Intrinsic said:
Alkibiádēs said:
And they sell the Galaxy S7 for €600 in my country. What point are you trying to make exactly? Iphones are even more expensive to buy.
Also we don't know what exactly is inside the Switch and it also has a lot of technology that the Galaxy S7 doesn't have.
Are you also aware of how R & D works? It's factored into the price.
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And all this clearly shows is that you didn't read the subsequents posts before you made this post.
As I have tried to explain multiple times, the reason Phone companies can mark up their prices from $255 that it costs them to make it and sell it for $600, is because your business with them ends after you buy that phone. Consoles work differently, you business starts with them after you buy their console. More of the reason why consoles, unlike phones.... can afford to sell through at significantly lower margins or even at a loss, cause they know they will get way more than that money back through software sales and accessories over the next 1-6years of living in your pocket.
TheWPCTraveler said:
We'll all see in four weeks. I italicized what I learned today. I always thought that the cut was bigger in order to allow for a larger room for error (i.e. price drops without pissing off retailers).
The $140 estimate is all taking into account the 20% margin earlier, and if that is taken off the table, that immediately shoots up to $180. If the price of manufacturing is anywhere close to that, given the rumored specs, I'll be shocked at just how incompetent Nintendo really is at sourcing components (not learning from the Wii U says a lot).
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Thats ok, I think its a fairly common misconception of how these things work. But yh, retailers are kinda always protected though. Its really all a system that varies from the size of the retailer. There are three main forms,
- the retailer pays nothing up front and just puts in a request from the manufacturer and pays the manufacturer after its sold a certain number of items. (really big companies can do this, amazon...etc)
- wholesale controlled credit or stock with supplier credit is the system used for smaller stores. here the retailer has a credit with the manufacturer that allows them "qualify" to recieve a certain amount of stock.
- Pay outright...... this one is kinda self explanatory. You pay outright to the manufacturer for the items. This system is most easily affected by price flutuations, but the manufacturers have wasys to keep their clients happy, usually be subtracting the difference of their loss from their next order.
With the first two systems, it will make absolutely no differnce to the retailer how much the item is sold for or if its price changes or not.
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Except that's not true at all. Apple, for example, makes a lot of money from Apple App Store. A lot more than what Nintendo or Sony are making...
