iPhone Price Racketeering

[icyrus]

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).

The difference is $70 for 8 - 16 and $100 for 16 - 32 in the US vs R1000 and R1500 from core. Apple undoubtedly make a handsome margin but the pure cost of the flash memory is not the only thing to consider.

By the way where does that R300 cost of flash memory come from? For interests sake.

 

[BeVonk!]

The difference is $70 for 8 - 16 and $100 for 16 - 32 in the US vs R1000 and R1500 from core. Apple undoubtedly make a handsome margin but the pure cost of the flash memory is not the only thing to consider.

By the way where does that R300 cost of flash memory come from? For interests sake.

I paid R340 for an 8GB Sandisk (retractible) Flash Drive a month ago (and Sandisk was more expensive than other brands on the shelf).

 

[JK8]

I think you'll find that Apple has very little to do with local pricing.

Nope you will fall of your chair if you knew how Apple do bussiness, everything is done by their rules and their rules only, The SPs in some parts even suffering losses.

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.

PnP do have the same prices across all stores on certain products, I doubt you find things the same price if they not advertised, PnP are very sly with their pricing, when they have a special on bread, they very often raise the prices of other products associated with bread, like butter or jam... Their specials are just there to get the customer to the store.

Vodacom does not advertise the iPhone at a set price, although theres a basic amount the store owner can still chose what he wants to sell it at.

Vodashop are franchised out by Vodacom, 4U stores are franchised by Chatz Cellular.

 

[icyrus]

Nope you will fall of your chair if you knew how Apple do bussiness, everything is done by their rules and their rules only, The SPs in some parts even suffering losses.

I know that, but last I heard Apple set the price of the iPhone at $200 - but that is not exactly what vodacom is selling it at.

 

[JK8]

I know that, but last I heard Apple set the price of the iPhone at $200 - but that is not exactly what vodacom is selling it at.

Thats not exactly what anyone sold it at. There was terms and conditions attached to the 200$ price tag.

 

[icyrus]

Thats not exactly what anyone sold it at. There was terms and conditions attached to the 200$ price tag.

I am sure there were, but selling it for triple to quadruple that seems a bit odd to me.

Nevertheless that sort of transparency doesn't happen in the real world so I guess us customers will never really know the real story.

 

[morkhans]

Thats not exactly what anyone sold it at. There was terms and conditions attached to the 200$ price tag.

Like a 2 year contract with AT&T. Thus a 2 year Vodacom contract with a pay-in of ~R1600 equates to more or less the same (excluding of course the unlimited data plan they get over there).

 

[Byakuya]

I would imagine that a Vodashop store is a franchise, each owned and managed by different individuals with equally different business plans. Vodacom can give guidelines on pricing of phones and other accessories to these shop owners but vodacom cannot dictate prices to them, remember, Vodashop essentially sells sim cards, a telecommunications service to the public, not cell phones. The cell phones are added in to appeal more to the customer, and as they are not free and the way in which they are attained by each shop differs, one should expect the prices to differ.

 

[tco21]

I would imagine that a Vodashop store is a franchise, each owned and managed by different individuals with equally different business plans. Vodacom can give guidelines on pricing of phones and other accessories to these shop owners but vodacom cannot dictate prices to them, remember, Vodashop essentially sells sim cards, a telecommunications service to the public, not cell phones. The cell phones are added in to appeal more to the customer, and as they are not free and the way in which they are attained by each shop differs, one should expect the prices to differ.

Agreed.