Apple’s £999 iPhone X is ‘enormously UNDERPRICED’, says Warren Buffet

[EPENEX]

Quote

now it's got competition so you can't push the price, but in terms of its utility to people and what they get for a thousand dollars...you can have a dinner party that would cost that, and here this is, and what it does for you, it's incredible.

I know he owns shares in Apple, which is why he's trying to push the price, but this is just stupid. You get the same functionality out of a $100 phone, literally 1/10th the price and same functionality, and I'm pretty sure most people don't spend or have ever thought about spending $1000 on a dinner party which just shows how out of touch he is- that would buy most people groceries for 3+ months.

[SpaceGhostC2C]

36 minutes ago, GatioH said:

I feel like a few people missed his point. He’s saying that the wealthy could (and would) pay high amounts for the ‘highest-end’ phone.

I would love to see his demand estimates. I don't mean what he or his golf buddy would pay, I mean total estimated revenue, which is what Apple would care about (higher price, and I mean way higher price, niche volume phones than the iPhone already exist).

 

Then again, when you say:

Quote

the wealthy could (and would) pay high amounts for the ‘highest-end’ phone.

the way I see it, they already do.

[abazigal]

7 hours ago, Amazonsucks said:

As someone who wears an Omega Seamaster Professional, i can tell you that slave made phones are nothing like Swiss watches...

 

The fact that Foxconn phones are lumped in with them in some peoples' minds is funny and sad at the same time.

 

Buying a watch that has already lasted me 18 years and shows no sign of degrading any time soon seems more like a good value purchase than a superficial one as well. I doubt most people keep an iphone for more than 2 years.

An Apple Watch is going to give me more utility over 2-3 years than a normal watch will in its entire lifetime. I love my Apple Watch and I don’t see myself wearing a non-Smart Watch ever again.  

[Guest]

7 hours ago, Sauron said:

How did he become so rich while being so stupid?

tbh he's just old. Most old people are impressed by electric doors

[ZacoAttaco]

To be fair, he's probably right in that the iPhone (to most normal people) is so indispensable and so heavily relied on that they'd pay whatever to get their hands on it. The way they have this stranglehold on most of the core market means they could really charge whatever they want, and to some extent they do. Everyone knows how overpriced the Macbooks already are, especially for the included hardware.

 

But it would without a doubt be risky, if they did dramatically raised the price I'm sure a lot of their sales would drop off. It's probably one of the few products that could see a significant price rise and would still sell 'reasonably well'. I think 'enormously under-priced' is a bit of stretch though.

 

Sorry if it's an unpopular opinion, but there's probably some truth in what he's saying just from the sheer amount of demand for the iPhone.

 

Hopefully they don't listen to the third richest person in the world...

[Arika]

Warren Buffet is an enormously massive TOOL

[Amazonsucks]

18 minutes ago, abazigal said:

An Apple Watch is going to give me more utility over 2-3 years than a normal watch will in its entire lifetime. I love my Apple Watch and I don’t see myself wearing a non-Smart Watch ever again.  

Enjoy slave made e waste i guess?

 

We live in a time where real tech is conflated with fake tech. Real tech being things lile the IBM z14 and fake tech being an apple watch. 

[Teddy07]

lol he is increasing the stock price because he just bought a bunch of shares 

[Amazonsucks]

Just now, Teddy07 said:

lol he is increasing the stock price because he just bought a bunch of shares 

SEC should get him for it

[schwellmo92]

34 minutes ago, EPENEX said:

I know he owns shares in Apple, which is why he's trying to push the price, but this is just stupid. You get the same functionality out of a $100 phone, literally 1/10th the price and same functionality, and I'm pretty sure most people don't spend or have ever thought about spending $1000 on a dinner party which just shows how out of touch he is- that would buy most people groceries for 3+ months.

You get the same functionality out of a [insert anything here], literally 1/10th the price and same functionality

[mr moose]

23 minutes ago, Amazonsucks said:

SEC should get him for it

It's not illegal to promote a product made buy a company you own shares in. 

 

[ZacoAttaco]

1 hour ago, Amazonsucks said:

We live in a time where real tech is conflated with fake tech. Real tech being things lile the IBM z14 and fake tech being an apple watch. 

An interesting point of view, technology is such a broad term now so a lot of differing devices are being put into one basket. I guess the real difference is consumer electronics/technology vs enterprise/industry technology. But it is a fine line and hard to distinguish.

[kokakolia]

3 hours ago, schwellmo92 said:

You get the same functionality out of a [insert anything here], literally 1/10th the price and same functionality

Ehhh...you’re missing the point. The rich dude thinks that he gets a lot of bang for his buck with his iPhone. It’s his most prized possession. He’d happily pay more because he can afford it. He also thinks that a lot of people can afford to do the same. Thankfully, the market allows us to buy smartphones for $100 with the same functionality. 

[mr moose]

1 hour ago, kokakolia said:

Ehhh...you’re missing the point. The rich dude thinks that he gets a lot of bang for his buck with his iPhone. It’s his most prized possession. He’d happily pay more because he can afford it. He also thinks that a lot of people can afford to do the same. Thankfully, the market allows us to buy smartphones for $100 with the same functionality. 

The reason he is a super rich dude is because he knows what people will pay.  He knows what he is saying and he know why he is saying it. Don't assume for one minute he is deluded about any of this,  else you are likely to earn him his next dollar.

[Salv8 (sam)]

my dick is worth more than apple as a whole, and i checked my dick's net worth and it has aprox. -$∞ (minus infinite dollars)

if my dick is worth that, then how much is apple worth?

do the math fanboys, because i'm quite sure that it's impossible to calculate...

[D13H4RD]

I can see where he's coming from as an investor.

 

But I have a feeling that Apple is really gonna hit a price ceiling much sooner rather than later. $1000 is a lot of money for a phone and I really feel that monthly payments are one big reason why they sell as much as they did. 

 

Take that away and I'm pretty sure that demand will taper off. 

[Tech_Dreamer]

in terms of how it's audience is tailored , i'd say he's right in a certain way , there are people willing to pay double even if it comes to that , because of the sole reason on what it means to them . plus majority of those that own their flagship will buy it just for status appeal.  not for how "low priced" it is, wouldn't make a difference if you know what i mean.

[Amazonsucks]

37 minutes ago, mr moose said:

The reason he is a super rich dude is because he knows what people will pay.  He knows what he is saying and he know why he is saying it. Don't assume for one minute he is deluded about any of this,  else you are likely to earn him his next dollar.

He could be like a lot of other super rich and just be unscrupulous... just because someone can do a thing doesnt mean they always will. Some people have a moral code.

[Quadriplegic]

That's exactly the same thing I say about my €20 headphones!
"Now it's got competition so you can't push the price, but in terms of its utility to people and what they get for a twenty bucks...You can have a BigMac would cost that, and here this is, and what it does for you, it's incredible."

[mark_cameron]

14 hours ago, The_Tron said:

This guy has no idea how many wallets hate him...

 

Apple’s £999 iPhone X is ‘enormously UNDERPRICED’, says Warren Buffet

 

In a new interview, the World's third richest man said Apple could easily get away with charging a lot more for its indispensable gadget, which Buffet values more than his private jet.

Warren Buffet owns around $56billion (£43billion) in Apple shares

 

Well, we have good news Mr. Buffet – Apple could well ratchet up the cost of its newiPhone XS as it releases a separate budget device for everyone who doesn't want to drop a grand on a smartphone.

The trillion-dollar company will unveil its trio of new smartphones on September 12.

 

Apple had the four best-selling phones in the world at the start of this year, with the iPhone X at the top of the heap, according to analysts

Buffet, whose net worth is an estimated $86.7billion (£67.2billion), is the second-largest stockholder in the tech giant through his holding company Berkshire Hathaway, which also owns stakes in Heinz, Coca-Cola and American Express.

Therefore it's no wonder he wants Apple to charge more for its best-selling product.

 

Source: https://www.thesun.co.uk/tech/7161650/apple-iphone-underpriced-warren-buffet/

Consumers determine price.

 

If price exceeds value. Consumers will look for alternatives.

 

 

Posted from my Samsung Galaxy Note 8.

[ZacoAttaco]

20 minutes ago, mark_cameron said:

Consumers determine price.

In most cases you're correct but we're talking about Apple here. Because they're such a well established brand and most people unknowingly rely on their devices they can kind of do whatever they want at this point and the rest of the industry will follow. Sadly.

[mark_cameron]

1 minute ago, ZacoAttaco said:

In most cases you're correct but we're talking about Apple here. Because they're such a well established brand and most people unknowingly rely on their devices they can kind of do whatever they want at this point and the rest of the industry will follow. Sadly.

There are limits to this.

 

As Nvidia is about to find out.

[ZacoAttaco]

1 minute ago, mark_cameron said:

There are limits to this.

 

As Nvidia is about to find out.

You make a good point we will see, although haven't they already sold out? It doesn't mean anything until we see it officially launch and what consumers think.

 

I just realized that I bought an iPad 128GB for $600 AUD (about $432 US). Which is actually rather cheap for an iPad. iPad wasn't selling well and they wanted to get the device into more people's hands, schools were a big focus too. It just shows that when there is less demand for a product the price will lower, but because demand for iPhone is still very high, the price can continue to rise.

[asus killer]

i think what he means is Apple could charge more and the suckers... pardon the customers would pay more for it. I bet he would be right.

[schwellmo92]

4 hours ago, kokakolia said:

Ehhh...you’re missing the point. The rich dude thinks that he gets a lot of bang for his buck with his iPhone. It’s his most prized possession. He’d happily pay more because he can afford it. He also thinks that a lot of people can afford to do the same. Thankfully, the market allows us to buy smartphones for $100 with the same functionality. 

I think you're missing the point, my point was that you can say the same for almost anything in life.

 

"You're silly for paying $1,000,000 for a house! I paid $100,000 for a house and it has the same functionality!"

"You're silly for paying $100,000 for a car! I paid $10,000 for my car and it has the same functionality!"

"You're silly for paying $1000 for a phone! I paid $100 for my phone and it has the same functionality!"

"You're silly for paying $5000 for a laptop! I paid $500 for my laptop and it has the same functionality!"

"You're silly for paying $50 for a steak! I paid $10 for my steak and it's also a steak!"

etc...

etc...

etc...