordingly. Yes it IS life and "the way things go" with super over inflation of stuff, BUT, for those that poked fun at the topic starter: you really are sheep. Frankly you say that if Jobs/Apple or whoever puts out said "thing" that "it is the way it is, dang you don't have the money to buy it? shut up!" . Again giving into companies for doing this is just stupid. I am getting on a cingular data plan this weekend with prepaid because I need 1) mobile email 2) mobile instant messaging. It will cost me $20 a month, and the phone is an older nokia with full qwerty keyboard my cousin will sell me for dirt cheap. Funny how the $500 and $600 can't type email out as good as qwerty phone/smartphones/pdas/blackberries. The iPhone is nice, but a rip off right now.

[jgrimes80]

To those who commented on my mentioning of intentionally selling products for a loss.

 

My point is I was WILLING to lose money to get rid of a competitor.

 

I did end up yielding reasonable gains (not industry standard) between the "new" customers and through the sale of service contracts but I didn't expect to.

 

Just because my books weren't in the red as a result, don't think that expenditure didn't cost me money. Running my business within normal operation I would have made more. I simply wasn't really willing to risk losing business to someone RIGHT across the street from me.

[dark4181]

The topic starter has a point, no use in poking fun at him "not having $600 to spend" and {censored}. Geez. I think many here that just thinks it is OK for the economy to do this (over inflate stuff like the iPhone) should have some control and not buy so many high priced "things" and make manufacturers price accordingly. Yes it IS life and "the way things go" with super over inflation of stuff, BUT, for those that poked fun at the topic starter: you really are sheep. Frankly you say that if Jobs/Apple or whoever puts out said "thing" that "it is the way it is, dang you don't have the money to buy it? shut up!" . Again giving into companies for doing this is just stupid. I am getting on a cingular data plan this weekend with prepaid because I need 1) mobile email 2) mobile instant messaging. It will cost me $20 a month, and the phone is an older nokia with full qwerty keyboard my cousin will sell me for dirt cheap. Funny how the $500 and $600 can't type email out as good as qwerty phone/smartphones/pdas/blackberries. The iPhone is nice, but a rip off right now.

 

actually, i wouldn't have a (monetary) problem buying an iphone if i wanted to go to a store right now and get one. I simply don't see it as a cost effective investment right now. perhaps in the future, it will be, like the way the ipod turned out. but, IMO, the level of technology + the list of current features don't come to the level of industry standards in some areas (mostly the 3g and phone "broadband" areas, the substandard camera, but flash mem cost ratio as well) ...put those things together and the iphone just doesn't strike me as being worth the money... especially given their history of slipping in new hardware/features every 6 months or so, while keeping the same price

 

cuz, face it, apple doesn't do price drops unless something is failing miserably

[bwhsh8r]

To those who commented on my mentioning of intentionally selling products for a loss.

 

My point is I was WILLING to lose money to get rid of a competitor.

 

I did end up yielding reasonable gains (not industry standard) between the "new" customers and through the sale of service contracts but I didn't expect to.

 

Just because my books weren't in the red as a result, don't think that expenditure didn't cost me money. Running my business within normal operation I would have made more. I simply wasn't really willing to risk losing business to someone RIGHT across the street from me.

exactly what i said :-p haha

 

 

its an allright PHONE, you guys go ohhhh shiney features

 

 

i go mediocre phone hidden behind pritty case, and an mp3 player.... i have a better phone with better service, and an ipod 30gb.... more space and better phone.... wiht abetter carrier too.... so its just so pointless.

[delish]

giggle, if you don't like that small markup price for the iPhone if those figures are correct, I take it you never ever bought any clothes or shoes.

[RTA]

I had a conversation very similar to this one with my dad the other day, only we were talking about the pharmaceutical industry. The conclusion we came to applies just as well here as it does there- Sure, they may be able to manufacture a dozen pills for a penny, but that first pill cost them millions of dollars in R&D and years of time to create. While the iPhone isn't a cure for cancer, it still cost quite a bit to create, and Apple has to make that money back before it can start making any kind of profit. An iPhone may only cost $260 to make, but like others have stated, you're not taking into account the research and development that went into it. Even at $600 a pop, it'll still take quite a few phones to recoup that. In the end, a product is only worth what someone will pay for it. And lots of people paid the price Apple asked for it, so I'd go so far as to say that it very clearly is worth your hard earned $600.