

Don't hate the playa, hate the game


So, will customers buy into Apple's strategy?

Source: Reuters

Comments     Threshold


RE: No reasonable justification
By augiem on 10/24/2012 4:17:17 PM , Rating: 3
It's akin to everyone looking at all the free "fremium" games out there and thinking that $0 is the new price for video games and that anyone charging more is ripping people off, even when those other games aren't built around the in-app-purchase scheme. Shallow thinking.

RE: No reasonable justification
By Bubbacub on 10/24/2012 6:13:39 PM , Rating: 2
but freemium games are crap compared to proper ones

however, the nexus 7 is better than 90% of the competition that is also higher priced.

it doesnt matter why - if you going to make a tablet then you have to compete against the nexus 7 price tag.

if a company cant compete and make money then they should get out of the tablet business

RE: No reasonable justification
By GulWestfale on 10/24/2012 10:10:14 PM , Rating: 2
so this thing essentially packs the same specs as a $150 playbook, but with a slightly larger screen? how dumb does apple think we are?

RE: No reasonable justification

RE: No reasonable justification
By augiem on 10/25/2012 3:36:22 AM , Rating: 2

It's just not the case. Apple has never competed with the low-ball price tags of desktops, laptops, phones, or tablets. They just don't have to. Not everyone buys the cheapest thing out there, it's just that simple. Losing money on the initial sale only to make it up later in secondary purchases has been tried countless times before in many industries and rarely does it stick because the companies taking the losses can't do so forever.

Apple's sales certainly aren't being crushed by Amazon/Google. Apple doesn't have to cut its price until that happens, if ever. That's the free market. An item is worth as much as people are willing to pay for it, and at this time, that price is of Apple's choosing.

RE: No reasonable justification
By augiem on 10/25/2012 4:23:58 AM , Rating: 2
The most obvious successful story of this model (besides the razor blades) would be the game consoles. But consoles were dealing with licensing fees and royalties on ~$60 games. At an average of $1 for an app, making significant revenue with this scheme is going to be a lot harder. So far Amazon's doing okay. I haven't heard any reports on the Nexus 7's sell through rate on media though.

