Phones How does Apple do this?

[daneoni]

Really they do? A new processor when the iphone 5 is already fast enough. A new camera when the camera is one of the best if not the best. Why do you need that if you have the 5?

Better/higher res pics (for printing), better gaming (textures, rendering) or app (more threads) performance from taking advantage of the new chips.

Also refined hardware (antennagate, scratched chamfered edges etc)

Then there are those who just want the latest and greatest in tech however small the change is. Also helps that iPhones have a decent resale value to enable this constant upgrading.

 

[bmac4]

Better/higher res pics (for printing), better gaming (textures, rendering) or app (more threads) performance from taking advantage of the new chips.

Also refined hardware (antennagate, scratched chamfered edges etc)

Then there are those who just want the latest and greatest in tech however small the change is. Also helps that iPhones have a decent resale value to enable this constant upgrading.

I guess the resale value helps, but still cost a lot to upgrade just to have the latest and greatest. The only way I would upgrade is if they got a much larger battery in the iphone 5s. Other than that the iphone 5 is fine.

 

[Tinmania]

Simple there are two contract cycles. S and non-S. Releasing a phone with new everything every year is pointless because many will be stuck in contracts. Hence just refine the previous model to catch new customers until current customers can upgrade. Then rinse repeat cycle.

You really think apple makes these decisions based entirely on the US market? Sounds hard to believe to me. There is a whole world out there after-all.



Michael

 

[daneoni]

You really think apple makes these decisions based entirely on the US market? Sounds hard to believe to me. There is a whole world out there after-all.
Michael

Europe has jumped on the 24 month contract tariffs as well. US and Europe are the biggest markets (for now) and they both operate on this paradigm.

 

[bmac4]

Europe has jumped on the 24 month contract tariffs as well. US and Europe are the biggest markets (for now) and they both operate on this paradigm.

But Apple does not let carriers dictate hoe they make their phones. This is the cycle that Apple wants, and gets them the most profit. Like someone else posted before it cost less for Apple to use the same design just update the specs in S models.

 

[mib1800]

Europe has jumped on the 24 month contract tariffs as well. US and Europe are the biggest markets (for now) and they both operate on this paradigm.

But Iphone is considerably more expensive compared to high end androids in Europe on contract. Now wonder Iphone sales are being hammered in Europe. In most european countries, android is selling like above 3-to-1 ratio of iphone.

I think the only country Apple is not losing ground big time to Android is the US.

 

[mustafayasin]

software updates are the main mysterios things at this point i think. the trap for upgrading millions of iphone is to believe that a new ios firmware will bring more happiness.
they're taking our hard earned money in each year cleverly. this is called as capitalism.

 

[tech4all]

Are you serious?

There's millions of people out there. Every day people start and end their contracts. Every day people get their first smartphone.

People are going to buy the iPhone 5S. Most are newcomers or have their 2 year contracts ended. Some are just loyal Apple fans that upgrade every year.

Most don't care if the iPhone 6 will be different or the UI needs to change.

Then why buy?

 

[daneoni]

But Apple does not let carriers dictate hoe they make their phones. This is the cycle that Apple wants, and gets them the most profit. Like someone else posted before it cost less for Apple to use the same design just update the specs in S models.

They may not have a say on manufacture and decided but Apple still keeps in mind its customers are locked up in contracts.

That said i agree there is a cost saving benefit to keeping a design cycle for more than a year. But why spend money updating when customers are tied up.

But Iphone is considerably more expensive compared to high end androids in Europe on contract. Now wonder Iphone sales are being hammered in Europe. In most european countries, android is selling like above 3-to-1 ratio of iphone.

I think the only country Apple is not losing ground big time to Android is the US.

Here in the UK they're pretty much equal. £37-£41p/m for 24 months + £0-£99 for entry level flagships regardless of OEM north of £490 unlocked. GS4 is £580, HTC One is £520, BB Q10 is £580 and iPhone 5 is £530

iPhones being more expensive is largely a myth nowadays. At least at the high-end.

Then why buy?

Carriers urge them to or its a free upgrade anyway so why not.

 

[bmac4]

They may not have a say on manufacture and decided but Apple still keeps in mind its customers are locked up in contracts.

That said i agree there is a cost saving benefit to keeping a design cycle for more than a year. But why spend money updating when customers are tied up.



Here in the UK they're pretty much equal. £37-£41p/m for 24 months + £0-£99 for entry level flagships regardless of OEM or £41pm and free phone. Or north of £490 unlocked. GS4 is £580, HTC One is £520 and iPhone 5 is £530

iPhones being more expensive is largely a myth nowadays.



Carriers urge them to or its a free upgrade anyway so why not.

Apple plays by Apple rules not carriers. If they go based on what you said they would only make a phone every 2 years and customers would just upgrade in the middle of the life of the phone. Based on you saying goes people are locked into a 2 year contract why would Apple make a phone every year?

 

[daneoni]

Apple plays by Apple rules not carriers. If they go based on what you said they would only make a phone every 2 years and customers would just upgrade in the middle of the life of the phone. Based on you saying goes people are locked into a 2 year contract why would Apple make a phone every year?

People start their 2yrs lockdown and various times. I may have started in 2011 (4S) whilst my friend started in 2012 (5). We both own iPhones and Apple wants both our money again when we're free to upgrade. I get the 5S and my friend gets the 6.

Hence a phone every year.

 

[bmac4]

People start their 2yrs lockdown and various times. I may have started in 2011 (4S) whilst my friend started in 2012 (5). We both own iPhones and Apple wants both our money again when we're free to upgrade. Hence a phone every year.

So why did Apple start with the iphone then redesign it to iphone 3g from the start? Apple wants to be a world phone not every country in the world goes by 2 year contracts. You think Apple only cares about the US? I don't think so.

 

[daneoni]

So why did Apple start with the iphone then redesign it to iphone 3g from the start? Apple wants to be a world phone not every country in the world goes by 2 year contracts. You think Apple only cares about the US? I don't think so.

New product that needed refining. Not many bought the first iPhone because it was too expensive, lacked 3G (metal back a hindrance to signal) and not available everywhere. Apple was still establishing a user base and needed to attract customers.

Same scenario with the first MBA. Too expensive and unrefined. Overheated and was clunky etc.

Rev A products often undergo redesigns in the 2nd revisions. iPad followed this trend too.

 

[bmac4]

New product that needed refining. Not many bought the first iPhone because it was too expensive, lacked 3G (metal back a hindrance to signal) and not available everywhere. Apple was still establishing a user base and needed to attract customers.

Same scenario with the first MBA. Too expensive and unrefined. Overheated and was clunky etc.

Rev A products often undergo redesigns in the 2nd revisions. iPad followed this trend too.

IPad is not a good example for your argument. They make a redesign once a year. It may not be a huge difference, but once a year it is a design change. That is what I stated Apple should be doing.

 

[daneoni]

IPad is not a good example for your argument. They make a redesign once a year. It may not be a huge difference, but once a year it is a design change. That is what I stated Apple should be doing.

iPad 2 and 3 (and 4) aren't different physically. except maybe in thickness.

 

[bmac4]

iPad 2 and 3 (and 4) aren't different physically. except maybe in thickness.

So you say the iPad has not changed. Well maybe thickness was all that did change, but look at the iPad 2 to the 3. The big thing is retina display. I would call that enough to upgrade an iPad. The iPad 3, 4 were basically the same thing and came out in the same calendar year. From the rumors everyone has been tossing out we are getting another redesign this year, and it may be soon. I will say again your example is bad iPads do change each year.

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I think that what a lot of you missed in my posts is the fact about first gen of redesign iphones never get the new feature. Like the iphone 4 never got Siri. Apple knows what it is doing, and wants people to upgrade each year just like every other phone manufacturer. Apple just offers less in terms of design, and upgrades the specs. The S model always gets the features and then when the next iPhone comes out it gets whatever features it has. Unless it is something like LTE that simply can't be added.

Again Apple could careless what the carriers are doing with contacts. That is why they give carriers like At&t the options to let customers upgrade early for a $250 charge. Much cheaper than buying the phone out right, but still lets At&t get what they want.

 

[daneoni]

Snip

*shrug* We'll have to agree to disagree.

 

[ugahairydawgs]

Ok so a lot of specs were increased over the 4. My question is was that worth paying $450 for a 16gb iphone 4s on contract? I just can justify that. Do you think the 5s is going to do the same thing?

Its pretty easy to justify if you take care of your devices. I upgrade pretty much every year and after selling my old iPhone I'm generally only coming out of pocket for somewhere between $50-$75.

Generally seems worth it for me.

 

[bmac4]

Its pretty easy to justify if you take care of your devices. I upgrade pretty much every year and after selling my old iPhone I'm generally only coming out of pocket for somewhere between $50-$75.

Generally seems worth it for me.

For what? What advantage to you get by upgrading every year? The phones do not change enough to upgrade. What a waste or $80.

 

[Fernandez21]

Most people do not upgrade every year. We are the exception to the rule, you need to realize this. The phone market is much larger than you seem to realize. The smartphone penetration in the USA is just a little over 50%, which means there are over 100 million subscribers without a smartphone. Also every year Apple expands the availability of the iPhone to new carriers and new countries, that is why every year they can sell millions more, it's not that current iPhone users are upgrading, it's that they're getting new customers.

 

[ugahairydawgs]

For what? What advantage to you get by upgrading every year? The phones do not change enough to upgrade. What a waste or $80.

My first iPhone was the 3G. I got it in early 2009 off of Craigslist as a hold over to get me off the Blackberry I had at the time. When the iPhone 4 came out....it was a no brainer....upgrade.

A year later the 4S came out. Speed and camera improvements aside.....I was out of space on my i4. They released a version with 64GB and it was again a no brainer decision to upgrade.

A year later the i5 comes out. Larger screen and lighter body. For me it was again a no brainer to upgrade.

I'm not in any way saying that my views are a one size fits all and that everyone should upgrade every year. But, for me, the relatively minor expense is worth the improvements that I've gotten each year. If we get to late summer/early fall and Apple releases a 5S that has 128GB.....I'll be first in line to pre-order. By then my contract will be up for renewal on my line, so after I sell my i5 I will most likely be able to turn a profit on the transaction.

 

[bmac4]

Most people do not upgrade every year. We are the exception to the rule, you need to realize this. The phone market is much larger than you seem to realize. The smartphone penetration in the USA is just a little over 50%, which means there are over 100 million subscribers without a smartphone. Also every year Apple expands the availability of the iPhone to new carriers and new countries, that is why every year they can sell millions more, it's not that current iPhone users are upgrading, it's that they're getting new customers.

No I do realize that people like us that post on these forums are the people that buy phones all the time, but what you and many other fail to see is how Apple goes about its business. Sure there are new customers each phone release. Also new carriers get the iphone, but that does not make up most of the sales of each year. Look at what I said before. Apple uses the same body 2 times for iphone and S model, but they just ever so much change it and a feature the one before did not have and want get. This pulls die hard Apple fans back in year after year. Using the same body saves a ton of money will still charging the same price for the phone. There margins are already ridiculous. This only gives them more money.

 

[ugahairydawgs]

No I do realize that people like us that post on these forums are the people that buy phones all the time, but what you and many other fail to see is how Apple goes about its business. Sure there are new customers each phone release. Also new carriers get the iphone, but that does not make up most of the sales of each year. Look at what I said before. Apple uses the same body 2 times for iphone and S model, but they just ever so much change it and a feature the one before did not have and want get. This pulls die hard Apple fans back in year after year. Using the same body saves a ton of money will still charging the same price for the phone. There margins are already ridiculous. This only gives them more money.

Their margins are shrinking....but I'm not really sure why that's even part of the discussion. All companies exist for the sole purpose of making money by doing whatever it is they are good at. If you don't like the product they create....that's fine. But to rag on them for trying to strengthen their company is a bit hollow.

Not really sure what phone you plan on using though if you take out companies that seek to maximize profit off their product.

 

[bmac4]

I

Their margins are shrinking....but I'm not really sure why that's even part of the discussion. All companies exist for the sole purpose of making money by doing whatever it is they are good at. If you don't like the product they create....that's fine. But to rag on them for trying to strengthen their company is a bit hollow.

Not really sure what phone you plan on using though if you take out companies that seek to maximize profit off their product.

Ok so I work at a university bookstore and we have a computer store in it that sells Apple products. I am the shipping and Receiving manager and when we get a shipment from Apple they have the largest margins, and we don't make even close to what we make on other computers that we sale. We make profit on Apple stuff is smaller than any other vendor we have.

The reason I brought that into the discussion is because I am saying Apple does the yearly updates and uses the same design to save money in turn making even more money. All these other ideas of why they make an S model don't add up.

The average discount and markup most vendors have is 40%. Apple is below 10%.

 

[jrswizzle]

I

Ok so I work at a university bookstore and we have a computer store in it that sells Apple products. I am the shipping and Receiving manager and when we get a shipment from Apple they have the largest margins, and we don't make even close to what we make on other computers that we sale. We make profit on Apple stuff is smaller than any other vendor we have.

The reason I brought that into the discussion is because I am saying Apple does the yearly updates and uses the same design to save money in turn making even more money. All these other ideas of why they make an S model don't add up.

The average discount and markup most vendors have is 40%. Apple is below 10%.

That's incredibly interesting, because I worked at Best Buy and we made more on Apple products (macbooks and iMacs) than any other computer......

Also made more off iPads than other tablets.....