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you mean a hardware vendor like Apple not allowing mobile carriers to set any price for its own handsets? why exactly is this bad?
by pinaceae 13y ago
you mean a hardware vendor like Apple not allowing mobile carriers to set any price for its own handsets? why exactly is this bad?
- vidarh 13y agoBecause it drastically limits competition that would otherwise put a downwards pressure on the price of these devices.
- thedrbrian 13y agoSurely android phones put downward pressure on these devices?
- cbhl 13y agoThe idea is that putting a lower price floor on iOS devices differentiates them as a premium product, so that lay people aren't inclined to think that an Android Phone with a lower price is "as good as" an iPhone.
- keerthiko 13y agoI believe the understanding is that Apple is charging the carrier directly for each handset they obtain from Apple. However for market reasons, carriers normally futz with prices at their own will. Apple is preventing this, because it's in their interest to control the market price for iProducts. Not just that, but Apple is also making demands on the price window for the plans as well thus forcefully molding the kind of demographic that could be owning an iPhone.
- pinaceae 13y agoand again, why is this bad? marketing 101, price shapes the perceived value of a product. lots of examples here on HN were elasticity, etc have been discussed. locking down re-sellers should be perfectly fine.
- hahainternet 13y agoIt's bad because it's anti consumer. People in the US seem to have forgotten the fact that the whole capitalist system ostensibly exists to make things better for the consumer. I cannot understand people who champion anticompetitive actions like Apple's ebook conspiracy with stupid logic like "They can afford an extra dollar for an ebook if it makes the market fair".
- spiralpolitik 13y agoReally ? I though that capitalism was an economic system in which trade, industry and the means of production are controlled by private owners with the goal of making profits in a market economy. Clearly I need to phone up the Oxford dictionary as they say nothing about the consumer or market fairness so they must have gotten it wrong all these years...
- icebraining 13y agoThat's highly subjective. I'd claim that by being allowed to lower prices, the carriers will probably sell more iPads, putting more people in the hands of an abusive company like Apple.
- dragonwriter 13y agoThat's probably the short-term effect, however, a potential longer-term effect is hurting the iPad brand image as an elite product and status symbol, depressing demand for the particular brand. Another potential effect is less outlets selling the iPad, because if there is the potential for others to undercut the price on the same product, it becomes less valuable item in the lineup. Another potential effect is less sales through Apple's own retail channels if some other outlets are selling below Apple's price but Apple tries to maintain it, which could mean more sales but still less money going to Apple.
- icebraining 13y agoSo existing customers will have their possessions depreciated and new costumers will have less places where to buy iPads.