rsuaver said: $400 for the new iPad mini - are they insane??? No, they are not. Actually, $400 for 16GB retina is reasonable (not cheap, but reasonable). However, an extra $100 for an extra 16GB ($500 for the 32GB model) and an extra $130 on top of that ($630 for cellular 32GB model) is no longer reasonable. And yet, there will be many who are willing to pay that much for these.
Now, keeping the 16GB iPad 2 for $399 does seem excessive...
Apple prefers to have lesser demand but a higher profit margin. (Which also makes their products look like luxury items due to high prices)
The Nexus is the opposite, a lot of demand but no profit margin (on the device itself). (Google needs a LOT of people using their Chrome browser and www.google.com in order to make revenue from advertisers) (No cool effect here since anybody can get one of these)
.... what? Apple prefers lower demand? Have you seen how many people are in Apple stores nowadays? At my local mall, there's a Microsoft Store next to the Apple Store and they need free daily events (i.e. birthday parties) to make it look busy. I know you're comparing iPad to Nexus, but a lot of people have been drinking the Apple juice
xpolarx said: Apple prefers to have lesser demand but a higher profit margin. (Which also makes their products look like luxury items due to high prices)
The Nexus is the opposite, a lot of demand but no profit margin (on the device itself). (Google needs a LOT of people using their Chrome browser and www.google.com in order to make revenue from advertisers) (No cool effect here since anybody can get one of these) (my emphasis)
Sorry, but I got the Nexus 4 on day 1. Practically no one was able to get one of those for months, and I was über-cool for quite a while . Apple stuff has not been cool for a couple of years now, since practically anyone, his mother and grandmother can get those (and many millions do). I know it is subjective, but the Nexus 4 looks much more high-end than the iPhone 5c, Samsung Galaxy [all of them] and arguably better than HTC One and iPhone 4, 4s, 5 & 5s. In fact, it looks much better than the leaked Nexus 5.
Apple does not prefer to have lesser demand - they prefer to have high demand for the expensive devices.
I'm not saying Apple is better than Google or vice versa. However, most Apple products are much more expensive than the other products they compete with. They can do this because they built an image around the brand that says "cool and exclusive" for a lot of people. This idea of exclusivity is sustained by high prices (It's silly I know but that's how many people think)
Now, you have to take into account that there is "price elasticity" Economics say that the higher the price of a product then the lesser the demand. (Other factors remaining equal) So high prices mean "lesser demand" no low demand.
Basically they found a price point that yields the best profit margin per unit. (maximizing return on investment) They could lower the price, however, the increase in demand might not make up the loss in profit margin per unit.
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