Quote:
Originally Posted by geoffwood
You're really hung up on that aren't you. It's simple supply and demand in a free market economy. People will stand in line to pay a premium price for a premium product. It's not like Apple has a monopoly, so it's not gouging any more than is the price of any other premium product. Apple hasn't engaged in the race to the bottom to grab market share grab that Android and PC makers have had to in order to compete. As a result Apple has relatively low market share, but makes a huge portion of the profits. The last numbers I saw gave Apple 6.4% of the smartphone handset market, and 71% of the profit. Hard to argue with the business model.
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Actually, I think Apple does way overcharge. Their products are not truly premium in any fashion. They have been able to brainwash Applephiles into believing they are, but they are not better products and they certainly are not worth the premium amount Apple charges for them. Their products are more artsy-fartsy than anything else, and that is a big difference from being truly premium. It takes a lot more than simply looking pretty to be considered premium. The truth is you get a lot more bang for your buck with non-Apple products. The iPhone is a prime example. They are on version 4s already and the darn thing still cannot consistently hold a call without dropping it, usually several times if it is a long call. The iPod touch is on its 4th generation, yet the darn thing bleeds out its battery charge in 2 to 3 hours. I could go on and on...