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That has nothing to do with how competitively they are priced. If I can make something for less money than you can and we both sell it at the same price, we are
by jonknee 14y ago
That has nothing to do with how competitively they are priced. If I can make something for less money than you can and we both sell it at the same price, we are just as competitively priced. Manufacturing cost has nothing to do with price competitiveness.
Apple uses its giant scale to literally buy up all supply of lots of components and other resources (factory output, air freight, you name it). It's tough to compete.
- Klinky 14y agoWhen you are producing a product that costs less or the same to make than other manufacturers products but you sell it for more, people are paying a premium for your product.
- jonknee 14y agoI don't agree, in my opinion you have to be priced more than similar products to count as "paying a premium". Like Monster Cable--same product but several times the price. Walk into the store and you'll see that the best phones from both Apple and Samsung cost the same amount.
- Klinky 14y agoWith phone subsidies you may be correct, though unlocked you're still paying more for the Apple product. Things like Macs and iPads do have premiums still though. Probably doesn't help my case that I highlighted the iPhone 5 which is heavily subsidized by the service provider for most people.