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To those that think Apple's products are reasonably priced: Where do you think they got all this money from?
by jsonscripter 17y ago
To those that think Apple's products are reasonably priced: Where do you think they got all this money from?
- dcurtis 17y agoApple does not compete on the low end, where margins are razor thin. They own the premium computer market where margins are high.
- georgekv 17y agoPlenty of people seem to have reasoned that Apple's prices (and products) are good enough for them to pay up. What's wrong with that?
- jsonscripter 17y agoNothing's "wrong" with people think it's fair value. It's just that some people think 2000 dollars for a laptop is inexpensive. I'm just saying that Apple charges quite a premium on their products.
- TomOfTTB 17y agoSo what? Apple charges what people are willing to pay the same as just about anyone in a free market. Do you really think Dell is giving discounts out of the goodness of their heart? Or that they wouldn’t charge more if they could? So why then do you have a problem with Apple and not with Dell (or any other company)?
- jsonscripter 17y agoI love the free market! Nothing's wrong with the free market! Buy what you want, people! I'm simply saying that, in my opinion, they do not offer fair value, despite what other people say. I'm of the opinion that Apple would have to lower their price significantly before I would consider a purchase of any of their products. I'm saying that Apple's excessive extra cash comes from an extremely high premium on all their products.
- deleted 17y ago[deleted]
- onreact-com 17y agoExactly, people in the West buy iPods because they get brainwashed to do so. They may explode or Apple might lie (iPhone MMS anybody?) or kill its employees, the consumerist zombies will still blindly follow the brand. Apple is a cult not a company.
- mediaman 17y agoI don't believe you are making genuine, thoughtful statements here. Apple has made real, substantive progress in design. There was nothing like the iPhone when it was brought to market. Nothing even similar. Their aluminum notebooks use a manufacturing process that has never been used in notebook construction before, and the result is a product that feels more solid even than my Thinkpad. Their original iPods brought a simplicity of interaction (the touch scroll wheel) that had never been done before. You may find the prices they charge for their products, or elements of their business conduct, to be distasteful. That's fine, and they are valid points. But to argue that people buy iPods because they are 'brainwashed,' or are 'zombies' blindly following the brand, or that it's a 'cult not a company' is so thoughtless that it makes one believe that you are not prepared to engage in reasoned discourse because flippant comments are easier.
- onreact-com 17y ago"There was nothing like the iPhone when it was brought to market. Nothing even similar." That's not true. The iPhone is a rip off of the Linux based deeda Pi that has been developed way before the iPhone. The iPhone actually killed the open source deeda Pi project. See here: http://applephones.blogspot.com/2007/04/is-apple-iphone-copy-of-deeda-pi.html http://applephones.blogspot.com/2007/04/is-apple-iphone-copy...
- stepherm 17y agofeatures aren't everything. I'd prefer to buy a better designed tool that does less then a poorly designed tool that does more.
- grinich 17y agoGood design is expensive.
- jsonscripter 17y agoWell then Apple isn't paying their designers enough...
- inovica 17y agoStatements like this are short-sighted. Apple sells based on design, so I would say that in this instance you are incorrect (based on the number of people who like Apple kit for the design). Hacker News is a business-focused site related to programming and so whilst people might not 'like' Apple, as a company, you should learn from what they do. I have learned from watching both Apple and Microsoft right the way down to smaller companies.
- onreact-com 17y agoStolen design is cheap: http://news.ycombinator.com/item?id=763491 http://news.ycombinator.com/item?id=763491
- grinich 17y agoaddendum: not just industrial design
- access_denied 17y agoApple delivers it-just-works to me. And the price is absolutely ok for that, not a premium at all. Years ago I bought a Commodore, because the alternative was better, but priced at a premium, it was called Indigo. And I was not willing to pay the premium, too much money. The "premium" Apple wants doesn't feel like a premium at all.
- deleted 17y ago[deleted]
- karzeem 17y agoNot paying the cash out to shareholders saves Apple a lot. And I'm not the first to say this, but paying out to shareholders isn't exactly the most innovative way to use your cash. It's like saying, "We couldn't think of anything to invest this cash in that will push the business forward, so let's just write you a check."
- jonknee 17y agoAnd not using it for anything isn't super innovative either. The investors own the company, what's wrong with giving them their own profits?
- euroclydon 17y agoIt's pretty obvious that Apple continues to have a growth strategy. If you want dividends, the tobacco companies have some good ones I hear.
- sethg 17y agoIncome from dividends is taxed at a higher rate than income from capital gains. Therefore, if you're investing in a company and you're not doing it through a retirement plan or a similar tax-sheltered fund, you might rather see profits reinvested in the company and returned to you in the form of a higher stock value than simply given out to you in the form of a dividend. (I think this tax policy is... unwise, but that's a debate for another time.)
- mediaman 17y agoThe easy way around that is to repurchase stock to hold in the treasury. Returns cash to the investors through a higher stock price and eliminates the tax delta.
- borism 17y agowell, this is the big question - how will they use all this cash? having tons of cash and not using it in any way is quite stupid actually. btw, I read form Balance Sheet that cash and short term investments is 24bn. 35bn is total current assets. slight misrepresentation on reporter's side?
- jsdalton 17y agoI think they got all this money from selling lots of products at a price people were willing to pay.
- onreact-com 17y agoAnd other people to work 60h+ a week for Chinese minimum wage (a dollar a day).
- potatolicious 17y agoAre you suggesting that this is different with any other electronics manufacturer?
- onreact-com 17y agoNo, but like I pointed out in my first comment on this post Apple sells the same products for twice the amount of money: http://news.ycombinator.com/item?id=762944 http://news.ycombinator.com/item?id=762944
- joubert 17y agoThe whole is greater than the sum of its parts.
- inovica 17y agoI bought a Jaguar XK because I love the car, the attention to detail and the style. Yes, I could have bought something much cheaper, probably just as reliable (or more so!) but I chose this route as it has a sense of style. If there's anything about business that I've learned it's that there are products for every niche, be it low cost food through to high priced watches.