QUOTE(girl83 @ Apr 14 2013, 01:20 PM)
what kind of service? i speak based on facts and giving examples out.
if thats stupid comparisons and why bother reply in the first place? you don't comprehend it well, do you?
Nah it's you who can't comprehend the situation here. Clothes aren't comparable to high tech electronics. If your clothes got issue, rips, missing buttons or whatever, can easily repair peanuts only. You use lower quality people can easily detect it and will not buy from you.
Whereas electronics if you use lower quality the probability of defects occurring (and thus incurring high repair costs/losses on the part of the manufacturer) exponentially rises. You don't screw around with electronics (i.e - unlike Acer). It's a well known fact that smartphones have a significantly high margin of profit which is why they can drop the prices so much, thus only cutting into their significant profits. So where are you gonna cut when production cost is already as low as they can get away with without compromising build quality? Let's say the cheapest high-end Nexus 4 is sold at near cost ($299) and let's say the L920 costs slightly more to produce ($350). The RRP for the L920 is $650 ($300 gross profit). Oh but wait, all the internals are locked down in price and bought in bulk (hundreds of thousands or millions of components all at once), the screen is only supplied by one company and there's only a few generational variants, and the polycarbonate shell casing is probably the cheapest part and manufactured in-house. So tell me, where are they supposedly going to get these "cheaper" materials from when they've got all these parts still lying around? Phone companies don't buy in piecemeal. They buy in bulk. You also can't change materials on the fly just because you want to cut cost because it involves R&D and time to test out the quality/suitability of the build and then retooling your manufacturing bases to produce these new materials . More time that could have been spent on producing more existing phones and more cost....in order to reduce cost on something that will be obsolete in a year? What a laughable concept.
The only reason why Apple can maintain their insanely high profits is because they keep their consumers happy and their price high (thus never cutting into their profit margins). Other companies can easily do the same, i.e - Samsung is getting into the game, but most aren't able to compete with quality or marketing and thus they have take less profit in order to move their existing stock. (Lumia 920 RM1999->RM1699). If Nokia is struggling, it's only because they aren't selling enough high-end phones.
Heck someone already pointed out that Nokia's profit margin is significant but you're too far in denial to see it. "Oh I tot it so small. Iz noookia doomed?"
Apr 14 2013, 11:34 AM
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