How do phone manufactures come up with prices of smart phones?
A 40 inch smart full HDTV with similar or better features than a high end Smart phone (iphone,Samsung etc) with a meager screen costs the same or less. Who is fooling who here? Laptops are much smaller than desktops and cost less than equally spec'd desktop. The desktop requires more materials to build but costs more. Miniaturization or not phones are over priced primarily as a result of consumer spending trends. Regards, Job Muriuki, Skype: heviejob
The price of a commodity/service bears only some loose relation to the cost of production and the like. It's determined more by how much the market is willing to pay for it. Remember the 32/= per minute call charges a few years back, and the subsequent massive drops in calling rates? Tony.
+1 @ Tony. If people are willing to buy my phone at 100k and I make it at 10k I'll sell at 100 :) Then they get tired and I say wohoo, price reduction 97k! :) :) On 26 March 2015 at 22:08, Tony Likhanga via skunkworks < skunkworks@lists.my.co.ke> wrote:
The price of a commodity/service bears only some loose relation to the cost of production and the like. It's determined more by how much the market is willing to pay for it. Remember the 32/= per minute call charges a few years back, and the subsequent massive drops in calling rates?
Tony.
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Customer: Do you have Item X? Shopkeeper: Yeah. It goes for 50 bob Customer: You don't have the one for 55 bob Shopkeeper: (Removes 50bob sticker on Item X and replaces it with a 55 bob sticker). Here it is! I have been following the Asus Zenphone 2 story (64GB storage, 4GB RAM, Intel Atom, etc etc) and going for less than 300 USD. That is how much the phones should cost. The rest is just the name and minor cosmetics On Fri, Mar 27, 2015 at 7:20 AM, Jangita via skunkworks < skunkworks@lists.my.co.ke> wrote:
+1 @ Tony.
If people are willing to buy my phone at 100k and I make it at 10k I'll sell at 100 :) Then they get tired and I say wohoo, price reduction 97k! :) :)
On 26 March 2015 at 22:08, Tony Likhanga via skunkworks < skunkworks@lists.my.co.ke> wrote:
The price of a commodity/service bears only some loose relation to the cost of production and the like. It's determined more by how much the market is willing to pay for it. Remember the 32/= per minute call charges a few years back, and the subsequent massive drops in calling rates?
Tony.
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I suspect it's not that simple, sure a Samsung 42inch tv and phone cost the same, but they perform very different things. The software on the phone is vastly more expensive to license, create and test compared to the tv. Not to mention the fact that shrinking the components down while ensuring they don't overheat must be an engineering feat on its own. TV's have non of these issues, and the software is much simpler, my old plasma tv probably had less than 256mb of ram. And of course, if people are willing to pay more for it, then charge more. The mark up on an iphone is like $200, on each phone. </end> Regards, John K. On 24 March 2015 at 23:17, Job Muriuki via skunkworks < skunkworks@lists.my.co.ke> wrote:
A 40 inch smart full HDTV with similar or better features than a high end Smart phone (iphone,Samsung etc) with a meager screen costs the same or less. Who is fooling who here?
Laptops are much smaller than desktops and cost less than equally spec'd desktop. The desktop requires more materials to build but costs more. Miniaturization or not phones are over priced primarily as a result of consumer spending trends.
Regards, Job Muriuki,
Skype: heviejob
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John K. You are missing a <end> tag for your </end> :) ᐧ On 27 March 2015 at 12:07, John K. via skunkworks <skunkworks@lists.my.co.ke
wrote:
I suspect it's not that simple, sure a Samsung 42inch tv and phone cost the same, but they perform very different things. The software on the phone is vastly more expensive to license, create and test compared to the tv. Not to mention the fact that shrinking the components down while ensuring they don't overheat must be an engineering feat on its own. TV's have non of these issues, and the software is much simpler, my old plasma tv probably had less than 256mb of ram.
And of course, if people are willing to pay more for it, then charge more. The mark up on an iphone is like $200, on each phone.
</end>
Regards, John K.
On 24 March 2015 at 23:17, Job Muriuki via skunkworks < skunkworks@lists.my.co.ke> wrote:
A 40 inch smart full HDTV with similar or better features than a high end Smart phone (iphone,Samsung etc) with a meager screen costs the same or less. Who is fooling who here?
Laptops are much smaller than desktops and cost less than equally spec'd desktop. The desktop requires more materials to build but costs more. Miniaturization or not phones are over priced primarily as a result of consumer spending trends.
Regards, Job Muriuki,
Skype: heviejob
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Here you go. :) <end> Regards, John K. On 27 March 2015 at 12:13, Jangita via skunkworks <skunkworks@lists.my.co.ke
wrote:
John K. You are missing a <end> tag for your </end> :) ᐧ
On 27 March 2015 at 12:07, John K. via skunkworks < skunkworks@lists.my.co.ke> wrote:
I suspect it's not that simple, sure a Samsung 42inch tv and phone cost the same, but they perform very different things. The software on the phone is vastly more expensive to license, create and test compared to the tv. Not to mention the fact that shrinking the components down while ensuring they don't overheat must be an engineering feat on its own. TV's have non of these issues, and the software is much simpler, my old plasma tv probably had less than 256mb of ram.
And of course, if people are willing to pay more for it, then charge more. The mark up on an iphone is like $200, on each phone.
</end>
Regards, John K.
On 24 March 2015 at 23:17, Job Muriuki via skunkworks < skunkworks@lists.my.co.ke> wrote:
A 40 inch smart full HDTV with similar or better features than a high end Smart phone (iphone,Samsung etc) with a meager screen costs the same or less. Who is fooling who here?
Laptops are much smaller than desktops and cost less than equally spec'd desktop. The desktop requires more materials to build but costs more. Miniaturization or not phones are over priced primarily as a result of consumer spending trends.
Regards, Job Muriuki,
Skype: heviejob
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Same thing OnePlus were aiming for with their flagship killer campaign. Basically package the same components as the more famous brands and sell it at half the cost. And they still make a profit. Then again there's the argument that Samsung, Apple et al have the marketing and distribution chains that also cost money to run and maintain. Regards, Alex On Fri, Mar 27, 2015 at 1:22 PM, John K. via skunkworks < skunkworks@lists.my.co.ke> wrote:
Here you go. :)
<end>
Regards, John K.
On 27 March 2015 at 12:13, Jangita via skunkworks < skunkworks@lists.my.co.ke> wrote:
John K. You are missing a <end> tag for your </end> :) ᐧ
On 27 March 2015 at 12:07, John K. via skunkworks < skunkworks@lists.my.co.ke> wrote:
I suspect it's not that simple, sure a Samsung 42inch tv and phone cost the same, but they perform very different things. The software on the phone is vastly more expensive to license, create and test compared to the tv. Not to mention the fact that shrinking the components down while ensuring they don't overheat must be an engineering feat on its own. TV's have non of these issues, and the software is much simpler, my old plasma tv probably had less than 256mb of ram.
And of course, if people are willing to pay more for it, then charge more. The mark up on an iphone is like $200, on each phone.
</end>
Regards, John K.
On 24 March 2015 at 23:17, Job Muriuki via skunkworks < skunkworks@lists.my.co.ke> wrote:
A 40 inch smart full HDTV with similar or better features than a high end Smart phone (iphone,Samsung etc) with a meager screen costs the same or less. Who is fooling who here?
Laptops are much smaller than desktops and cost less than equally spec'd desktop. The desktop requires more materials to build but costs more. Miniaturization or not phones are over priced primarily as a result of consumer spending trends.
Regards, Job Muriuki,
Skype: heviejob
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You will notice differently priced smartphones with similar specs will be have differently - look under the hood - the processor/coprocessor, storage, camera sensor, etc . These are details you are likely not to get. However IMO, high end and mid end devices do not have much in difference to warrant the price difference. However, for low cost smartphones, there is some difference. On Fri, 27 Mar 2015 at 13:12 Alex Ngatia via skunkworks < skunkworks@lists.my.co.ke> wrote:
Same thing OnePlus were aiming for with their flagship killer campaign. Basically package the same components as the more famous brands and sell it at half the cost. And they still make a profit. Then again there's the argument that Samsung, Apple et al have the marketing and distribution chains that also cost money to run and maintain.
Regards,
Alex
On Fri, Mar 27, 2015 at 1:22 PM, John K. via skunkworks < skunkworks@lists.my.co.ke> wrote:
Here you go. :)
<end>
Regards, John K.
On 27 March 2015 at 12:13, Jangita via skunkworks < skunkworks@lists.my.co.ke> wrote:
John K. You are missing a <end> tag for your </end> :) ᐧ
On 27 March 2015 at 12:07, John K. via skunkworks < skunkworks@lists.my.co.ke> wrote:
I suspect it's not that simple, sure a Samsung 42inch tv and phone cost the same, but they perform very different things. The software on the phone is vastly more expensive to license, create and test compared to the tv. Not to mention the fact that shrinking the components down while ensuring they don't overheat must be an engineering feat on its own. TV's have non of these issues, and the software is much simpler, my old plasma tv probably had less than 256mb of ram.
And of course, if people are willing to pay more for it, then charge more. The mark up on an iphone is like $200, on each phone.
</end>
Regards, John K.
On 24 March 2015 at 23:17, Job Muriuki via skunkworks < skunkworks@lists.my.co.ke> wrote:
A 40 inch smart full HDTV with similar or better features than a high end Smart phone (iphone,Samsung etc) with a meager screen costs the same or less. Who is fooling who here?
Laptops are much smaller than desktops and cost less than equally spec'd desktop. The desktop requires more materials to build but costs more. Miniaturization or not phones are over priced primarily as a result of consumer spending trends.
Regards, Job Muriuki,
Skype: heviejob
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Price does not depend on cost of production but more so on willingness to pay. James Sent from a mobile device On Mar 27, 2015 11:09 AM, "John K. via skunkworks" < skunkworks@lists.my.co.ke> wrote:
I suspect it's not that simple, sure a Samsung 42inch tv and phone cost the same, but they perform very different things. The software on the phone is vastly more expensive to license, create and test compared to the tv. Not to mention the fact that shrinking the components down while ensuring they don't overheat must be an engineering feat on its own. TV's have non of these issues, and the software is much simpler, my old plasma tv probably had less than 256mb of ram.
And of course, if people are willing to pay more for it, then charge more. The mark up on an iphone is like $200, on each phone.
</end>
Regards, John K.
On 24 March 2015 at 23:17, Job Muriuki via skunkworks < skunkworks@lists.my.co.ke> wrote:
A 40 inch smart full HDTV with similar or better features than a high end Smart phone (iphone,Samsung etc) with a meager screen costs the same or less. Who is fooling who here?
Laptops are much smaller than desktops and cost less than equally spec'd desktop. The desktop requires more materials to build but costs more. Miniaturization or not phones are over priced primarily as a result of consumer spending trends.
Regards, Job Muriuki,
Skype: heviejob
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Job, Now that you have made this apt comparison, am glad to get a justification that my Tecno phone is not too "CHEAP". *./Kamonye* On 24 March 2015 at 23:17, Job Muriuki via skunkworks < skunkworks@lists.my.co.ke> wrote:
A 40 inch smart full HDTV with similar or better features than a high end Smart phone (iphone,Samsung etc) with a meager screen costs the same or less. Who is fooling who here?
Laptops are much smaller than desktops and cost less than equally spec'd desktop. The desktop requires more materials to build but costs more. Miniaturization or not phones are over priced primarily as a result of consumer spending trends.
Regards, Job Muriuki,
Skype: heviejob
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There is something called PATENT licences. Nearly 90% of tiny interlinked tech on modern smartphones needs licenses from patent owners. Mainstream companies pay the patents. Samsung, Apple, HTC, Sony, Nokia. ... "Imitate then innovate" kind of brands just pirate the licences with no care in the world. It's easy, you will not see patent thieves on mainstream stores in the developed markets because it is illegal to sell them. But you will find the patent thieves in Kenya on all major outlets. ______________________ Mwendwa Kivuva, Nairobi, Kenya "There are some men who lift the age they inhabit, till all men walk on higher ground in that lifetime." - Maxwell Anderson On 30 March 2015 at 13:18, Kevin K. Kamonye via skunkworks < skunkworks@lists.my.co.ke> wrote:
Job,
Now that you have made this apt comparison, am glad to get a justification that my Tecno phone is not too "CHEAP".
*./Kamonye*
On 24 March 2015 at 23:17, Job Muriuki via skunkworks < skunkworks@lists.my.co.ke> wrote:
A 40 inch smart full HDTV with similar or better features than a high end Smart phone (iphone,Samsung etc) with a meager screen costs the same or less. Who is fooling who here?
Laptops are much smaller than desktops and cost less than equally spec'd desktop. The desktop requires more materials to build but costs more. Miniaturization or not phones are over priced primarily as a result of consumer spending trends.
Regards, Job Muriuki,
Skype: heviejob
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Mwendwa, I have looked up the patent side of things and am quite surprised that Android is Microsoft's cash money minting plant. Sent on mobile. On 30 Mar 2015 14:21, "Mwendwa Kivuva" <Kivuva@transworldafrica.com> wrote:
There is something called PATENT licences. Nearly 90% of tiny interlinked tech on modern smartphones needs licenses from patent owners. Mainstream companies pay the patents. Samsung, Apple, HTC, Sony, Nokia. ...
"Imitate then innovate" kind of brands just pirate the licences with no care in the world. It's easy, you will not see patent thieves on mainstream stores in the developed markets because it is illegal to sell them. But you will find the patent thieves in Kenya on all major outlets.
______________________ Mwendwa Kivuva, Nairobi, Kenya
"There are some men who lift the age they inhabit, till all men walk on higher ground in that lifetime." - Maxwell Anderson
On 30 March 2015 at 13:18, Kevin K. Kamonye via skunkworks < skunkworks@lists.my.co.ke> wrote:
Job,
Now that you have made this apt comparison, am glad to get a justification that my Tecno phone is not too "CHEAP".
*./Kamonye*
On 24 March 2015 at 23:17, Job Muriuki via skunkworks < skunkworks@lists.my.co.ke> wrote:
A 40 inch smart full HDTV with similar or better features than a high end Smart phone (iphone,Samsung etc) with a meager screen costs the same or less. Who is fooling who here?
Laptops are much smaller than desktops and cost less than equally spec'd desktop. The desktop requires more materials to build but costs more. Miniaturization or not phones are over priced primarily as a result of consumer spending trends.
Regards, Job Muriuki,
Skype: heviejob
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Also, do not established brands have profit margins to defend - it's hard to get growth when you are a KSh. 1 trillion company compared to a KSh. 100 million one. Hence they will get into the habit of offering lesser specs to make more profits every device. To make up, they will spend a lot of money on advertising and brand building. I have found Tecno to be better value for money than a certain firm that promises the Milky Way, or something. On Mon, 30 Mar 2015 at 22:18 Kevin K. Kamonye via skunkworks < skunkworks@lists.my.co.ke> wrote:
Mwendwa,
I have looked up the patent side of things and am quite surprised that Android is Microsoft's cash money minting plant.
Sent on mobile. On 30 Mar 2015 14:21, "Mwendwa Kivuva" <Kivuva@transworldafrica.com> wrote:
There is something called PATENT licences. Nearly 90% of tiny interlinked tech on modern smartphones needs licenses from patent owners. Mainstream companies pay the patents. Samsung, Apple, HTC, Sony, Nokia. ...
"Imitate then innovate" kind of brands just pirate the licences with no care in the world. It's easy, you will not see patent thieves on mainstream stores in the developed markets because it is illegal to sell them. But you will find the patent thieves in Kenya on all major outlets.
______________________ Mwendwa Kivuva, Nairobi, Kenya
"There are some men who lift the age they inhabit, till all men walk on higher ground in that lifetime." - Maxwell Anderson
On 30 March 2015 at 13:18, Kevin K. Kamonye via skunkworks < skunkworks@lists.my.co.ke> wrote:
Job,
Now that you have made this apt comparison, am glad to get a justification that my Tecno phone is not too "CHEAP".
*./Kamonye*
On 24 March 2015 at 23:17, Job Muriuki via skunkworks < skunkworks@lists.my.co.ke> wrote:
A 40 inch smart full HDTV with similar or better features than a high end Smart phone (iphone,Samsung etc) with a meager screen costs the same or less. Who is fooling who here?
Laptops are much smaller than desktops and cost less than equally spec'd desktop. The desktop requires more materials to build but costs more. Miniaturization or not phones are over priced primarily as a result of consumer spending trends.
Regards, Job Muriuki,
Skype: heviejob
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When you talk about patents it makes sense but then again looking at say Samsung and their phone line, you notice they all look very similar meaning they are riding on design or even patent. The only difference is a smaller screen or less ram or a different CPU but nothing mind blowing to justify the price tag. Looking at the zenfone 2 from ASUS and its price tag you can tell phones are somehow over priced. Regards, Job Muriuki, Skype: heviejob On Tue, Mar 31, 2015 at 9:44 AM, Dennis Kioko via skunkworks < skunkworks@lists.my.co.ke> wrote:
Also, do not established brands have profit margins to defend - it's hard to get growth when you are a KSh. 1 trillion company compared to a KSh. 100 million one.
Hence they will get into the habit of offering lesser specs to make more profits every device. To make up, they will spend a lot of money on advertising and brand building.
I have found Tecno to be better value for money than a certain firm that promises the Milky Way, or something.
On Mon, 30 Mar 2015 at 22:18 Kevin K. Kamonye via skunkworks < skunkworks@lists.my.co.ke> wrote:
Mwendwa,
I have looked up the patent side of things and am quite surprised that Android is Microsoft's cash money minting plant.
Sent on mobile. On 30 Mar 2015 14:21, "Mwendwa Kivuva" <Kivuva@transworldafrica.com> wrote:
There is something called PATENT licences. Nearly 90% of tiny interlinked tech on modern smartphones needs licenses from patent owners. Mainstream companies pay the patents. Samsung, Apple, HTC, Sony, Nokia. ...
"Imitate then innovate" kind of brands just pirate the licences with no care in the world. It's easy, you will not see patent thieves on mainstream stores in the developed markets because it is illegal to sell them. But you will find the patent thieves in Kenya on all major outlets.
______________________ Mwendwa Kivuva, Nairobi, Kenya
"There are some men who lift the age they inhabit, till all men walk on higher ground in that lifetime." - Maxwell Anderson
On 30 March 2015 at 13:18, Kevin K. Kamonye via skunkworks < skunkworks@lists.my.co.ke> wrote:
Job,
Now that you have made this apt comparison, am glad to get a justification that my Tecno phone is not too "CHEAP".
*./Kamonye*
On 24 March 2015 at 23:17, Job Muriuki via skunkworks < skunkworks@lists.my.co.ke> wrote:
A 40 inch smart full HDTV with similar or better features than a high end Smart phone (iphone,Samsung etc) with a meager screen costs the same or less. Who is fooling who here?
Laptops are much smaller than desktops and cost less than equally spec'd desktop. The desktop requires more materials to build but costs more. Miniaturization or not phones are over priced primarily as a result of consumer spending trends.
Regards, Job Muriuki,
Skype: heviejob
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<damn_it_Quora> How can I manufacture a smart phone in Kenya and determine its price vis a vis the global market rate? </damn_it_Quora> 1. Get lots and lots of money 2. Concept and Prototyping - Hire a global management consultancy agency to take you through *detailed* steps of manufacturing a smart phone and all associated costs. 3. Develop a Prototype and review 4. Make a decision whether you want to invest your money in this made in Kenya smartphone 5. IF YES 1. Purchase or rent all infrastructure required to setup a plant together with patents, licenses, etc 2. Hire the Management team 3. Train key staff in production process 4. Hire the rest of the team 5. Start production 6. Partner with ,gov, banks, mobile operators or chip makers as part of your overall strategy to penetrate the market 6. ELSE IF figure out what to do with all your money On Tue, Mar 24, 2015 at 11:17 PM, Job Muriuki via skunkworks < skunkworks@lists.my.co.ke> wrote:
A 40 inch smart full HDTV with similar or better features than a high end Smart phone (iphone,Samsung etc) with a meager screen costs the same or less. Who is fooling who here?
Laptops are much smaller than desktops and cost less than equally spec'd desktop. The desktop requires more materials to build but costs more. Miniaturization or not phones are over priced primarily as a result of consumer spending trends.
Regards, Job Muriuki,
Skype: heviejob
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You have to factor Cost of sale - Buying materials for the phone assembly Expenses - Salary for employees (technical and Non technical), office admin, transport(distribution) Future research for the phones development The your Mark-up or profit margin On Thu, Apr 2, 2015 at 6:23 PM, Patrick Kariuki via skunkworks < skunkworks@lists.my.co.ke> wrote:
<damn_it_Quora> How can I manufacture a smart phone in Kenya and determine its price vis a vis the global market rate? </damn_it_Quora>
1. Get lots and lots of money 2. Concept and Prototyping - Hire a global management consultancy agency to take you through *detailed* steps of manufacturing a smart phone and all associated costs. 3. Develop a Prototype and review 4. Make a decision whether you want to invest your money in this made in Kenya smartphone 5. IF YES 1. Purchase or rent all infrastructure required to setup a plant together with patents, licenses, etc 2. Hire the Management team 3. Train key staff in production process 4. Hire the rest of the team 5. Start production 6. Partner with ,gov, banks, mobile operators or chip makers as part of your overall strategy to penetrate the market 6. ELSE IF figure out what to do with all your money
On Tue, Mar 24, 2015 at 11:17 PM, Job Muriuki via skunkworks < skunkworks@lists.my.co.ke> wrote:
A 40 inch smart full HDTV with similar or better features than a high end Smart phone (iphone,Samsung etc) with a meager screen costs the same or less. Who is fooling who here?
Laptops are much smaller than desktops and cost less than equally spec'd desktop. The desktop requires more materials to build but costs more. Miniaturization or not phones are over priced primarily as a result of consumer spending trends.
Regards, Job Muriuki,
Skype: heviejob
_______________________________________________ skunkworks mailing list skunkworks@lists.my.co.ke ------------ List info, subscribe/unsubscribe http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks ------------
Skunkworks Rules http://my.co.ke/phpbb/viewtopic.php?f=24&t=94 ------------ Other services @ http://my.co.ke
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-- Best Regards, Stephen Munguti. +254720425104
participants (12)
-
Alex Ngatia -
Bwana Lawi -
Dennis Kioko -
James Kagwe -
Jangita -
Job Muriuki -
John K. -
Kevin K. Kamonye -
Mwendwa Kivuva -
Patrick Kariuki -
Stephen Munguti -
Tony Likhanga