There's a reason why high-end hardware like Swiss watches have traditionally come at a high price. In order for Apple to maintain its extraordinarily high margins, they have to squeeze somewhere, and it again appears to be workers in China. This goes for every other manufacturer as well although so far Apple is the only one to push this hard on quality. If consumers want this level of design and quality they have to be willing to pay for it but so far they have shown no inclination to do so and workers in China are left paying the price.
The iPhone 5’s Impossible Design Comes at a Very Real Price
When you hold the iPhone 5 it feels, frankly, unreal. It’s lighter than it has any business being, it’s thinner, it’s smoother. Regardless of how you feel about Apple, its latest phone seems too good …
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Switch to Samsung?
Switch to Samsung?
The problem is that the price is not "real" to consumers. Because every phone is $199 with contract, there is a radically skewed economy at work. I can't think of a another consumer product (except healthcare maybe) that so dramatically hides the actual cost of the end product.
The problem is that the price is not "real" to consumers. Because every phone is $199 with contract, there is a radically skewed economy at work. I can't think of a another consumer product (except healthcare maybe) that so dramatically hides the actual cost of the end product.
+Drew Payne very true, I'd rather see phones be unsubsidized with lower monthly rates. The problem in the US market at least is that the national carriers charge the same whether you are under contract or not so there is no incentive for consumers to pay full price.
+Drew Payne very true, I'd rather see phones be unsubsidized with lower monthly rates. The problem in the US market at least is that the national carriers charge the same whether you are under contract or not so there is no incentive for consumers to pay full price.