Can Anyone Provide Me With A Reason Why Apple Iphone 3g & 3gs Prices Has Fallen So Drastically ?
Saturday, February 6, 2010 2:38Apple iPhone used to be so expensive , wouldn’t they lose money this way ?
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Big Bean says:
February 6th, 2010 at 8:22 am
actually iphone 3g and iphone 3gs r subsidized by at&t or whichever carrier iphone is with outside of US. at&T is expensive cos they must pay back apple for providing iphones so cheap. thats y the price of an unlocked model is so much more, cos u r directly paying the full cost of the phone. if u actually consider the full cost of owning an iphone over 2yrs u will find that the iphone 3g is actually more expensive than iphone bcos the plan is more expensive. at the end of 2 yrs, u hv payed about $50-$100 more which is about the cost of adding the new features.
also if u studied economics, increasing the price doesnt necessarily lead to an increase in revenue. u need to look at the elasticity of demand, and then fix a price which wud maximize total revenue. dont forget at lower prices there is more demand so take for example sell 10 units at $500 (rev = 5k) or sell 30 units at $200 (rev = 6k). also the more ppl hv an iphone, the more app downloads, and more apps created which also generates revenue for apple.