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Are Cell Phones over priced?


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#16 pack34

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Posted 28 November 2012 - 10:45

ok, I take back the other things I've said in this thread, I decided to check google instead of spouting without prior knowledge, and I found this article http://smartphones.w...-build-0123345/

~60% profit on phones .... yeah I'd say they're a little over priced


Engineers aren't cheap


#17 OP ACTIONpack

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Posted 28 November 2012 - 10:48

Engineers aren't cheap


Not when you can get them oversea for a third of the wage.

#18 B0mberman

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Posted 28 November 2012 - 12:19

yes

#19 Crisp

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Posted 28 November 2012 - 12:31

To answer thread question; Yes.

It's turned from an accessorie to a fashion item, so they sell for more. At the end of the day, the price you pay is for the name. Remove Apple / iPhone from the equation and your phone becomes worthless. Remove Nokia and Windows from the new 920 and no one would want it.

It's a fashion item on who owns the lastest device.

Example: People own iPad 3, apple announce new iPad a few months later and people HAVE to have it.

Welcome to the Human Race.

#20 stockwiz

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Posted 28 November 2012 - 12:47

not only are cell phones overpriced, but phone service is overpriced. I bought a new droid 2 for 120 bucks and activated it on page plus to save a lot of money. Now if there are 4-5 people who need phones a family plan would probably do just fine, but for one or two people this is much cheaper than having to buy data plans (shut my 3G off) or even texting which I have shut off, but I know that's not practical for a normal person who checks their phone every 5 minutes all day.

I guess if you use it all the time, you should pay. It is a service, after all. I never used cable, so I cancelled that. I use my internet, so I keep that, bought my own modem and got the slowest speed because 5 megabits is more than enough to download torrents with BTGUARD when I'm away at work.

Of course ipods are overpriced too, but people are into image, and will pay for image. To each their own. :) I'll keep my rockboxed clip zip with it's 64GB microsd card I just bought for 38 bucks.

#21 tsupersonic

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Posted 28 November 2012 - 14:28

You say this is as if your cell phone is going to magically stop working right after the contract ends. Who is saying you need an upgrade every year or two? Do I agree they're overpriced? Yes, but it is what it is...

#22 vetsanctified

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Posted 01 December 2012 - 19:59

Not really, hardware its not the only thing that influences price.

if you cant afford a good piece of hardware that can last for a while then work more.

#23 Wakers

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Posted 01 December 2012 - 20:46

Not really, hardware its not the only thing that influences price.

if you cant afford a good piece of hardware that can last for a while then work more.


That's a pile of crap, sorry.

It has nothing to do with how much you earn, but more to do with how much companies are ripping people off. 60% mark-up on phones? I could earn $1,000,000 and I still wouldn't hand over any money to Apple or Samsung for the top-end phone. It's just not worth anywhere near that much.

#24 typu

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Posted 01 December 2012 - 20:57

of course that stuff is overpriced. or lets say, the workers producing it are underpayed.

a company such as apple/samsung should not be able to report such unbeliviable profits. in the end they just produce entertainment goods with little real life value. the margin of profit thou is way too high.

put apple in proportion to companies like the maufacturing-industry that produce real value. its very obvious that the "cell phone"-industry is too young and has too high margins. this will turn at some point, but currently its just unreal from a financial analyst perspective.

#25 ThaCrip

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Posted 01 December 2012 - 21:00

of course cell phones are overpriced, especially the monthly fee's

in general cell phones should not exceed $50 a month. even the fancy top end phones should not be more than $60-70 TOPS for the monthly fee's instead of this $100 BS which i would never pay personally for a damn phone as i would rather just use the internet on a actual PC (or Laptop) and save the $$$ and get a cheaper phone.

but you would think for how many of them (cell phones) that are out there you could find some cheap basic phones for $30 a month (just for some basic cell phone service to make calls) which is far more reasonable especially for those out there that don't use their phones all that much which makes $40-50+ just seem all that much more robbery. but since they can't screw you and make a killing you never really see anyone cheaper than around $40+ area and that's probably considered a 'good deal'.

#26 Davo

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Posted 01 December 2012 - 21:08

This topic is just silly.

Are they overpriced? In my opinion, no. People seem to take for granted that they can talk to someone anywhere in the world, wirelessly with something that can fit in your palm. Let's not even talk about text messaging, data, etc. I'd venture to guess that the majority of cell phone users can't even grasp those concepts.

Besides that, if people could just shell out $200 for another phone each time a new one comes out, two things would happen. We'd be up to our necks in electronic waste and manufacturers would push out underdeveloped phones every week (i.e. HTC).

#27 greenwizard88

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Posted 01 December 2012 - 21:17

Let me put this in perspective for you.

The year my grandfather was born, someone invented the toggle light switch. That's the type of switch you have in your wall today. In the past 90 years we reached a point where a touchscreen phone cost some $700. Five years later, it's less than 1/2 of that price, and roughly 10x faster.

Now 4 year olds can play a DS in the car- a moving car at that- against people in Japan.

Assuming my grandfather lives to be 100, in a single lifetime we went from not having reliable light switches, to being able to talk to anyone, anytime, anywhere, and even on other planets.

Stop and think about how awesome that technology is. Really, how incredible it is. The Battle of New Orleans (1815) was faught after the war ended due to a lack of communications, and now we have real-time communications anywhere in the world, and beyond.

And $600 is too much for that? $300? Where does it end? Think about how amazing this technology is, and then think about how much value you place on it.

Supply and demand bro. If someone's willing to pay $400 for technology like this, it's worth $400. If you don't want the newest instant communications, go on eBay and get an older model for pennies. My old flip phone sells for something like $20, and let me tell you, the government would have paid $20000 for a phone "that good" in 1814.

(and for bonus points, that $20 flip phone can tether via blue-tooth)

Are they too expensive? From a traditional electronics standpoint, probably. But from a more holistic view, no, not really.

#28 Mike

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Posted 01 December 2012 - 21:18

Not when you can get them oversea for a third of the wage.


You also get a third of the quality usually

#29 vetsanctified

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Posted 01 December 2012 - 21:29

That's a pile of crap, sorry.

It has nothing to do with how much you earn, but more to do with how much companies are ripping people off. 60% mark-up on phones? I could earn $1,000,000 and I still wouldn't hand over any money to Apple or Samsung for the top-end phone. It's just not worth anywhere near that much.


Base hardware + factory expenses + worker salaries + marketing research + actual marketing + logistics = final price.

That's how it works,

Welcome to the world.

#30 Fahim S.

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Posted 01 December 2012 - 21:48

Base hardware + factory expenses + worker salaries + marketing research + actual marketing + logistics = final price.

That's how it works,

Welcome to the world.


This... plus a bunch of other expenses. For some reason people think because the parts cost $x to manufacture, then anything beyond $x is profit... not nearly that simple people...

Obviously supply/demand has an impact on price, so if you think they are too expensive, vote with your feet...



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