3 ms·
Motivation and effect are different things. Whenever (simplification, all else being equal, yadda yadda) someone undercuts market incumbents with a cheaper equi
by contextfree 15y ago
Motivation and effect are different things. Whenever (simplification, all else being equal, yadda yadda) someone undercuts market incumbents with a cheaper equivalent product, it has the effect of leaving consumers with more wealth, whether or not that's the producer's motivation.
- deleted 15y ago[deleted]
- napierzaza 15y agoIt's nice that more people can afford a shiny thing now. But the iPhone has been pretty much market price for a long time now. I just don't see the touting that "poorer" people can afford a smart phone as anything other than marketing. Henry Ford brought the price of a car down to a price that people can afford. The design to do so was to sell more cars. That's what creating a market for commoditized and mass marketed products does. But the quote implies that there is some kind of huge shift of either money or power from a large company to the consumer (really poor consumers too!). It's not, it's a shift of a market from one paradigm (and a few companies) towards Google's paradigm where they make money off the back end.