Archive for the Economics Category

iPod Touch - pointless garbage

Posted in Economics, Gadgets, toys & websites on 5 Nov 2007 by dem1972

No, not the iPod Touch itself - its on my gadget list. No, having spent a few moments going round the world’s Apple stores (online) it appears that some countries are more of a rip off than others. Now I appreciated that it depends on how strong the currency is, so my conversions are done by taking the local price and converting to USD using xe.com:

iPod Touch 16GB, Apple Store Website
US = 400 USD (not incl. tax)
UK = 560 USD
France = 592 USD
Australia = 504 USD
Germany = 577 USD
Hong Kong = 412 USD
Singapore = 481 USD
Taiwan = 442 USD
Denmark = 582 USD
Czech Republic = 686 USD

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Console Wars

Posted in Economics, Gadgets, toys & websites on 22 Feb 2007 by dem1972

Here is quite an interesting read about the problems that each of the players in “console wars” face. The very last paragraph sums it all up…

One note here is that there does not have to be a winner and a loser, there can be multiple winners or losers. If all of the consoles reach a critical mass, they will all win. If none sell enough, they will all lose, so don’t assume that one winner means another loser.

Based on sales reports, Nintendo should once again rise from the ashes that was the Game Cube, assuming of course you don’t factor in their GameBoy miracle. Sony has probably spent the PS2 profits on the PS3, and since the PSP is floundering there is little joy in the news for Sony shareholders. Personally I want a new phone so don’t really care too much about console wars, but the article is interesting from an economics point of view.

[Console death spiral - The Inquirer]

*Update. Part 2 of the article has been published

[Console death spiral - part 2]

Missed this one

Posted in Economics, News on 14 Feb 2007 by dem1972

Somehow I missed this story…

BRITAIN has come only 37th in a league of the world’s best places to live, behind Panama, Mexico and Argentina.

Its relatively poor standing was blamed on its bad weather, high cost of living, poor transport infrastructure and health service.

 

As a result, Britain was narrowly beaten even by former eastern bloc states Bulgaria, the Czech Republic and Slovakia, which were judged to have better weather and a lower cost of living. However, the UK scored higher for its economy and social freedoms.

[The Scotsman]

Lower costs of living and better weather. WTF!!! Who compiled this nonsense. The winter right now in CZ is the same as in UK, and the summers are really hot and without aircon. Cost of living! What non-sense, other than beer and bread, most if not all things in CZ and SK are more expensive and you should also take into consideration the relative income per capita. I found buying stuff in UK cheaper, everyday stuff not just luxuries.

Well I found a link to the report, judge for yourself.

[International Living]

The cost of an Apple iPhone

Posted in Economics, Gadgets, toys & websites, Science on 19 Jan 2007 by dem1972

Someone, somewhere, without the phone being released to the public, has come up with a price list of how much the Apple phone will cost to manufacture, which is somewhere around 250 USD. [Gizmodo - Apple iPhone]

Now this poses some interesting issues:

  • Does Apple know this? Maybe they are being charged a premium to manufacture this device are are paying more than. This will come as a shock to Apple if its true
  • Assume Apple does know this, and it really costs less because they are ordering bulk plus future orders keep the manufacturer keen to keep Apple happy. Again assume that the retail price - the actual price quoted in their presentation - is the price people will pay, this means that Apple sells at a premium and Cingular isn’t subsidising the phone.
  • If Cingular are subsidising the phone, then Apple are making even more per unit, which means its in Cingular’s interest to make the phone popular. Same applies to other carriers. But, if Apple still makes money per unit sold, then would they also sell units without contract for the same price. Either way Apple sells units. Are they interested in unit take up or do they have another agenda, lets suggest learning curve for producing mobile handsets.
  • In time will the retail price of the units come down? This would affect any exclusive image the phone would have (The Motorola Razr effect) but means the phone is widely used, more people buying into the Apple sub-culture.
  • Finally the operating system. Would Apple gain from selling OSX for mobiles to any manufacturer? They would certainly gain from allowing more 3rd party software to be developed, or are they more interested in selling desirable hardware.
  • Then again, is it really going to sell. True, its a fabulous piece of engineering, however, its an awful lot of money to spend on a phone that will be even more tempting for thieves to steal, just like iPod thefts. Do you want the hassle and trauma of having your fab phone stolen.

Personally, I find it too expensive for a gadget that will never meet its full potential. Maybe the third generation iPhone (given the evolution of the iPod) might have appeal, assuming the 3G version comes out. But the question that lingers in my mind is how much does it really cost to make per unit :)