Share what you know with millions of people
Focus is the best place to turn what you know into remarkable content
0
How much more would you pay for your iPhone 4?
An article in today’s NY Times described the rising costs of labor in the Chinese electronics manufacturing industry. Increased labor costs (caused by worker shortages & unrest), a stronger currency, inflation, and increasing housing costs are all, “threatening to sharply increase the cost of making devices like notebook computers, digital cameras, and smartphones.” (Article: http://www.nytimes.com/2010/07/06/technology/06iphone.html?src=me&ref;=technology)
Would you be willing to pay more for your electronics devices so long as it means the laborers can earn a salary competitive to their rising cost of living, or do you think these costs should be absorbed by the corporate vendors forcing them to take a smaller margin of profit home? What do you think? Apple is in a position where they can afford to absorb some of these costs, but manufacturers known for having more inexpensive products (Dell, HP, etc.) may have a more difficult time. What do you think they will do?
Events
- Dos and Don'ts of Small Business Marketing May 29 @ 11 am PT
- Lead Nurturing 202: The Next Generation May 31 @ 11 am PT
- The Tricks to Paid Media June 6 @ 11 am PT
- Display Advertising for Brand Awareness June 20 @ 11 am PT
Related Activity
2 Answers
I think Apple will have difficulty maintaining its high prices as the market moves forward. A few year ago, the iPhone offered individuals a unique experience. Individuals were willing and able to pay a bit extra. Since then, other vendors have been mimicking its features. In addition, there are too many vendors making smartphones and many are pricing their systems below Apple's prices. That will only continue. We have already seen Palm experience problems and Microsoft's Windows Mobile systems are losing their lustre. Competitors will continue to chop prices in order to gain market share as the market enters its next phase. At some point, Apple will need to respond.
My feelings can best be summarized with the following video:
http://www.youtube.com/watch?v=FL7yD-0pqZg&feature=player_embedded
And, to answer your question, I think Apple should come down off their high horse. They offer unique products, but they used to be far more unique in the market than they have become. As Paul said, other competitors in the market are coming out with their own 'cool features.' It's becoming less and less 'worth it,' all things considered.
Also, in terms of outsourced labor and [basic civil rights], I would absolutely be willing to pay more for a smartphone to account for this. However, my money won't be going towards the iPhone...
Answer This Question