Are apple price fixing?

Caporegime
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Just had a call from Vodafone as I expressed interest in the iPhone long before I saw the obscene contract prices.

Had a nice informal chat about all the networks all being about the same monthly prices and he mentioned that Apple set the price for the phone, and although he can offer up to 50% any other phone, he can't do that with the iPhone. The iPhone is worth what I paid for it new 2 years ago (2G) from an O2 shop which was £150, but no more.

Is this not price fixing?
 
Soldato
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I don't think it is.

The iPhone is a costly phone as it is, which is why it's subsided in high contract monthly fees, or an initial one off high cost if you buy one on pay-as-you-go.

If you then think about just how popular the iPhone is, they know they can easily make money selling them because everyone wants one and they sell themselves. I'd imagine it's actually harder for them to shift their other manufacturer phones now, thus why they will offer you a 50% discount on any other phone, but not Apple.

You know, most of my friends and even family members have iPhones now. The only people who don't tend to be people who have a grudge against Apple.
 
Soldato
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You know, most of my friends and even family members have iPhones now. The only people who don't tend to be people who have a grudge against Apple.
It's true - I think if someone is a "tech" person and doesn't have a (sometimes legitimate) beef with Apple, there's a high chance they have an iPhone in their pocket.
 
Soldato
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What about a deal/discount on the contract? It should be fun to watch what Orange/O2/Vodafone have to offer when the next model comes out.
 
Caporegime
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It's true - I think if someone is a "tech" person and doesn't have a (sometimes legitimate) beef with Apple, there's a high chance they have an iPhone in their pocket.
I've bought Macs for the past 5 years at least and have used BlackBerrys for the last 3. So maybe I'm an edge case :p
 

Aod

Aod

Soldato
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It's not so much price fixing as obscenely low margins. Only way they could offer it cheaper would be to lose money.

I don't believe that's true for a second. Looking at apples profits in comparison to its revenue shows that it can't be.

Knowing the in-and-outs of chinese mass production pretty well, i'd be shocked if the unit price of an iphone was more than $70


It IS price fixing, and it's very easy for apple to do because they are the sole retailer of iPhones to the distributors. They can charge EVERYONE whatever the hell they like.
 
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Soldato
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It IS price fixing, and it's very easy for apple to do because they are the sole retailer of iPhones to the distributors. They can charge EVERYONE whatever the hell they like.

No, it isn't. Unfortunately Apple can point at every other phone on the market and state you still have a competitive market to choose your phone from.

Just because a customer is excluded from owning a specific device due to the price does not equate to price fixing.

Now if you were to link communication on the matter of pricing between Amazon and the iBookStore for their competing devices then this would be investigated.
 
Commissario
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No, Apple are not price fixing.

Price fixing is where two companies who produce the same product collaborate together and decide on the price they're going to sell an item for.

Nobody else manufactures the iPhone therefore it's not possible for price fixing to occur.
 
Associate
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my step dad got a new contract with vodaphone the other day when his ran out...

he was on a buiness contract and it ran out as he retired. As his old bills were like £200-£500 every month (covered by the company he worked for) the gave him a Iphone 3g for free on £5 per month with like 500mins and a massive amount of txts. obviously they didnt know his phone wont be get more use now than the £5 free

all he did was call to say he was leaving to go to orange
 
Caporegime
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No, Apple are not price fixing.

Price fixing is where two companies who produce the same product collaborate together and decide on the price they're going to sell an item for.

Nobody else manufactures the iPhone therefore it's not possible for price fixing to occur.

It doesn't even have to be the same product, it could be comparable products. If all smartphone manufacturers suddenly upped their prices to Iphone levels - £400, say - then that would be price fixing. As it is, if you don't like the price of the Iphone you are free to buy a cheaper Symbian or Android phone.
 
Soldato
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it 'only' costs 450 straight from apple yet you need to pay 89 quid to get it with vodafone/orange on a 35 per month contract

whereas look at other 450-550 pound phones and vodafone get good deals from the manufacturers which enables them to give the phones away for free with £35 contracts

id guess that vodafone are paying an obscene amount for the handsets compared to htc/nokia/SE handsets
 
Soldato
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Vodafone keep ringing me (on 00 8080000133) because I expressed interest in switching, wish I'd never filled the form in now!

i filled in the same form before xmas. also one for the HD2 about a day after they discontinued it. they said theyd contact me when any news came back

well i heard nothing from them about either. and a lad at uni has just got a hd2 on vodafone too. grr vodafone
 
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