HappySqurriel said:
All the manufacturers are trying to make money, but Google's approach is different (and a little more honest IMO) than Apple's. Google and Apple both know that there isn't much of a market for phones over (about) $300 so Google prices their phone at $300 and Apple prices their phone at $800 knowing telecom companies will sell it for $300 when you enter into a contract and pay 1000% markup on their services. |
It's pretty common knowledge that Apple's profit margin on products is significantly higher than any other manufacturer. Thats why the whole law that's currently coming through meaning Apple have to disclose what % of their price is profit will be interesting.
Will people still be happy to shell out £700 for an iPhone when they find out it actually costs less to manufacture than the high end Androids that are £500? Will people finally see Apple's tactic is sell high on low spec due to a closed format? Probably not. But at least on the phone front people will finally realise that the iPhone 5 isn't superior to the high end Androids.
RIP Dad 25/11/51 - 13/12/13. You will be missed but never forgotten.
