iPhone Price Racketeering

Hugo_ZA said:
Ok so lets say that the Vodashop is in charge of pricing. They purchase the iPhone for X from VSP. The Vodacom stand in Incredible Connection also purchases the phone for X from VSP.

Incredible then adds their profit margin, Y, resulting in the retail price (X+Y=R6395). Surely they are not selling the phone at no profit...

Vodashop on the other hand follows the same formula (X+Y=R), yet they decide that the profit margin will be in excess of R2000 compared to that of Incredible.

This leads to the title of this thread including the word "Racketeering", as they willfully decide to rip people off for the sake of turning a higher profit. Yes, everyone is in business to make money, but at what cost?

(all formulas and purchasing channels stated above are purely speculative and do not reflect the actual process in place at either Vodashop, Incredible Connection, or VSP)
Click to expand...

Ok but then theres also different deals created for different channel stores.
ie: Dion wired is an electronics store that sells iPhones, they owned by Massmart, Massmart guys can negotiate with the SPs on their purchase price, contract deals, extra support on some handsets like big sellers or low selling phones. That could be a reason.

If Cresta is selling iPhones and the demand is high or low that could affect the price in that store and thats upto the owners discretion.

Eg Metro, how is their phone and contract prices always better than everyone elses?

Im sure if you really looked hard enough there will be someone cheaper.
 
I just got my iPhone on contract and called around for a cash price so I could add it to my insurance. It does make for interesting numbers. Looks like in Cape Town the iStore is your best bet for a cash deal.

Cellucity - Cavendish: 8GB - R7600 / 16GB - R8400
Cellucity - Canal Walk: 8GB - R7500 / 16GB - R8500
iStore - Canal Walk & V&A: 8GB - R6800 / 16GB - R7999
Vodacare (sales) - Canal Walk: 8GB - R7500 / 16GB - R8500
 
morkhans said:
I just got my iPhone on contract and called around for a cash price so I could add it to my insurance. It does make for interesting numbers. Looks like in Cape Town the iStore is your best bet for a cash deal.

Cellucity - Cavendish: 8GB - R7600 / 16GB - R8400
Cellucity - Canal Walk: 8GB - R7500 / 16GB - R8500
iStore - Canal Walk & V&A: 8GB - R6800 / 16GB - R7999
Vodacare (sales) - Canal Walk: 8GB - R7500 / 16GB - R8500
Click to expand...

I am sure there is an Incredible Connection or Dion Wired in CT. Both these outlets sell them for under R6400. Still comes in R400 cheaper than iStore.
 
Hugo_ZA said:
I am sure there is an Incredible Connection or Dion Wired in CT. Both these outlets sell them for under R6400. Still comes in R400 cheaper than iStore.
Click to expand...

Sadly no Dion Wired in CT and I don't buy anything from incredible corruption out of principal ;)
 
Also consider that one shop might have purchased their consignment of stock in November when the exchange rate was 11 and another might have purchased theirs beginning of January when the exchange rate was 9.3 and the third might have purchased their stock now when the exchange rate is hovering around 10!

If the phone costs for argument sake $700 - then the price is R6650 when the exchange rate is 9.5 and R7700 when the exchange rate is 11. (Obviously, vodaom would be buying at cost and adding a % markup which would further compund the problem)
 
broken1 said:
Also consider that one shop might have purchased their consignment of stock in November when the exchange rate was 11 and another might have purchased theirs beginning of January when the exchange rate was 9.3 and the third might have purchased their stock now when the exchange rate is hovering around 10!

If the phone costs for argument sake $700 - then the price is R6650 when the exchange rate is 9.5 and R7700 when the exchange rate is 11. (Obviously, vodaom would be buying at cost and adding a % markup which would further compund the problem)
Click to expand...

That could also be a factor!;)
 
8GB of flash memory costs in the region of R300 ... so why pay R1000 more for the 16GB version of the iPhone or iPod Touch? The price difference between the 8GB iPod Touch and the 32GB one is R2500 ... so 24GB translates into R2500 according to Apple ... instead of R900. Talk about racketeering.
 
BeVonk! said:
8GB of flash memory costs in the region of R300 ... so why pay R1000 more for the 16GB version of the iPhone or iPod Touch? The price difference between the 8GB iPod Touch and the 32GB one is R2500 ... so 24GB translates into R2500 according to Apple ... instead of R900. Talk about racketeering.
Click to expand...

I think you'll find that Apple has very little to do with local pricing.
 
JK8 said:
Maybe not entirely.

Vshops are all privately owned and these are retail prices of the phone.
Im not sure what the T&C of the franchise is, but with other franchises like Pick n Pay they are in charge of the selling prices, unless theirs a special across all stores.

So like the other poster stated go buy the cheapest!
Click to expand...
P&P do not set their own prices. They are designated store types and prices have to be consistent across stores. I imagine the 4U shops have a price just as the 3G stores do.
 
vodacom3g said:
That's my understanding.
Click to expand...

Seems quite odd considering their lack of official presence here and that they don't do that with any of their other products, but you would know better than me.

Edit: even more so when you consider what Jobs said at the keynote.
 
icyrus said:
Seems quite odd considering their lack of official presence here and that they don't do that with any of their other products, but you would know better than me.
Click to expand...

I thought they did exactly that with their other products? But I do know that they fully control the iPhone. Even down to how support must work. For example Vodacom has a standard 2-year warranty on all handsets. Except on the iPhone.....
 
vodacom3g said:
I thought they did exactly that with their other products? But I do know that they fully control the iPhone. Even down to how support must work. For example Vodacom has a standard 2-year warranty on all handsets. Except on the iPhone.....
Click to expand...

Apple sell their products at a set price to core but core are then free to charge whatever they like when those products get here. Needless to say some gouging occurs...
 
icyrus said:
Seems quite odd considering their lack of official presence here and that they don't do that with any of their other products, but you would know better than me.

Edit: even more so when you consider what Jobs said at the keynote.
Click to expand...
Since wer'e offering 'understandings' here and not facts. My own is that the distributor is appointed to handle Apple products, but Apple has no official presence (as above). The price is set on an import and markup basis.

Since Vodacom has an exclusive deal (bad for competition :o), presumably they set the price in conjunction with Core.
 
icyrus said:
I think you'll find that Apple has very little to do with local pricing.
Click to expand...

Apple need not set the end price exactly. It's about the ratio. If the local distributor adds a % to the 'wholesale' price they pay the ratio will work through to the retail price. The price ratio between the different models should therefore be the same for 'wholesale' and retail here and in the US. My gripe is about this huge price ratio difference between 8GB, 16GB and 32GB models (more than it should be considering the prices of flash memory). This ratio must start at the manufacturer (Apple).
 
BeVonk! said:
Apple need not set the end price exactly. It's about the ratio. If the local distributor adds a % to the 'wholesale' price they pay the ratio will work through to the retail price. The price ratio between the different models should therefore be the same for 'wholesale' and retail here and in the US. My gripe is about this huge price ratio difference between 8GB, 16GB and 32GB models (more than it should be considering the prices of flash memory). This ratio must start at the manufacturer (Apple).
Click to expand...
Is there a 32 now?
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X