Apple Iphone prices..

TheOtherBloke · 14-12-2014 05:05PM #1

Okay. So apple charge €600 plus euro for their latest phone... what are your opinions? A friend of mine actually forked out this money to buy pay as you go. Are mobile phone company's charging too much? I bet the manufacturing cost it way less than the purchase price.. opinions?

Tombi! · 14-12-2014 05:09PM

Apple are overpriced. They're overpriced because they have no competition for iOS. I spent a fair bundle on an android phone recently. But to me it was worth it. I could have gotten one of the cheaper ones for about 150 but I wanted the flagship phone.

With that being said, I honestly think people who buy iPhones at the price of 600+ just because it's the "latest" model are idiots. Unless they have an active interest in it.

jimmynokia · 14-12-2014 05:12PM

I got the 6 plus and wanted to fire it off a wall,iOS is too locked down for my liking so now i sport the galaxy note edge.

Digital Solitude · 14-12-2014 05:15PM

Premium Devices with (aside from bendgate) excellent build quality. Unlike android phones they rarely just stop working for no discernable reason.

On PAYG they're an absolute rob though, bill pay they work out pretty reasonably priced.

iirc Apple have a mark up of 56% on all their devices, (can't currently source this)

Generally upgrading because its the newest one is silly in my eyes, unless you've a big interest in the devices, or actually need one.

Digital Solitude · 14-12-2014 05:20PM

The fashion statement, being compared to crap androids (I've heard people complaining about how crap their Xperia J is to an iPhone 5) add to the image of premium, which will give people another reason to spend a lot of money on them

qo2cj1dsne8y4k · 14-12-2014 05:22PM

I got the oh a 6 for christmas, bought it as payg because it actually works out cheaper than committing to a contract for x amount of years and spending double what the phones worth

Muahahaha · 14-12-2014 05:24PM

TheOtherBloke wrote: »

Okay. So apple charge €600 plus euro for their latest phone... what are your opinions? A friend of mine actually forked out this money to buy pay as you go. Are mobile phone company's charging too much? I bet the manufacturing cost it way less than the purchase price.. opinions?

According to Time it costs $200 to manufacture a iPhone 6, so I suppose that is about €160 in our money and they sell it here for €600 of which €138 is VAT at 23% so the retailer is left with €462 in their hand and it cost €160 to manufacture so I guess there is good profit margins in them, seems to be about €300 per unit before distribution costs, etc. Apple strictly control how their iPhones get distributed and have their own retail outlets in most major cities so likely earn higher margins from selling direct to the public themselves than by selling via o2, Vodafone, etc.

At the end of the day iPhones are a desirable product to many people. Within that €300 profit on each iPhone is contained the costs of Apples multi million dollar advertising and marketing campaigns which position the phone as a luxury and desirable item. U2 got €100m from Apple for their latest album. That €100m had to come from somewhere so every buyer of an iPhone 6 has basically funded U2 to some extent, whether they know it or not.

14-12-2014 05:28PM

"Why spend that money on Mercedes when you can get a Skoda that does the same thing"

Bendgate, ðŸ˜…millions of people watch a video of a guy applying as much pressure as his body will allow, (white fingers, shaking arms) to prove that a thin piece of aluminium will bend if you really try!
Morons!

kneemos · 14-12-2014 05:35PM

It would not be a premium brand if they sold it cheap,and nobody would buy it because apparently it's crap.

Digital Solitude · 14-12-2014 05:38PM

Bam Bam Mickey wrote: »

"Why spend that money on Mercedes when you can get a Skoda that does the same thing"

Bendgate, ðŸ˜…millions of people watch a video of a guy applying as much pressure as his body will allow, (white fingers, shaking arms) to prove that a thin piece of aluminium will bend if you really try!
Morons!

That wasn't the only iPhone 6 that bent though, if my phone got any way misshapen through no fault of my own I'd be unhappy with the product and doubt that company afterwards. Obviously Apple weren't attempting to manufacture malleable phones, but they still did.

Your car analogy doesn't work to compare an iPhone to a flagship Android by the way.

ShadowHearth · 14-12-2014 05:38PM

Bam Bam Mickey wrote: »

"Why spend that money on Mercedes when you can get a Skoda that does the same thing"

Bendgate, ðŸ˜…millions of people watch a video of a guy applying as much pressure as his body will allow, (white fingers, shaking arms) to prove that a thin piece of aluminium will bend if you really try!
Morons!

The Problem is iPhones are not Mercedes anymore ( and for a very long time now ), they are more of a .... Opel... or Ford?

I got my Experia Z almost 2 years ago and my contract came up recently. Problem is that there is nothing to upgrade too that would actually FEEL like upgrade. I still got quad core cpu, 2gb ram, massive screen, latest android os updates. Whats the point?

The Diabolical Monocle · 14-12-2014 05:40PM

A 600 euro iphone probably is 1 maybe 2 seconds quicker in processing than my imported 100 euro android. Which Ive had for about a year now.

14-12-2014 05:41PM

LexieOnRale wrote: »

I got the oh a 6 for christmas, bought it as payg because it actually works out cheaper than committing to a contract for x amount of years and spending double what the phones worth

Pay as you go is the worst possible way to get an iPhone, it's almost full price but locked to a network. Spend a few euro more and buy it direct from Apple.

Also it's much cheaper on a number of Bill pay plans, I got it its bill pay and its costing me 200 euro less over 24 months than if I got it pay as you go and topped up enough to give me even nearly as good as contract as I have from a minutes/texts/data point of view.

Muahahaha wrote: »

According to Time it costs $200 to manufacture a iPhone 6, so I suppose that is about €160 in our money and they sell it here for €600 of which €138 is VAT at 23% so the retailer is left with €462 in their hand and it cost €160 to manufacture so I guess there is good profit margins in them, seems to be about €300 per unit before distribution costs, etc. Apple strictly control how their iPhones get distributed and have their own retail outlets in most major cities so likely earn higher margins from selling direct to the public themselves than by selling via o2, Vodafone, etc.

At the end of the day iPhones are a desirable product to many people. Within that €300 profit on each iPhone is contained the costs of Apples multi million dollar advertising and marketing campaigns which position the phone as a luxury and desirable item. U2 got €100m from Apple for their latest album. That €100m had to come from somewhere so every buyer of an iPhone 6 has basically funded U2 to some extent, whether they know it or not.

Don't forget the billions spent on R&D by Apple, people appear totally oblivious to this when thinking about sale prices.

qt3.14 · 14-12-2014 05:41PM

TheOtherBloke wrote: »

Okay. So apple charge €600 plus euro for their latest phone... what are your opinions? A friend of mine actually forked out this money to buy pay as you go. Are mobile phone company's charging too much? I bet the manufacturing cost it way less than the purchase price.. opinions?

I think it's pretty cheap. Imagine how much they'd be if everyone in the supply chain from the rare earth mines to the factories assembling them was paid a western wage?

safetyboy · 14-12-2014 05:41PM

https://oneplus.net/

/thread

TheOtherBloke · 14-12-2014 05:43PM

Isomorphism wrote: »

You can't blame Apple for the prices, companies are obliged by their shareholders to maximise profit. How many people would sell something for 400 euro say when they could get 600 euro.

Yes thats a fair point.. but if they sold each handset for 400 euro.. wouldnt they sell alot more?

14-12-2014 05:43PM

Digital Solitude wrote: »

That wasn't the only iPhone 6 that bent though, if my phone got any way misshapen through no fault of my own I'd be unhappy with the product and doubt that company afterwards. Obviously Apple weren't attempting to manufacture malleable phones, but they still did.

Your car analogy doesn't work to compare an iPhone to a flagship Android by the way.

Thanks for biting!
The hatred for a product/company that design sleek products that are outside of some peoples price range is laughable!

banquo · 14-12-2014 05:44PM

Digital Solitude wrote: »

Premium Devices with (aside from bendgate) excellent build quality. Unlike android phones they rarely just stop working for no discernable reason.

On PAYG they're an absolute rob though, bill pay they work out pretty reasonably priced.

iirc Apple have a mark up of 56% on all their devices, (can't currently source this)

Generally upgrading because its the newest one is silly in my eyes, unless you've a big interest in the devices, or actually need one.

^^Agree with the build quality. I always compare them to cars. "Sure my Renault Clio does everything I need to do." Good, that's great. Not everyone wants an S-Class Mercedes. But some people just really appreciate the superior build quality and are willing to save a bit longer to get the high-end phones.

Also, a lot of the non-iOS phones are a bit like Windows machines, in that the price is kept low through affiliate marketing. I remember getting an S5 and skipping through what felt like 400 screens of "Sign up here for 02 Money! / Get Dropbox! / other things."

Other device makers compromise on build quality to get the price down, and that's totally fair. Instead of aluminium, we'll use plastic. Instead of this kind of display, we'll use a slightly cheaper one. Apple devices are of just an incredible build quality, and you pay a high premium for it.

Fashion does play a role, but in fairness that applies to Android too.

shruikan2553 · 14-12-2014 05:46PM

banquo wrote: »

^^Agree with the build quality. I always compare them to cars. "Sure my Renault Clio does everything I need to do." Good, that's great. Not everyone wants an S-Class Mercedes. But some people just really appreciate the superior build quality and are willing to save a bit longer to get the high-end phones.

Also, a lot of the non-iOS phones are a bit like Windows machines, in that the price is kept low through affiliate marketing. I remember getting an S5 and skipping through what felt like 400 screens of "Sign up here for 02 Money! / Get Dropbox! / other things."

Other device makers compromise on build quality to get the price down, and that's totally fair. Instead of aluminium, we'll use plastic. Instead of this kind of display, we'll use a slightly cheaper one. Apple devices are of just an incredible build quality, and you pay a high premium for it.

Fashion does play a role, but in fairness that applies to Android too.

Its like a merc where the windscreen breaks if a moth hits it.

14-12-2014 05:47PM

shruikan2553 wrote: »

Its like a merc where the windscreen breaks if a moth hits it.

Oh yeah it really is.
Pffffttttt

smash · 14-12-2014 05:47PM

Come on guys, Apple bashingthreads are getting old. I have a 6plus, I got it free on my plan and I'll get a 7 for free next year. I pay €55 a month which isn't a big deal.

banquo · 14-12-2014 05:48PM

TheOtherBloke wrote: »

Yes thats a fair point.. but if they sold each handset for 400 euro.. wouldnt they sell alot more?

Probably, but they wouldn't make nearly the margins they do now. A company like Samsung has a hugely diverse product line, from phones to microwaves and screwdrivers. Apple make 2 laptops, 3 desktops, 2 phones and 2 tablets and iPhone is by miles the best selling of the lot.

Think of it this way: if nobody bought the latest iPhone, they would lose something in the region of 35% of their annual revenue!

Also: the consumer purchasing trend is very polarised in that the majority of sales are in the <€150 and in the <€500 range (via bill pay.) The people making mid-range phones are making almost no money, and pretty much everyone except HTC are struggling to make a profit in that market.

jimmynokia · 14-12-2014 05:48PM

Digital Solitude wrote: »

Premium Devices with (aside from bendgate) excellent build quality. Unlike android phones they rarely just stop working for no discernable reason.

On PAYG they're an absolute rob though, bill pay they work out pretty reasonably priced.

iirc Apple have a mark up of 56% on all their devices, (can't currently source this)

Generally upgrading because its the newest one is silly in my eyes, unless you've a big interest in the devices, or actually need one.

Really. Work out the monthly cost times 24 and up front payment say if you are on a 20 euro PAYG plan.

Awkward Badger · 14-12-2014 05:50PM

smash wrote: »

Come on guys, Apple bashingthreads are getting old. I have a 6plus, I got it free on my plan and I'll get a 7 for free next year. I pay €55 a month which isn't a big deal.

To be fair the OP is questioning why people fork out the likes of 600 cash for them. Not why people chose them when getting a free phone on their bill plan.

hidinginthebush · 14-12-2014 05:50PM

I think it's funny and pretty ridiculous to see Android and Apple fanboys argue with each other over which device is better. It's like me saying my Adidas trainers are better than your Nikes, my burger king was nicer than your mcdonnalds, my xbox one is better than your ps4. aka nobody fucking cares.

TheOtherBloke · 14-12-2014 05:51PM

banquo wrote: »

^^Agree with the build quality. I always compare them to cars. "Sure my Renault Clio does everything I need to do." Good, that's great. Not everyone wants an S-Class Mercedes. But some people just really appreciate the superior build quality and are willing to save a bit longer to get the high-end phones.

Also, a lot of the non-iOS phones are a bit like Windows machines, in that the price is kept low through affiliate marketing. I remember getting an S5 and skipping through what felt like 400 screens of "Sign up here for 02 Money! / Get Dropbox! / other things."

Other device makers compromise on build quality to get the price down, and that's totally fair. Instead of aluminium, we'll use plastic. Instead of this kind of display, we'll use a slightly cheaper one. Apple devices are of just an incredible build quality, and you pay a high premium for it.

Fashion does play a role, but in fairness that applies to Android too.

Ill happily agree with apples build quality. The last apple phone I had was the 4s and I loved the feel of it.. but you cant customise them in terms of software, apps ect as much as an android. And I think people will spend alot to buy the latest iphone because of fashion.. thats why people are buying the 'goophone I6' its identical to an iphone 6 but a fraction of the price. So people will believe they own a genuine iphone

kneemos · 14-12-2014 05:52PM

TheOtherBloke wrote: »

Yes thats a fair point.. but if they sold each handset for 400 euro.. wouldnt they sell alot more?

People buy them because they're expensive. It's their best marketing tool.
like those jeans whose name I can't remember that sell for two hundred quid,if they sold them for seventy quid they would just be another pair of jeans .

Digital Solitude · 14-12-2014 05:54PM

banquo wrote: »

^^Agree with the build quality. I always compare them to cars. "Sure my Renault Clio does everything I need to do." Good, that's great. Not everyone wants an S-Class Mercedes. But some people just really appreciate the superior build quality and are willing to save a bit longer to get the high-end phones.

Also, a lot of the non-iOS phones are a bit like Windows machines, in that the price is kept low through affiliate marketing. I remember getting an S5 and skipping through what felt like 400 screens of "Sign up here for 02 Money! / Get Dropbox! / other things."

Other device makers compromise on build quality to get the price down, and that's totally fair. Instead of aluminium, we'll use plastic. Instead of this kind of display, we'll use a slightly cheaper one. Apple devices are of just an incredible build quality, and you pay a high premium for it.

Fashion does play a role, but in fairness that applies to Android too.

I think that comparing a Clio to a Droid and an S Class to an iPhone is very far fetched in fairness. But yeah, in the majority of cases Apples build quality is superior to androids. I think you're comparing them to Low to Mid range Androids though, but without vetted interest in Android that's probably fair enough, its the poorer phones android is usually slated upon, as there are a lot more sold.

Fashion is applicable to Android, but aside from the rare aluminium phone the majority are just black or white plastic so the fashion aspect doesn't hold true as much as the aluminium or glass casing of iPhones.

I'll happily slate Samsung phones with you though!

everdead.ie · 14-12-2014 05:54PM

TheOtherBloke wrote: »

Yes thats a fair point.. but if they sold each handset for 400 euro.. wouldnt they sell alot more?

They would need to sell 3 times the amount to make the same profit margins going by the 300 unit cost another poster mentioned.

If they sold that many it would definetly lose its value as a fashionable/exclusive product.

Think if it like how Ferrari control production so they don't sell to many cars and devalue the cars.

TheOtherBloke · 14-12-2014 05:55PM

smash wrote: »

Come on guys, Apple bashingthreads are getting old. I have a 6plus, I got it free on my plan and I'll get a 7 for free next year. I pay €55 a month which isn't a big deal.

Im not 'apple bashing'. I chose apple as an example because they seem to be in the highest price range. I just dont understand why they charge so much and people can be drawn so easily to pay so much money for a product..

banquo · 14-12-2014 05:58PM

TheOtherBloke wrote: »

Ill happily agree with apples build quality. The last apple phone I had was the 4s and I loved the feel of it.. but you cant customise them in terms of software, apps ect as much as an android. And I think people will spend alot to buy the latest iphone because of fashion.. thats why people are buying the 'goophone I6' its identical to an iphone 6 but a fraction of the price. So people will believe they own a genuine iphone

I'd agree with that to a certain extent. I'm not sure it's the primary reason. I'd say a huge amount of sales of the latest are via billpay from non-techie people who had an iPhone before, are comfortable with iOS and have an upgrade opportunity.

The different in price is down half to affiliate marketing (Dropbox (example) give Samsung (example) a few €€€ towards the retail price of every phone they sell hoping people will sign up to Dropbox) and half the premium tax.

Also worth mentioning that high end smartphones are super expensive to make, pretty much only Apple and HTC actually make any money, the margins on the rest are almost non-existent.

Harder thing for Apple to maintain in the long run – they'll always have to produce a superior feeling phone, and control public image so they appear as the flagship device. And they've locked themselves into this annual summer release schedule. No pressure lads...

Working in their favour at the moment is the fragmentation of other devices – Android OEMs are reliant on Google continuing to produce new versions of Android, and they don't know how it's going to turn out until Google release it, so they can't be building their phones simultaneously as Apple do. So they'll always be 6 months to a year behind the OS they run on, which gives Apple lots of breathing space to be first to market with new features / selling points.

Apple Iphone prices..

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