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Old 9th Feb 2010, 16:46   #1
PiKe
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Are apple price fixing?

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?

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Old 9th Feb 2010, 16:50   #2
JAMAL
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In other words they don't need to discount the iphone as they sell well enough.
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Old 9th Feb 2010, 19:02   #3
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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.
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Old 9th Feb 2010, 19:12   #4
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Originally Posted by Nexus View Post
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.
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Old 9th Feb 2010, 19:50   #5
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Quote:
Originally Posted by PiKe View Post
Just had a call from Vodafone as I expressed interest in the iPhone long before I saw the obscene contract prices.
Vodafone keep ringing me (on 00 8080000133) because I expressed interest in switching, wish I'd never filled the form in now!

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Old 9th Feb 2010, 22:01   #6
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Originally Posted by Westyfield2 View Post
Vodafone keep ringing me (on 00 8080000133) because I expressed interest in switching, wish I'd never filled the form in now!
I use the number for the local purple shirt store for things like that

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Old 9th Feb 2010, 22:09   #7
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Originally Posted by Nexus View Post
The only people who don't tend to be people who have a grudge against Apple.
Or people who don't think it's worth the cost, or simply prefer one of the many alternatives out there.

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Old 9th Feb 2010, 22:12   #8
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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.


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Old 10th Feb 2010, 01:17   #9
RobH
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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.
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Old 10th Feb 2010, 01:45   #10
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Originally Posted by wush View Post
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

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Old 10th Feb 2010, 05:03   #11
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Quote:
Originally Posted by PardonTheWait View Post
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.

Last edited by Aod; 10th Feb 2010 at 05:09.
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Old 10th Feb 2010, 07:25   #12
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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

http://www.isuppli.com/News/Pages/iP...n-Reveals.aspx


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Old 10th Feb 2010, 07:29   #13
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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.

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Old 10th Feb 2010, 09:01   #14
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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.

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Old 10th Feb 2010, 11:26   #15
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Nobody else manufactures the iPhone therefore it's not possible for price fixing to occur.
Exactlly, they make them, they set the price.

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Old 10th Feb 2010, 12:11   #16
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Hehehe, Stretch I'm not sure if you're agreeing with me or not!

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Old 10th Feb 2010, 12:12   #17
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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

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Old 10th Feb 2010, 13:06   #18
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Quote:
Originally Posted by Feek View Post
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.

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Old 10th Feb 2010, 13:57   #19
"andy"
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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
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Old 10th Feb 2010, 14:00   #20
"andy"
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Quote:
Originally Posted by Westyfield2 View Post
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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Old 10th Feb 2010, 14:03   #21
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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
Its more the fact that the wholesale price of the iPhone is alot higher than other phones - its costs more for the networks to buy it and that cost is now passed to the consumer as they know it will still sell, while other phones are still subsided to make them attractive purchases

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Old 10th Feb 2010, 14:03   #22
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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.
Nope, if all the manufacturers CONSPIRED to increase the price of their devices to the same level, that would be price fixing. If they all independently decided they could get that much without consulting each other it'd be fine...

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Old 10th Feb 2010, 17:53   #23
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Originally Posted by Nexus View Post
The only people who don't tend to be people who have a grudge against Apple.
I have an Iphone so no grudge with Apple.

Quote:
Originally Posted by Feek View Post
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.
Umbro were accused of price fixing the England shirt and no one else makes them. What a coincidence that 3 massive companies offer the iphone and everyone charges the exact same price.
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Old 10th Feb 2010, 18:40   #24
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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.
Apple make a huge margin.

Everyone else that sells Apple's kit makes a very very small margin.


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Old 10th Feb 2010, 18:47   #25
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I have an Iphone so no grudge with Apple.

Umbro were accused of price fixing the England shirt and no one else makes them. What a coincidence that 3 massive companies offer the iphone and everyone charges the exact same price.
Different item, there's arguably no alternative product available.

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Old 10th Feb 2010, 18:51   #26
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Different item, there's arguably no alternative product available.

Levi Jeans. Plenty of alternatives. Ask Tesco if Levi fix the price?
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Old 10th Feb 2010, 21:18   #27
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Of course Apple set the price, but that's NOT the same as price fixing, they are two different things.

I say again, Apple are not price fixing. With nobody else producing the same item, it's not possible to price fix the iPhone.

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Old 10th Feb 2010, 21:23   #28
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Levi Jeans. Plenty of alternatives. Ask Tesco if Levi fix the price?
Well they set the price, but they don't collude with other companies to fix the price at a set level. Which is what price fixing is in legal terms. (and it's illegal in most developed countries).

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Old 10th Feb 2010, 21:24   #29
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Originally Posted by Feek View Post
Of course Apple set the price, but that's NOT the same as price fixing, they are two different things.

I say again, Apple are not price fixing. With nobody else producing the same item, it's not possible to price fix the iPhone.
It would be possible for Apple to collude in price fixing for smartphones in general, if they for example agreed with HTC, Nokia etc that they wouldn't sell smartphones for less than 400. Price fixing a branded product is of course impossible...

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