- 12-31-12, 05:52 AM #51
- CrackBerry User
12-31-12, 05:58 AM #52
- 46 Posts
Tech hardware is a fast moving market, I hope they have got their parts at a good price, allowing as low as possible build price. (Yes they need to make profit, but this relies heavily on buying the right parts, at the right price)
The bulk of the market is £250-£400 'Smart Phones' which is why the Nexus is selling out so fast! IPhone can and will always charge a premium, let's stop using them as a comparison.
Please BB - Please target this sector, anything else is suicide!
- 12-31-12, 06:11 AM #53
Addendum: I forgot to mention something, which actually has a significant effect on price. As time wears on, component prices fall. Obviously the iPhone 4 costs Apple far less to make today than it did 2 years ago. One business strategy is to sell the phones at cost or lower, and then wait for component prices to drop to make a profit. This is the strategy adopted by Lee Jun and he has publicly stated it. When he introduced the Xiaomi 2 back in October, he stated that although they would sell for $320, it was going to cost his company about $350 (although I suspect he's embellishing some, he thinks he's the Chinese Steve Jobs) until sometime in 2013 when component prices drop, at which point he expects his company to start making a profit on the handset.
Last edited by Roo Zilla; 12-31-12 at 06:46 AM.
- 12-31-12, 06:31 AM #54
- 12-31-12, 07:00 AM #56
For iPhone 5, I think the most expensive part after the screen is the wireless modem, at over $30, but the bulk of the cost of that part is the IP, not the physical chip, which is probably a couple dollars to make. Thus, as Qualcomm pays out IP fees, they collect it from the buyers of the modem part. IP fees for the most part, are non-negotiable since they are usually based on fixed rates because of FRAND licensing. Contrast that to NAND flash, of which 16GB is about $10. You can probably go to a store and buy 16GB of NAND flash for a little over $10.
Last edited by Roo Zilla; 12-31-12 at 09:02 AM.
- 12-31-12, 10:35 AM #57
making a profit on a few million phones sold is all well and good but will only contribute to blackberry's demise, i'd rather attract a bigger user base and then get the profits on the next model.
RIM cant be shortsighted and expect the Z10 to be a direct money maker for them. If so we will continue on the downward spiral, or at best remain an insignificant 3rd.
I'm not saying sell the phones at a loss, but at least keep the profit to a bare minimum, it will pay off in the long run
- 12-31-12, 10:51 AM #58
Re: BB Z10 Price?
- 12-31-12, 10:55 AM #59
all they will be able to do is rely on their name, and then drop to match when that starts to fail
- 12-31-12, 10:59 AM #60
- 12-31-12, 12:19 PM #61
- 12-31-12, 12:26 PM #62
- 12-31-12, 04:52 PM #63
Re: BB Z10 Price?
- 01-01-13, 02:21 AM #64
- 01-01-13, 03:28 PM #65
They wont make money if people dont come to the platform, simple as that.
Attract users to the platform with cheap device, get them hooked, make money on the next device. If the Z10 is popular, word of mouth will beat any marketing RIM can do.
Keep in mind this is a unproven platform, Its entering the market with zero reputation, unlike BB6 and BB7. People simply wont pay a huge price for something unproven
- 01-01-13, 05:59 PM #67
- 01-02-13, 04:44 AM #69
The reality is that they are not in a position to support themselves from other sources and need to be profitable on a per device basis and as far as getting people to come to the platform, their initial target is probably to get as many bb7 or older users to upgrade which will give them a decent foundation and provide a fair amount of word of mouth too without doing stuff that would kill their company.
- 01-02-13, 07:20 AM #70
BB Z10 Price?
i think with increased users will come more service fees. also i think they should sell at minimum profit, not no profit. also i think they should do this only for the z10 as its first out. purely to build a reputation. they can get their normal profit from the n series.
another thing i believe is that bb10 will be the major source of income for 2013 to begin with. i expect that to be bb7 devices still.
but i see where you are coming from and understand your reasoning. just remains to be seen what rim actually do
Sent from my BlackBerry 9810 using Tapatalk
- 01-02-13, 07:46 AM #71
I will say that I would pay iPhone-like off contract pricing of $650+ if RIM comes out on January 30th and states that they have a version of the phone with the TI OMAP 5430 processor in it. That would be cutting edge processor superior to the Apple A6 and the Qualcomm S4 and I would gladly fork out more coin based on everything that I have read about the processor with the architecture and power efficiency that it is supposed to deliver.
Otherwise I hope that RIM learned from BBOS 7 and PlayBook sales in the US and have learned that they need to price the devices accordingly to move product.
- 01-02-13, 11:52 AM #72
Wow you Brits are sure damn foolish. How would you let any company sell you something that costs you more than in North America?
£500 is $800 CAD, I have never once paid that much for any RIM device that goes for Playbook which is a 64GB one. I did the match using the Bank of Canada's current exchange rate calculator.
- 01-02-13, 01:57 PM #74
20% tax (tax = vat)? Even still 20% of 500 is 100 pounds right?
We pay 13% tax on everything which is still a lot less than 20%, a $650 device would cost $734.50 with tax CAD but not $800 which is what I would pay if I bought the same device there!!
- 01-05-13, 05:53 AM #75
BB Z10 Price?
Also, if you do a price comparison on anything from the UK, it would seem like they pay more for everything. Keep in mind though, the Pound is more valuable than the CAD so you can't really do comparisons like that.
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