Is the iPhone 5 non-contract price too low?

[anon(4698833)]

The iPhone is priced just right for Apple's product line up and current marketing plan.

Who cares what other companies are doing? That's like asking why BMW doesn't charge more for the entry level 3series when it offers some better features (or fit and finish) than a similarly priced Lexus or Infiniti. Who cares? People are buying them, Apple is making scrooge mcduck sized money bin amounts of money. Apple has the iPhone priced perfectly in all facets...

 

[tbaptista]

The iPhone is priced just right for Apple's product line up and current marketing plan.

Who cares what other companies are doing? That's like asking why BMW doesn't charge more for the entry level 3series when it offers some better features (or fit and finish) than a similarly priced Lexus or Infiniti. Who cares? People are buying them, Apple is making scrooge mcduck sized money bin amounts of money. Apple has the iPhone priced perfectly in all facets...

I would agree, i think the other phones on the market are a little over priced.

Similar to the tablet market. All of the competitors have to lower their tablet prices to compete with the iPad.

 

[jsntrenkler]

Wow, crazy post. Simple answer No!

 

[anon(4698833)]

I would agree, i think the other phones on the market are a little over priced.

Similar to the tablet market. All of the competitors have to lower their tablet prices to compete with the iPad.

I never said other phones were over priced...i think the Galaxy S III is priced just fine for what it is, and honestly, that's really the only other elite level phone on the level of the iPhone anyways (for now) so that's the only one people really need to relate to the iPhone. When the Nokia 920 (or whatever it's called) comes out, I'm sure it will have a similar pricing structure, and it will offer features that the iPhone doesn't have...does that make the iPhone less worthy of the price? Who cares!? If it's selling and making a good profit for the company, it's priced properly.

 

[Fausty82]

Now I'm confused. Doesn't the iPhone 5 have better components than the competing brands?

Actually there is a much larger disparity between quality/price of components in computers than is true of phones. The low end HPs and Toshibas (and virtually all Compaqs and Gateways) are purely crap... typically either older core2 duo Intel CPUs or AMD CPUs... 3-cell batteries, etc.

That said, even with phones, there are "junk" models... but the top end stuff (some Samsung and HTC) tend to use higher quality parts like Apple. And since Samsung and HTC make so many different models, they clearly have different levels in the quality of their devices.

 

[Just_Me_D]

If you create a product using "premium" components and "you" decide that you want to charge x amount of dollars without thinking of who could afford your product or without specifying a target market, you will be S.O.L. Yes, you may sell some to people who can afford it, but you will not maximize your profits. For example: Let's say you priced your product at $1,000. That price alone is already too high for a lot of people. Of course some will be able to afford it and for the sake of argument, let's say 100 people bought your product. You've made a $100,000 (I'm just using straight math). However, if you were to drop your price to $500, you're more likely to sell 10 times as much of your product. It's a no-brainer. The fact that you used premium parts will pale in comparison to the amount of profits you will be bringing in. Furthermore, you will have found the price point that would allow you to maximize your profits. Do you understand?

 

[sting7k]

The cell phone market isn't the computer market. Many factors dictate the price in each market in different ways.

The iPhone is priced right for it's market. Do you not remember when Apple tried to sell the iPhone with no subsidy and it was very expensive? That lasted barely two months before they slashed the price and enraged everyone who lined up on June 29,2007; I was one of those people. It's actually more expensive now starting at $650 but very few buy it at that price.

We could also get into the market forces of the iPhone vs. Macs. Apple sells a lot more iPhones than Macs by a very large margin. Buying components in larger quantities means lower prices. The i7 processors in the top of the line Macbooks alone cost almost as much as an iPhone.

 

[boomhower1820]

Have you completely lost your mind? You want to pay more? Seriously? The iPhone is a popular but it's not a "premium" product like their computers. It's a mainstream product that can be built to higher standards due to Apple's ability to buy components at lower prices than the competition. Price a 16GB iPhone at $300 on contract and $750 off contract and sales will fall. I need 32GB and there's no way I'm paying $400 for a cell phone on-contract. Apple is in the business of making money. In this case raising prices will make them less money. Then there is the fact they are already making more money on every sale than the competition. Their margins are huge.

It's a phone. It's not a symbol of wealth. Folks like you are why these damned stereotypes exist.

 

[GPAbsinthe]

Samsung Ultrabook Series 9 15.0" (1399$) vs. MacBook Pro 15.4" (1999$)

Intel Core i5-3317U 1.7GHz vs Intel Quad Core i7 2.3GHz w/ Turbo Boost 3.3GHz
RAM 8GB vs. 8GB
Storage 128GB SSD vs 500GB Serial ATA (Up to 1TB/SSD up to 512GB)
1X USB 2.0 + 1X USB 3.0 vs 2X USB 3.0
Res. 1600 X 900 vs 1680 X 1050
Optical Drive None vs. DVD-RW
Graphics Intel HD 4000 vs Intel HD 4000 + NVidia GeForce GT650M w/ 1GB GDDR5
Thickness/Weight 0.58"/3.63 lbs vs 0.95"/4.46 lbs

I don't see how the 600$ more doesn't bring some more value here... I don't even see how there's a more of a premium price on Apple's computers than phones. If there's a premium price, it's not so obvious, and at the end of the day the Ultrabook will cost the normal user more on a Windows license and probably on a professional startup and installation. And let's not talk about what kind of support a Samsung/Windows customer is likely to get, compared to Apple service!

 

[sting7k]

Samsung Ultrabook Series 9 15.0" (1399$) vs. MacBook Pro 15.4" (1999$)

Intel Core i5-3317U 1.7GHz vs Intel Quad Core i7 2.3GHz w/ Turbo Boost 3.3GHz
RAM 8GB vs. 8GB
Storage 128GB SSD vs 500GB Serial ATA (Up to 1TB/SSD up to 512GB)
1X USB 2.0 + 1X USB 3.0 vs 2X USB 3.0
Res. 1600 X 900 vs 1680 X 1050
Optical Drive None vs. DVD-RW
Graphics Intel HD 4000 vs Intel HD 4000 + NVidia GeForce GT650M w/ 1GB GDDR5
Thickness/Weight 0.58"/3.63 lbs vs 0.95"/4.46 lbs

I don't see how the 600$ more doesn't bring some more value here... I don't even see how there's a more of a premium price on Apple's computers than phones. If there's a premium price, it's not so obvious, and at the end of the day the Ultrabook will cost the normal user more on a Windows license and probably on a professional startup and installation. And let's not talk about what kind of support a Samsung/Windows customer is likely to get, compared to Apple service!

Dell comes out to my house...Apple makes me drive 30 minutes and then stand around 20 minutes past my supposed appointment time. At least that was my experience each time I had to get my iPhones replaced.

 

[Fausty82]

Dell comes out to my house...Apple makes me drive 30 minutes and then stand around 20 minutes past my supposed appointment time. At least that was my experience each time I had to get my iPhones replaced.

Do you expect us to believe that you make $400/hour? And for what it's worth, Apple will come out for an iMac or other non-portable device. At least that what the genius told me after I lugged my wife's iMac through the mall to the Apple store.

 

[GPAbsinthe]

Fausty, being on the iMore app I can't thank you, but thank you!

 

[GreatNeal]

The amount of facepalm I'm giving this thread is so damn high.
Quick! Someone! Let's do an ultimate face palm.
Since when Apple is a Premium product?
Have you ever owned a premium phone? I doubt you do.
For apple to be this successful, it's because of their business model that appeals to those in the middle class and above. Middle class is the one with the group which is most willing to purchase products if they are affordable. If iPhone was to be priced at 5000. Would Apple even sell more than 10 million phones?

 

[Rocket_Girl]

Everyone I think would agree that you pay a premium for Apple computers when compared to PC's. It's the old argument that you are buying a BMW instead of a Toyota for a computer.

Why isn't that the case for the phones? It seems all of the high-end phones are the same price off contract. Are we still not getting a BMW of a phone or are the other brands just really overpriced?

Us Apple fans accept that we pay a premium for their computers but why not their phones?

Maybe because they are already raking it in - and have enough of a conscience to stop where they are. It (allegedly) costs a little over $200 to make an iPhone 5, with less than a $50 range between the 16 GB to 64. This is the link I happened to pull up this time:

Improved iPhone 5 less expensive to make than iPhone 4S — Apple News, Tips and Reviews

 

[Fausty82]

Maybe because they are already raking it in - and have enough of a conscience to stop where they are. It (allegedly) costs a little over $200 to make an iPhone 5, with less than a $50 range between the 16 GB to 64. This is the link I happened to pull up this time:

Improved iPhone 5 less expensive to make than iPhone 4S — Apple News, Tips and Reviews

Those prices are strictly component costs. There's R&D, software development, engineering, manufacturing, marketing, distribution... Apple makes a tidy profit on each phone, but it does cost a bit more than the cumulative component price to create.

 

[Acelx]

So let me get this right..

The OP is trying to say that since the iPhone 5 is a "premium" headset.. it should cost me the same price as my Macbook Pro or iMac that is a full featured computer?
Or that because the iPhone 5 has better "hardware" (Which isn't true) than other headsets out there it should cost more?

Why should i pay $1,000 for a 16gb iPhone 5 off-contract? If you walk into your local best buy and seen the iPhone 5 with a $1,000 price tag would you really buy it? How many of bought a iPhone 4s on launch date from eBay for $900+ ?

I don't think your going to feel any special or any better than anyone else when buying a iPhone 5.. 9/10 high school kids have a iPhone.. i even seen a parent waiting in line for 3 hours to buy his son a 13 year old a iPhone 5. So i don't see where this sense of "Feeling like a boss" comes from

Unlike a car.. your going to feel special when you buy that BMW with 600HP over that Toyota with 300HP, your going to feel awesome knowing you drive a $90,000 car that not every single American can afford..

But does BMW match its 328i price point with its M3?.. the iPhone is the 328 and the Mac is the M3.. Why should Apple its customers double for something that isn't beter than their top of the line product

a GS3 is $600.. and with the whole Android vs iOS beef your just going to make others look elsewhere if every iPhone was priced $900+

How many Lamborghini's do you think sell a year? how many Maybachs sell a year? Think about it.. i doubt Apple would of sold 5 Million first week if the phone was priced above $900 even with how crazy fanboys are.. like i said did you buy your 4s off ebay overpriced? or did you consider buying your i5 overpriced?