Re: N900 $510

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On Wed, Dec 9, 2009 at 3:29 PM, Andrew Flegg <andrew@xxxxxxxx> wrote:
> On Wed, Dec 9, 2009 at 22:24, Mark <wolfmane@xxxxxxxxx> wrote:
>>
>> Sarcasm noted, but I'm simply quoting iPhone territory.
>
> Indeed, which is why I mentioned their unlocked prices (the N900 is
> free in the UK on contract, and that's cheaper than an iPhone. Do I
> think the N900 will be a bigger success in the UK than the iPhone? No.
> Do I think the N900 will be a bigger success in the UK than the N810?
> Yes.)
>
>> There are only two possibilities: either the N900 is intended to
>> compete with the iPhone, which means it must come in at an equivalent
>> price point; or it isn't intended to compete with the iPhone, in which
>> case it must be cheaper than the iPhone.
>
> You're making three dangerous assumptions here:
>
>  * That _everyone_ who would buy an iPhone would buy a cheaper device
>    based on price alone.
>  * That _everyone_ who would buy an N900 won't pay a bit more for it.
>  * That the N900 is intended to compete for the truly mainstream
>    market for high-end consumer mobile devices the iPhone is
>    currently dominating.
>
> Cheers,
>
> Andrew

More straw man fallacies.

1) No, few who would buy an iPhone would seriously consider an N900
anyway (and vice-versa). But most people who would buy an N900 aren't
going to do so if it is significantly more expensive than an iPhone.
Not that the iPhone is itself the target, it's just that the iPhone
happens to be at that particular price point more than which very few
people will pay for _any_ smartphone.
2) No, just _many_. You're making blanket statements and ignoring the
reality that even if the price point is only a deterrent for 25% of
the potential buyers, that's still enough to kill profit margins. The
more of an item is produced and sold, the more profitable it becomes.
The less is produced and sold, the less profitable. And the more that
are produced and _not sold_, the quicker the profits become major
losses. Simple fact of life in manufacturing.
3) It ultimately doesn't matter what market the N900 is "intended"
for. What matters is how it's perceived by the general buying public.
That's been proved over and over again.

Mark
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