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Are Cell Phones over priced?


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#31 BajiRav

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Posted 01 December 2012 - 21:53

Yes, they are overpriced although that 60% markup claim is stupid. As someone has said - buy a phone when you need not when a new one comes out.


#32 Lamp0

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Posted 01 December 2012 - 22:02

Yes, they are overpriced although that 60% markup claim is stupid. As someone has said - buy a phone when you need not when a new one comes out.


right. I don't get why so many people have smart phones. I have a phone I got 5 years ago... and it was probably a view years old at the time.

I get that people need them for work or they are handy if you have a hyper active social life, but then again do you really need all that functionaility right there all the time?

#33 vetsanctified

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Posted 01 December 2012 - 22:11

right. I don't get why so many people have smart phones. I have a phone I got 5 years ago... and it was probably a view years old at the time.

I get that people need them for work or they are handy if you have a hyper active social life, but then again do you really need all that functionaility right there all the time?


Things I need for work:
  • Email
  • A plethora of messaging solutions
  • Document checking software
  • A capable web browser

None of these are available in dumb phones.

While I agree that a return to simplicity it's desirable some of use indeed need the functionality all the time.

#34 Arceles

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Posted 01 December 2012 - 22:22

I replaced my aging g1 because battery finally died (300 euro new unlocked) with a used RAZRi (180 pounds, 1 month (from release date) old unlocked), phone is incredible good quality and not even one mark of use (except the screen that got to be cleaned), original price is 350 pounds on amazon. Never spending again in new phones, they charge you even the privilege of holding them.

#35 siah1214

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Posted 01 December 2012 - 22:32

As someone else so eloquently put it, cell phones are ridiculously powerful. I have a computer that fits in my pocket with substantially more power than a computer I built several years ago... that's ridiculous. That computer cost me a few hundred dollars to build. My phone would have cost me $200 if I had bought it out of contract? Overpriced? Like hell they're overpriced. I think people are just so spoiled by how cheap technology has become.

#36 BajiRav

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Posted 01 December 2012 - 22:43

right. I don't get why so many people have smart phones. I have a phone I got 5 years ago... and it was probably a view years old at the time.

I get that people need them for work or they are handy if you have a hyper active social life, but then again do you really need all that functionaility right there all the time?

well :p I bought my current phone on day 1 of its release (2 years ago) so...
On the other hand, I need email and calendar access (work), social updates and a browser. In short, I need a smartphone but I am fine with my 2 year old Samsung Focus. I am tempted by newer phones but when I my contract runs out, I am thinking of switching to something like straighttalk.

#37 Wakers

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Posted 02 December 2012 - 10:16

Yes, they are overpriced although that 60% markup claim is stupid. As someone has said - buy a phone when you need not when a new one comes out.


Stupid? It's a fact? Did you not read the source table?

I don't really care if there's labour, reasearch etc to go into it, other electronic devices don't have a 60% markup between build and sell point, why should phones? Unless you're about to suggest that only mobiles require research, labour, design, testing and so on?

Consoles are sold at a loss initially, and then eventually there comes a point where they can break even. Computer hardware has a smallish markup. Phones? massive.

#38 Vandalsquad

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Posted 02 December 2012 - 13:35

Stupid? It's a fact? Did you not read the source table?

I don't really care if there's labour, reasearch etc to go into it, other electronic devices don't have a 60% markup between build and sell point, why should phones? Unless you're about to suggest that only mobiles require research, labour, design, testing and so on?

Consoles are sold at a loss initially, and then eventually there comes a point where they can break even. Computer hardware has a smallish markup. Phones? massive.


Consoles are entirely different, Sony and Microsoft make the money back on software sales that they licence. Where in the hell does Samsung make money back on a mobile or TV? Or bluray player?

There is literally after everything taken into consideration probably only around 30-40% profit or even less. Which is how a business operates, how people stay employed. A top of the line phone is MAX 3 days of full time work (in Australia anyway) for a toy, a toy that will last at least a year being the best of the best. Or will last 3-4 years of general use if you don't need the newest and latest thing.

$700 for a device that does so much in such a small size is nothing at all.

#39 Wakers

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Posted 02 December 2012 - 13:55

It is when you can build an entire PC for the same money, it becomes ridiculous.

#40 n_K

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Posted 02 December 2012 - 14:35

My phone is 7 years old, cost me £5. Was so cheap I decided to buy 3 of them. Single battery charge lasts approximately 2 weeks. I can make phone calls, send/receive texts and could upgrade to internet if I wanted. Was it overpriced? No, for the cost I'd say it was damn good value!

Are new smartphones overpriced? Yes. But that's how the market dictates things, more and more companies are coming to the table with mobile phones, when a new market segment starts in capitalism, the first companies in it charge it with very expensive prices to milk all the profit, slowly more and more companies join in, overall the prices drop and selection increases, when the first companies that joined find that they can't make enough profit from it they let it stagnate or pull out and jump into another new sector.

#41 BajiRav

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Posted 02 December 2012 - 15:51

Stupid? It's a fact? Did you not read the source table?

I don't really care if there's labour, reasearch etc to go into it, other electronic devices don't have a 60% markup between build and sell point, why should phones? Unless you're about to suggest that only mobiles require research, labour, design, testing and so on?

Consoles are sold at a loss initially, and then eventually there comes a point where they can break even. Computer hardware has a smallish markup. Phones? massive.

Then the source table is stupid. AFAIK Apple has the highest margins on their phones and they are between 25-30%. The average markup might be between 30-40%, remember I said there is a markup but I don't think it is as high as 60%.

#42 siah1214

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Posted 02 December 2012 - 16:59

It is when you can build an entire PC for the same money, it becomes ridiculous.

You can't fit that PC into a 4.3" package with 10 hours of battery life. You don't understand computers.

#43 exotoxic

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Posted 02 December 2012 - 17:15

The prices are set by what the consumer is willing to pay. If no one buys the <latest phone> phone then they will have no choice but to reduce the price, there are so many people who need to have the latest phone as soon as it comes out that the price will continue to creep up.

#44 mrp04

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Posted 02 December 2012 - 17:18

Same hardware as tablets but with a smaller screen and battery for twice the price? Take a guess.

#45 Davo

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Posted 02 December 2012 - 17:22

You can't fit that PC into a 4.3" package with 10 hours of battery life. You don't understand computers.


+1. You can't even stick a high end ultrabook in your pocket.



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