Are Cell Phones over priced?

[Davo]

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).

[greenwizard88]

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.

[Mike]

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

You also get a third of the quality usually

[sanctified Veteran]

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.

[+Fahim S. MVC]

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...

[BajiRav]

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.

[Lamp0]

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?

[sanctified Veteran]

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.

[Arceles]

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.

[siah1214]

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.

[BajiRav]

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.

[Wakers]

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.

[Vandalsquad]

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.

[Wakers]

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

[n_K]

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.

[BajiRav]

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%.

[siah1214]

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.

[exotoxic]

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.

[mrp04]

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

[Davo]

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.

[Wakers]

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

That wasn't my point at all.

The point is that you can buy a computer for the same price that is capable of so much more than a smartphone, and yet they can cost the same. If you don't understand that, that's not my problem.

[+Fahim S. MVC]

That wasn't my point at all.

The point is that you can buy a computer for the same price that is capable of so much more than a smartphone, and yet they can cost the same. If you don't understand that, that's not my problem.

What exactly is a computer capable of doing that a modern day smartphone isn't?

[n_K]

What exactly is a computer capable of doing that a modern day smartphone isn't?

Crysis.

[+Fahim S. MVC]

Crysis.

Some modern day computers maybe, but I'd argue that some smartphones are packing more than enough power to give some modern day computers a good run for their money...

[Wakers]

What exactly is a computer capable of doing that a modern day smartphone isn't?

Lets see;

Proper gaming

Audio design / editing

Video design / editing

Graphic design / editing

Programming

just for a few. If you think for 30 seconds I'm sure you'll come up with more.