Windows Phones manufacturing price to be reduced by half for next year to gain on volume
0. phoneArena 20 Oct 2011, 09:22 posted on
Microsoft's Andy Lees says supply chain contracts are now in place to bring the cost to make the average Windows Phone from $400 to $200 next year, which will allow manufacturers volume or greater margins...
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1. snowgator (Posts: 3015; Member since: 19 Jan 2011)
Good for them, better for me. Like less expensive. Less expensive is always a good thing. You ain't Apple. Build your brand through excellent devices at affordable prices and profit will come. Microsoft seems to be prepping for WP8 anyways.
2. bluechrism (Posts: 98; Member since: 09 Sep 2011)
Also good, is that they ain't apple. If they are making them for $200 and selling for $600, that's an obscene markup in price. Yes the company has a right to make profit, and there is demand there, but that's one heck of a markup.
3. Schmao (Posts: 302; Member since: 05 Jul 2009)
That is one heck of a markup, but thats how Apple does things. Many customers seem to drool over iPhones and are willing to pay the price for the device. Apple takes advantage of this.
5. Penny (Posts: 903; Member since: 04 Feb 2011)
The consumers get the iPhone for $200-$300, which is why they are willing to pay the price. Apple sells the iPhones to carriers for $650ish because they know the carriers will buy it even if they have to subsidize it down to the $200 cost. As long as the consumers keep getting it for $200, they don't think it is overpriced and the demand is there. Taking away the subsidy would be the only way to reveal to customers how overpriced the phone is.
4. brant (Posts: 24; Member since: 08 Aug 2011)
Yeah because Microsoft already make millions almost a billion from suing android manufactures so they figure they can cut those make windows phones a brake.
6. snowgator (Posts: 3015; Member since: 19 Jan 2011)
Almost true, except that it ain't almost a billion- 440 milion is the highest number I have heard. Which is still your point, I know. They have a steady stream of cash to help offset the development and production of WP. Also, again- they ain't Apple. They haven't sued anyone over the patents they own. They work out deals without going to court.
7. Leyjee (Posts: 47; Member since: 25 Feb 2011)
Microsoft has been in the mobile game alot longer than Droid and Apple, so if they have companies inflicting on their many patents they have all rights to sue. Its a tough game and they have to get a foot hold somewhere. Wp7 is the future !
8. denney (Posts: 98; Member since: 20 Oct 2011)
Microsoft has not been suing. They have been politely asking for royalties for patents and production agreements being violated by android manufacturers.
9. Ravail (Posts: 181; Member since: 14 Oct 2011)
Microsoft is most likely making more money off Android phones sold than off their own Windows Phones sold.. its hilarious if u ask me