Apple's pricing magic explained

16. appleDOESNT.com posted on 15 Jan 2013, 11:04 5 0

Only apple makes money off Apple. Stores don't. Sales associates don't. Apple's highest of highest margins only benefit the ruthless, over priced, under-tech'd company starring non other than rotten fruit

p.s. why do you think most sales people push everything BUT apple. because their commissions are so low it's just a waste of time

18. thephoneguy92 posted on 15 Jan 2013, 11:40 0 0

Speaking from experience, most carriers base commission off of number of phones sold, regardless of manufacturer.

19. kellkeezy posted on 15 Jan 2013, 12:10 1 0

yeah but we make less commission on the iphone then any other brand. we work off a point system at my retailer so basically i make $60 (.60) off an iphone were an LG Spectrum 2 I make $172 (1.72)

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23. thephoneguy92 posted on 15 Jan 2013, 13:07 0 0

Some third party dealers may work that way, but I would be willing to bet that all major carriers pay on the amount of phones sold, not types of phones sold.

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27. jeck77 posted on 15 Jan 2013, 17:45 1 0

So you make as much as $172 for a sale? On a contract that your employer makes about $300 commission from the carrier? You get about 48% of the total gross commission your employer makes? Wow. I'd like to know where you work. I've been in this business for 14 years, and that's the largest commission per phone sold on contract (I'm assuming on contract because no retailer makes that kind of money on sales of non-subsidized handsets) I have ever heard of. Wow.

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21. pats4thewin posted on 15 Jan 2013, 12:29 0 0

i make the same if i sell you a flip phone or an iphone 5 64gb (free and 400$ on contract) its more about boxes sold at most retailers. the majority of the reason that sales persons push android over iphone is that most salespersons have used multiple products and are more tech savvy than most consumers are. and like the fact that androids offer more utility to them. although that is not always the case as i have 3 co-workers with the iphone 5 (IMHO ofc)

8. bucky posted on 15 Jan 2013, 08:42 1 3

Lol. If love to see some proof of a "dirt cheap" iPhone 5 and new iPad.

10. dan86 posted on 15 Jan 2013, 09:49 0 2

This is forgery with its high value customers. Apple produce iCrap you eat. A monopoly of market shouldn't be tolerated for a long.
Insane business strategies worth real dirt.

17. tedkord posted on 15 Jan 2013, 11:32 0 1

Iphone 5 was $128 on contract at Radio Shack. That was unheard of even a year ago.

15. cripton805 posted on 15 Jan 2013, 10:59 0 0

$20 off with an iTUNES card is dirt cheap?

5. J-LoTheGreat posted on 15 Jan 2013, 08:27 4 0

Yes the customer loses, however, you are only a customer if you buy their product.

9. ogy_dogy posted on 15 Jan 2013, 09:39 0 0

Couldnt agree more...

12. jmoita2 posted on 15 Jan 2013, 10:36 0 0

This is what the anti trust laws were created to prevent. I guess Apple is exempt from them. They turned price gouging into a science.

13. threed61 posted on 15 Jan 2013, 10:43 1 0

Apple is fixing prices on a non-essential product. There are lots of alternatives to iProducts, many both better and cheaper. No one has ever been forced to by their stuff.

28. cretinick posted on 15 Jan 2013, 21:07 0 0

I agree.

But as their products are a market reference (perhaps the major), all other manufacturers end up basing their prices on the Apple's prices. Ifthey lay far below, they are deemed inferior products. In the most of customer's minds, more cheap it is, lower is the quality.

In the end, they pull up the prices of all the Phone, Laptops, computers, music players, tablets...

22. pats4thewin posted on 15 Jan 2013, 12:41 0 0

a company can hardly be successful if the said company isnt money hungry. some may have a more aggressive approach than others, but that hardly should be a reason to hate apple that they are one of the most successful companies in the world because of their business model. hate them all you want, but you cant deny their smarts

31. ZeroCide posted on 17 Jan 2013, 13:40 0 0

Standard apple practice since the begining of apple.