AirPods and Apple Watch "Underpriced" to Bring New Users into Apple Ecosystem

Discussion in '[H]ard|OCP Front Page News' started by Megalith, Mar 19, 2017.

  1. Megalith

    Megalith 24-bit/48kHz Staff Member

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    Analysts are claiming that the fruit company has intentionally dropped the brand tax on some of its newer products in an effort to tempt more buyers. An example would be their wireless AirPods, which retail for $159—a supposed bargain compared to competitors’ offerings, which are priced as high as $300. Wait a second, can’t you get Bluetooth headphones for like, $20?

    Apple is underpricing AirPods and the Apple Watch in an effort to bring new users into its ecosystem, according to Neil Cybart of Above Avalon. The analyst said this pricing strategy was "unimaginable" ten years ago, when Apple was often accused of pricing products artificially high, aka "Apple Tax." Cybart believes a strong case could have been made for Apple to price its AirPods at $249, or even $299, but by selling them for $159, he thinks Apple has "removed all available oxygen from the wireless headphone space" and forced competitors to cut pricing in an attempt to better compete.
     
  2. westrock2000

    westrock2000 [H]ardForum Junkie

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    I don't see a scenario where Apple is just selling a product at a normal price the market will bear. They are not the cheapest, and they definitely aren't the most expensive. They just are.

    With Apple I products I see it as you either have a problem with the price or your don't. There are other aspects to using their products that are more important to know then the price.

    To me this is like someone saying they were going to get a Mercedes, but they went with the Altima cause you know, it was just cheaper. No....you were never seriously going to get a Mercedes.
     
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  3. Cali3350

    Cali3350 [H]ardness Supreme

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    Airpods are great, and priced competitively. Haters gonna hate.
     
  4. Krazy925

    Krazy925 [H]ard|Gawd

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    The Jabra were higher priced and had larger drivers and supposedly sounded better, so I snagged a pair of their Bluetooth headphones. They are pretty amazing IMO.

    I've heard that the AirPods sound just like the EarPods with no wires. I was never impressed with the fit of the EarPods, and always got a set of aftermarket headphones anyway because they seemed to sound worse than stuff I already owned.
     
  5. azuza001

    azuza001 Gawd

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    You can't get Bluetooth tampons for 20$, don't be ridiculous. :)
     
  6. NeoNemesis

    NeoNemesis [H]ard|Gawd

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    I got the BeatsX as a gift. I like them quite a bit though I doubt I would have bought them for myself.

    I can't stand the AirPods though. Even if you set aside the fact that they're so easy to lose, they look downright idiotic. To each their own I guess.

    I really don't think Apple could have sold them for $300. The sound quality just isn't good enough.
     
  7. Trimlock

    Trimlock [H]ardForum Junkie

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    I have a nice set of LG Bluetooth headphones and the AirPods sound and fit quite a bit better. I've contemplated buying them but I have a 5 year old that likes to steal my stuff, use it and then hide it.
     
  8. delita

    delita [H]ard|Gawd

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    Perfectly happy with my Bluetooth headphones that are connected around the back of my head. I would shit bricks if I somehow ever misplaced one of the earbuds because they were completely seperated from each other. Also, mine were only $89 and sound pretty damn good. MEE Audio X7 Plus. I haven't heard the AirPods but I doubt they blow anything out of the water, even with their "low introductory price" of $159.
     
  9. Mohonri

    Mohonri [H]ardness Supreme

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    Um, in what world is a $350 smartwatch that only works if you have a (minimum) $650 phone "underpriced"!?
     
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  10. westrock2000

    westrock2000 [H]ardForum Junkie

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    It may seem like another world to many. But we just lovingly call it America.
     
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  11. BloodyIron

    BloodyIron [H]ard|Gawd

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    Learn your history! One of Apple's original competitive advantages was their computers were affordable! This kind of started turning around the time the iMac and such came about. It's too bad they didn't keep going with affordability because it probably would have made them even more profitable all these years!
     
  12. nightanole

    nightanole [H]ard|Gawd

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    The same world that you pay extra for a bigger screen on your phone, but then have to use 2 hands to operate the device that has 6x smaller screen area.
     
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  13. westrock2000

    westrock2000 [H]ardForum Junkie

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    If you watch the 2012 "The Lost Interview" you can see what Steve's vision was. This is a great interview and it changed my mind about Steve Jobs. This is in 1995 and he had already long been kicked out of Apple, but hadn't been hired back yet. Apple was looming on the brink of disaster and you could tell that he was very bitter about having his creation taken away from him and watching it crumble. He gave an extremely candid interview, both about why people hated him and what HIS vision for Apple would be going forward.

    Now the reason this is important, is because Steve knew he could never beat Microsoft. Microsoft was the king of utility. You bought a PC because you needed it, or because it was the easiest to acquire. He said, if he were in charge of Apple, he would instead make a computer that you wanted to buy. But to do that, he would have to make it a lifestyle thing. And of course, in 1995, a computer was anything but a lifestyle for average Americans. So he pretty much set the ground rules for the iPod and the whole idea of the ecosystem.

    It's a rare glimpse into a time capsule. The interview was supposedly lost shortly after it was filmed and it was only after Jobs died that his copy was found and that is what the 2012 released version is sourced from. So again, this guy was sitting on evidence of vindication of his ideas and vision the whole time and he never made a big deal about it. He said in the interview that he is an asshole, but that that was what he did. He made really good people even better by being the nagging asshole. Forget the Ashton Kutcher film and all that. Watch this version. Get the words straight from the sources. It's easy to see why Apple has lost it's magic touch.
     
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  14. raz-0

    raz-0 2[H]4U

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    I think the article is right about the airpods to an extent. I also think they leave out the apple pencil. I think they are wrong about the iwatch.

    If you look at what the bluetooth headsets were going for, a connected pair of them were going for $40-100. The independent pairs were going for $250-400. There was obviously a shitload of margin in them. Apple dropped a best of breed (feature wise anyway) set of independent wireless buds for $150 and sucked a huge chunk of margin out of the segment. But they needed to to make the iphone 7 not look like nay more of a headphone jack apocalypse than it was.

    The apple pencil is probably one of the best stylus input devices on the market, and at $95, while proprietary and embedded (deeply) in a specific ecosystem, it's still less than brands like microsoft and sony are upcharging to add on an inferior stylus to their products. One could argue that the products these devices are inextricably tied to is where the real product choice is made, so apple had to keep the price from sealing the deal.

    The watch however is just priced like it's a generation old, and if the article actually listed android compatible products contemporary with it, it would see equal or greater discounting.
     
  15. Tiberian

    Tiberian Finger Me

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    Apple? Underpricing? Is it April 1st or something? :D
     
  16. Monkey God

    Monkey God [H]ardness Supreme

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    Classic drug dealer tactics 101.
     
  17. Master_shake_

    Master_shake_ 2[H]4U

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    this reminds me of a stroy about gibson guitars.



    TL;DR low price =bad high price = status symbol.