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Why is the iPhone 4 so expensive? Watch

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    The Samsung Galaxy S has almost EXACT features/functionality to the iPhone 4, yet it's three hundred dollars cheaper!! (I say dollars since I checked a US website for the price).

    How do Jobs and co. get away with this? :confused:
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    because people buy it
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    It's Apple, so people want it.
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    The galaxy s isnt much cheaper to buy offline in the UK. It is about £500 quid, a similar price to the iphone4.

    However the galaxy s actually costs more in parts and compenents due to its better hardware (processor, graphics chip, super-amoled screen, better front facing camera etc).

    However build costs are the same because apple source their compents from cheap third parties which ramps the cost up (screen made by budget brand LG, processer made by samsung, graphics chip samsung's older chip etc, built in third party factories in china, samsung build their phones in house themselves)

    The main reason for the price difference is that apple take a bigger profit.
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    http://daringfireball.net/2010/12/emotional_rescue

    Should answer most questions fairly well.
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    because its a good phone and people are prepared to pay stupid prices for it
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    Well it only costs about 120 pouinds to make so likely R&D costs
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    Because it's a fashion item, and people buy it with no regards towards the actual technology inside it, and what it is really worth.
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    (Original post by markuk99)
    The galaxy s isnt much cheaper to buy offline in the UK. It is about £500 quid, a similar price to the iphone4.

    However the galaxy s actually costs more in parts and compenents due to its better hardware (processor, graphics chip, super-amoled screen, better front facing camera etc).

    However build costs are the same because apple source their compents from cheap third parties which ramps the cost up (screen made by budget brand LG, processer made by samsung, graphics chip samsung's older chip etc, built in third party factories in china, samsung build their phones in house themselves)

    The main reason for the price difference is that apple take a bigger profit.
    Using iSuppli, which won't be exact, but will more than suffice, the Galaxy S only weighs in $20 more expensive than the iPhone 4 - on a cost basis.
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    ^^ One interesting consideration with the above is that samsung build its phones in-house, making the best processors and screens on the global market. The processor is built by samsung, the graphics chip is, the super amoled screen, etc etc. Not having to source these from third parties means build cost can be kept low despite actual value of components being significantly higher.

    For example, the 1ghz hummingbird processor and top end graphics chip in the galaxy s is made my samsung, and at cost price in its phones will probably cost less than the underclocked 1ghz hummingbird processor and mid-range graphics chip in the iphone4 which is also made by samsung, because samsung will sell it to apple and make a profit. Apple then pass this cost on to the user.
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    As already said, the iPhone isn't actually that much more expensive than other high end smartphones.
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    Because it has a shiny Apple logo on the back. *gazes lovingly at iPhone4*
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    It has a shiny apple on the back. Duh.






    Android ftw
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    The iPhone is a positional good. That is ultimately what allows Apple to sell it at a high price.

    I may get negged for this, but personally I would like them to increase the price to make it more exclusive. I buy it because the user experience is unparalleled on a mobile platform, but I hope Apple realise that the iPhone is potentially a Veblen good, and this strategy (over gaining maximum market share) may prove more stable and profitable for them in the long run.
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    I don't know if this is technically true or not, but certainly in my eyes and in a lot of others', you would be hard-pressed to find a better phone than the iPhone, in particular the iPhone 4 :yep:


    no need for the neg's, it's only an opinion. i know many people disagree and i can see why, haha. it's just there's a lot of hype for the iPhone.
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    Because this way people at Apple can get another SUV at Christmas. Apple used to be way ahead of the competitors, but it's not so anymore. Samsung Galaxy is a HELLUVA phone and less expensive. Should I choose between the two, no doubt whatsoever.
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    (Original post by dshadow)
    Because this way people at Apple can get another SUV at Christmas. Apple used to be way ahead of the competitors, but it's not so anymore. Samsung Galaxy is a HELLUVA phone and less expensive. Should I choose between the two, no doubt whatsoever.
    On a technical basis, without doubt. However when was the last time Apple sold anything based on raw technical specifications?

    It's why Apple is the 2nd/3rd largest company (by market cap.) on the planet despite having a relatively small array of products. 99% of the population don't care about the number of triangles their graphics card can draw or how many cores their computer has.

    Apple can charge what they want, because they sell an experience, not tech. specs. When you sell technical specifications, if it's not as good as it's nearest competitor, you can't charge more. Something completely unquantifiable as 'ease of use' allows Apple to put the price where ever they want.
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    (Original post by NothingOnYou)
    On a technical basis, without doubt. However when was the last time Apple sold anything based on raw technical specifications?

    It's why Apple is the 2nd/3rd largest company (by market cap.) on the planet despite having a relatively small array of products. 99% of the population don't care about the number of triangles their graphics card can draw or how many cores their computer has.

    Apple can charge what they want, because they sell an experience, not tech. specs. When you sell technical specifications, if it's not as good as it's nearest competitor, you can't charge more. Something completely unquantifiable as 'ease of use' allows Apple to put the price where ever they want.
    Sad but true.
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    Regarding the Galaxy S, it is cheaper now. But when it was released it was around the same price as the iPhone 4.
    If the iPhone was made by anyone else, the price would have come down a fair bit. But as apple don't have anything better than the iPhone 4 coming out until June, theres no reason for them to drop the price.
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    Your paying for a brand name, a name that everyone has. Apple was just the first to take all other companies technology and put it into one phone.
 
 
 
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