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Thread ID: 137512 2014-07-17 02:41:00 Reshuffling the deck chairs and chucking a few overboard at MS Webdevguy (17166) PC World Chat
Post ID Timestamp Content User
1379481 2014-07-18 23:55:00 I really liked WP, so much so my wife was on her second one. But due to lack of essential apps or substandard apps for her I have now moved her to android. It took a bit of convincing but now loves it and she can get the apps she wants. Unfortunately I believe its a little to late for WP and that is a shame

Fair enough :)
If I may ask, what apps in particular?
Nick G (16709)
1379482 2014-07-19 00:32:00 Fair enough :)If I may ask, what apps in particular?Kiwibank app, facebook messanger was useless. To name a few. Oh and candycrush plod (107)
1379483 2014-07-19 01:34:00 Kiwibank app, facebook messanger was useless. To name a few. Oh and candycrush

Yea, the messenger app definitely needs some improvement. Has been seeing steady updated though which is nice.
Nick G (16709)
1379484 2014-07-19 02:02:00 Yea, the messenger app definitely needs some improvement. Has been seeing steady updated though which is nice.When I got my current phone S4, I did seriously consider the nokia 1020 but b it was missing to many things. But I really liked the hardware plod (107)
1379485 2014-07-19 02:06:00 Sorry? They should raise their prices to be successful? Apple logic right there, nothing wrong with making very low profits or even a loss on the hardware if its part of a long term plan to improve the market share and number of apps on the platform.

It's not "Apple logic" its business logic. You build a product for a particular market then you set a price for that product that should cover the R&D and production costs and provide you with a profit margin. You take a guess at what you think the market will be willing to pay for the product based on the sales and price information you have.

Microsoft used to sell MS Office software with a 78% profit margin back in the day, purely because they made sure that they had no other competition. Hardware on the other hand usually has a maximum of a 17% profit margin on it and much higher shipping and handling costs involved.
Webdevguy (17166)
1379486 2014-07-19 02:42:00 It's not "Apple logic" its business logic. You build a product for a particular market then you set a price for that product that should cover the R&D and production costs and provide you with a profit margin. You take a guess at what you think the market will be willing to pay for the product based on the sales and price information you have.

Microsoft used to sell MS Office software with a 78% profit margin back in the day, purely because they made sure that they had no other competition. Hardware on the other hand usually has a maximum of a 17% profit margin on it and much higher shipping and handling costs involved.

And yet, you still haven't quite explained why having a low profit margin means they aren't going to be successful?
Nick G (16709)
1379487 2014-07-19 03:45:00 And yet, you still haven't quite explained why having a low profit margin means they aren't going to be successful?
Having a low profit margin doesn't stop you from being successful, it just means that companies with higher profit margins on their products and services will be more successful than you and will probably have more money for more deals and more dividends for their share holders than your low margin company.
Webdevguy (17166)
1379488 2014-07-19 03:59:00 Having a low profit margin doesn't stop you from being successful, it just means that companies with higher profit margins on their products and services will be more successful than you and will probably have more money for more deals and more dividends for their share holders than your low margin company.

I'm sorry, but that's complete and utter crap. Ever heard of low margin, high volume sales? Or, as is likely in this case, low margins to enable Microsoft to take a more dominant market position.

Just because Apple only plays the high margin game, doesn't mean it's the only way ;)
Nick G (16709)
1379489 2014-07-19 04:29:00 I'm sorry, but that's complete and utter crap. Ever heard of low margin, high volume sales? Or, as is likely in this case, low margins to enable Microsoft to take a more dominant market position.

Just because Apple only plays the high margin game, doesn't mean it's the only way ;)
Yes I am familiar with low margin high volume sales. It is often what companies do when they are wanting to gain market share without making a lot of profit in the process. It's very common in highly competitive markets.
I'm not doubting that Microsoft is aiming for high volume low margin product as that is how they are trying to compete with the lower end Android phones in developing markets.
Webdevguy (17166)
1379490 2014-07-19 04:42:00 I'm sorry, but that's complete and utter crap. Ever heard of low margin, high volume sales? Or, as is likely in this case, low margins to enable Microsoft to take a more dominant market position.

Just because Apple only plays the high margin game, doesn't mean it's the only way ;)

Agree. Samsung has a range of mobile phone prices from , 50 < to > 800. Budget to high margin, including 4 more budget phones (gadgets.ndtv.com) (yeah - more galaxy's), for emerging markets. So I think more global reach and profitability from low end mobiles. I read a while back that apple also profits from comprehensive telco relationships in the US, rather than just direct high end sells.

But creating any kind of scaleable hardware is hard relative to software (as noted by above members), according to re-known Venture Capitalist Marc Andreessen. Engineering, designing, tooling, iterations, distributing, certified approved suppliers. outsources and re-sellers, marketing, etc. Hardware is the New Software (techcrunch.com) from Tech Crunch.
kahawai chaser (3545)
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