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Is Apple Abusing Its Pricing Power With IPhone 4S

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canada goose clearance Now the question is, as material costs went down, what was Apple’s rationale for keeping prices flat for its iPhones at around $600 USD without contract? Or for that matter, why didn’t the consumers complain? The simple answer is consumers are not a very conscious bunch. They liked those ubiquitous and expensive canada goose uk outlet Apple commercials. They got serviced by an ever increasing army of tech support and sales reps in those glossy Apple stores. And for most part, Apple did produce the best quality beachcottage smartphones, which out performed the competition. Apple also provided both the latest hardware and software. But all of this was until Apple released iPhone 4S on October 4, 2011. canada goose clearance

Canada Goose Parka The latest iPhone 4S, which was released after a 16 months gap amid a lot of hyperbole, is arguably the first iPhone which will sport inferior hardware specs in comaprison to its higher end Android based competition. Canada Goose Parka

canada goose store Apple’s main Canada Goose Jackets selling points for uk canada goose outlet iPhone 4S is that the new Canada Goose online device has canada goose clearance faster speed and excellent voice command capabilities. However, a deeper look would reveal that Apple intentionally avoided some of the currently “available but expensive” enhancements for its iPhone 4S. The company’s primary focus this time was to achieve extra ordinary profitability or margin, rather than providing its consumers the latest and greatest available technology, on the hardware side at least. canada goose store

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canadian goose jacket On Random Access Memory (RAM), it is fair to say that the new iPhone 4S lags other smartphones. For example, it is now the norm for high end Android based smartphones to provide 1GB of RAM. There is no clear indication whether Apple’s new iPhone 4S would provide more than 512 MB of RAM that the iPhone 4 provided. This leads to the conclusion that Apple is providing lesser memory canada goose factory sale than many of its Android based competition, at a time when memory costs went down significantly over the last 16 months. canadian goose jacket

canada goose Displays on the iPhone is another glaring example of Apple’s appetite for canada goose coats on sale outsized profit. Defying many canada goose black friday sale logic, Apple decided to keep its 2 year old retina displays intact in size and quality for the iPhone 4S. canada goose

Canada Goose sale Given that technology makes constant improvements over time in the LCD/LED business, Apple’s customers are now stuck with a 3.5 inch display Canada Goose Coats On Sale which is arguably inferior in size and quality against more advanced but available technology. For example, currently there are Android and Windows based smartphones with 4, 4.3, and 4.5 inch displays. Some of Samsung and HTC’s 2012 series smartphones will buy canada goose jacket sport 4.7 inch and even 5.3 inch displays. Besides larger size, various industry commentaries suggest Samsung’s “Super AMOLED Plus” displays are superior in image quality and power consumption. It is obvious that these newer and better technology is currently costlier than Apple’s 2 year old retina display technology to be used in iPhone 4S. Other smartphone manufacturers are providing their consumers the latest displays absorbing higher costs. This is not an issue for Apple. Canada Goose sale

Canada Goose Jackets Back in 2010 when Apple released iPhone 4, industry estimates canada goose clearance sale suggested that Apple spent around $25 USD for each of the “retina” displays at that time. Knowing the speed of price reduction in the LCD/LED display industry, it is fair to assume that the same display after 16 months probably costs atleast 20% to 30% less. Apple will Canada Goose Parka happily pocket the extra profit that will come from such cost savings. Canada Goose Jackets

Canada Goose online Let’s now focus internal storage memory. Apple’s iPhone 4S will retail for $199, $299, and $399 USD in the US with a cheap Canada Goose two year contracts, with varying amount of canada goose uk black friday internal storage. The $199 USD version comes with 16 GB cheap canada goose uk of storage, whereas the $ 399 USD version comes with 64 GB. Apple’s loyal customers pay extra $200 USD to get 48 GB of storage. Such extra storage costs less than $60 USD to buy from retail stores. However, Apple forces its customers to buy the memory pre installed, since there are no memory expansion slots in any of its products. Such memory expansion slots come standard in almost all other smartphones. Imagine the profit Apple continues to make by preventing its consumers from inserting their own storage memory. Canada Goose online

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