Comments on: Comparing Apples to Apple’s (iPhone) http://www.nicholls.edu/bastiatsbastions/2007/09/24/comparing-apples-to-apple%e2%80%99s-iphone/ What is seen and what is unseen. Fri, 19 Feb 2010 03:23:56 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Travis Verdin http://www.nicholls.edu/bastiatsbastions/2007/09/24/comparing-apples-to-apple%e2%80%99s-iphone/comment-page-1/#comment-4132 Travis Verdin Thu, 18 Oct 2007 20:08:21 +0000 http://www.nicholls.edu/bastiatsbastions/2007/09/24/comparing-apples-to-apple%e2%80%99s-iphone/#comment-4132 Mr. Gross sounds like he is upset that he was caught on the wrong side of the rebate and paid too much for his phone. To be on the cutting edge of technology you have to make certain concessions; the first of such is money. The latest cars, televisions, computers, phones, and countless other items all carry a steeper price tag if you want to be the first one using the item. If prices are lowered before you get to feel superior about using the product, then feelings of buyer’s remorse start to show up. Companies compensate this expected feeling by offerings that make the consumer feel better about their hasty decision. The same thing happens every year for Christmas with the latest “got to have it” toy and a parent’s willingness to pay. If you want to be the first to have the latest toy, it’s going to cost you. After the first initial wave of buyers, prices do come down as expected. I feel this rebate by Apple is a good move, get more people using the phone before the debut of the iphone 2.0 at Macworld 2008. At this time the same groups of techies will be lining up again to be the first with the “latest and greatest” iphone. This story by Mr. Gross seems more about embarrassment than it does about supply and demand, or needs and wants. Supply and demand should be a topic that Mr. Gross is very familiar with judging by the sales rankings of his $1.99 books at Barnes and Noble. Let’s only hope his next articles will be rooted in facts. Mr. Gross sounds like he is upset that he was caught on the wrong side of the rebate and paid too much for his phone. To be on the cutting edge of technology you have to make certain concessions; the first of such is money. The latest cars, televisions, computers, phones, and countless other items all carry a steeper price tag if you want to be the first one using the item. If prices are lowered before you get to feel superior about using the product, then feelings of buyer’s remorse start to show up. Companies compensate this expected feeling by offerings that make the consumer feel better about their hasty decision. The same thing happens every year for Christmas with the latest “got to have it” toy and a parent’s willingness to pay. If you want to be the first to have the latest toy, it’s going to cost you. After the first initial wave of buyers, prices do come down as expected. I feel this rebate by Apple is a good move, get more people using the phone before the debut of the iphone 2.0 at Macworld 2008. At this time the same groups of techies will be lining up again to be the first with the “latest and greatest” iphone. This story by Mr. Gross seems more about embarrassment than it does about supply and demand, or needs and wants. Supply and demand should be a topic that Mr. Gross is very familiar with judging by the sales rankings of his $1.99 books at Barnes and Noble. Let’s only hope his next articles will be rooted in facts.

]]> By: Jeremy Breaux http://www.nicholls.edu/bastiatsbastions/2007/09/24/comparing-apples-to-apple%e2%80%99s-iphone/comment-page-1/#comment-3559 Jeremy Breaux Thu, 04 Oct 2007 05:44:22 +0000 http://www.nicholls.edu/bastiatsbastions/2007/09/24/comparing-apples-to-apple%e2%80%99s-iphone/#comment-3559 Apple might have been better off cutting prices a little more descretly, but no matter what that doesnt change the fact that everything has price cuts. And at the the top of the price cut list is technology. Example, iPods now are very cheap compared to what they once were. Mr.Gross seems to have a big problem with the fact that they cut the price too soon after the release. I can see that they did cut the price a little too soon, most technology unique products wait untill a competitor arises and then will cut prices (Xbox/Playstation/Nintendo have been battling this out for years). Any car salesman knows just how low he can go on a product, it takes him time to find the equilibrium point with the customer. Biggest mistake is cutting off too much too soon, then the customer will want more and more of a discount. This is were apple flawed in its, "$100 refund" or whatever you wish to call it. To the average person, $100 is alot of money. Not considering the free things with it... aggrivation, Grey hair, more aggrivation, popped blood vain probably too. When the iPhone first came out, there profit margin was apparently extremly high. This would help with any long term "invetory" problems they might have later on (i would imagine Apple, of all companies, to have this production plan allready figured out though). If there accountants didnt screw things up, they probably have kept most of those extra profits for problems that occur later (such as ppl hacking the iPhone and using other providers, now solved with a program update that ruins any iphone that has been hacked). If a customer is willing to pay X amount this week and doesnt want to wait till next week, then he will pay that amount. It is not the producers fault that the customer does not want to wait. If anything, its a business plan for that exact reason. "Apple brings out an expensive new product, it might find that the lines are somewhat shorter." ...."Fool me once, shame on you. Fool me twice, shame on me" Key point though... there will still be lines. Apple might have been better off cutting prices a little more descretly, but no matter what that doesnt change the fact that everything has price cuts. And at the the top of the price cut list is technology. Example, iPods now are very cheap compared to what they once were. Mr.Gross seems to have a big problem with the fact that they cut the price too soon after the release. I can see that they did cut the price a little too soon, most technology unique products wait untill a competitor arises and then will cut prices (Xbox/Playstation/Nintendo have been battling this out for years). Any car salesman knows just how low he can go on a product, it takes him time to find the equilibrium point with the customer. Biggest mistake is cutting off too much too soon, then the customer will want more and more of a discount. This is were apple flawed in its, “$100 refund” or whatever you wish to call it. To the average person, $100 is alot of money.
Not considering the free things with it… aggrivation, Grey hair, more aggrivation, popped blood vain probably too.

When the iPhone first came out, there profit margin was apparently extremly high. This would help with any long term “invetory” problems they might have later on (i would imagine Apple, of all companies, to have this production plan allready figured out though). If there accountants didnt screw things up, they probably have kept most of those extra profits for problems that occur later (such as ppl hacking the iPhone and using other providers, now solved with a program update that ruins any iphone that has been hacked).

If a customer is willing to pay X amount this week and doesnt want to wait till next week, then he will pay that amount. It is not the producers fault that the customer does not want to wait. If anything, its a business plan for that exact reason.

“Apple brings out an expensive new product, it might find that the lines are somewhat shorter.”
….”Fool me once, shame on you. Fool me twice, shame on me”
Key point though… there will still be lines.

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