Why do smart phones cost so much?
Seriously, why do they cost so much?
They have tiny displays, low power processors, batteries that often prove to be inadequate. My netbook has a more powerful processor, a bigger screen, more of pretty much everything, and yet it cost $300 new, whereas your average unlocked smart phone runs about $600. A few years ago, a device like the HTC Tilt would cost you over $800 unlocked, if memory serves.
It’s easy to nitpick that the processor style for a cellphone vs. a netbook is very different. The software is very different. The smart phone has a touch screen. So let’s take an example that’s a bit harder to argue.
iPhone 4S vs. the “new” iPad.
iPhone 4S 16GB unlocked price? $649.
new iPad 16GB wth 4G? $629.
They’ve got the same processor, same screen pixel density, the same internal storage. The iPad has a faster cellular modem than the 4S. The screen is immensely bigger, as is the battery to power it. The iPad intrinsically costs more to build than an iPhone from a materials standpoint. So what is the justification for the cost of the iPhone? The camera? Siri? (hah!)
This is not a hate on Apple post (picking on Siri notwithstanding), I’m pretty certain every other cell phone maker does the same thing. Apple’s iPad affords a cleaner comparison than is usually available. The question is, why are they able to get away with it? If there is such a massive profit to be had making cellphones, why aren’t more companies doing it, driving down the prices?
No comments:
Post a Comment