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

[IceCold008]

Crapple. I would pay a tenner for it. Makes for a good door stop.

[Commodus]

3 hours ago, Mooshi said:

By that logic, a can opener is worth millions given the utility and how cheap they are. How did this guy get rich again..?

By knowing that what he just said isn't a literal call to raise iPhone prices, but rather a reflection of the iPhone's utility?  Buffett doesn't always have the Midas touch, but he does use his words carefully.

[CatTNT]

On 9/3/2018 at 11:58 AM, 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/

i just wrote a paragraph, deleted it, all im gonna say he is stupid

[Trik'Stari]

11 hours ago, abazigal said:

Apple's profits come primarily from hardware. It's not so simple as to say "let's cut the price so we can sell more units", when doing so runs the risk of compromising their brand name and overall profitability. 

 

I think that with regards to Apple's business model, there is little question that Apple's current approach makes the most sense. Apple seems to have more or less reached market saturation with regards to sales of iPhones, which means that the next best move is to further monetise your existing user base. In short, Apple is as much a prisoner of their success, in that in order to maintain their profitability, there is really only one strategy which makes sense. 

 

Apple seems to be doing just that, between more expensive iPhones, services (AppleCare, apple music, iCloud, iTunes content, apps), accessories (AirPods, Apple Watch, Apple TV, homepod, airpower, cases etc). Everything is centred around building an ecosystem around the iPhone, and monetising every aspect of it. 

 

And Apple is likely able to get away with this because they have aggregated the best customers, who have proven willing to spend on Apple products and services. So yeah, more expensive iPhones absolutely make every bit of sense from a business perspective. 

That was roughly my point, albeit said in a much better and more precise and accurate way.

[LAwLz]

It seems to me like Warren believes that thing's worth are based on how much we use and rely on them, which I disagree with. By that logic, water would be far more expensive than oil.

 

Luckily for us, supply and demand also plays a very important role in determining the value of something. The supply of iPhones Xs is far greater than the supply of <model of private jet> he talks about.

 

This seems like some "shower though" comment from Warren about how much he values his phone and people are reading way too much into it.

 

 

Also, I think it's kind of funny that his private jet is named "The Indispensable", and yet here he is talking about how he would rather give that up over his phone.

[Commodus]

11 hours ago, LAwLz said:

It seems to me like Warren believes that thing's worth are based on how much we use and rely on them, which I disagree with. By that logic, water would be far more expensive than oil.

 

Luckily for us, supply and demand also plays a very important role in determining the value of something. The supply of iPhones Xs is far greater than the supply of <model of private jet> he talks about.

 

This seems like some "shower though" comment from Warren about how much he values his phone and people are reading way too much into it.

 

 

Also, I think it's kind of funny that his private jet is named "The Indispensable", and yet here he is talking about how he would rather give that up over his phone.

That "shower thought" aspect is key.  So, so many people here have misinterpreted it as "OMG Buffett wants Apple to raise the price of the iPhone!" when he's just talking about how the worth of a smartphone extends beyond its actual price.  And in a basic way, he's right -- it's funny how we'll pay $1,500 for a gaming PC whose full potential might only only used a couple hours a day (if that), but moan about paying $1,000 for a device that's with us virtually all the time and serves as a communicator, camera, media player, game machine and more.  Yeah, your phone can't play Fortnite at 4K, but that's a nice-to-have luxury.

[mynameisjuan]

12 minutes ago, Commodus said:

That "shower thought" aspect is key.  So, so many people here have misinterpreted it as "OMG Buffett wants Apple to raise the price of the iPhone!" when he's just talking about how the worth of a smartphone extends beyond its actual price.  And in a basic way, he's right -- it's funny how we'll pay $1,500 for a gaming PC whose full potential might only only used a couple hours a day (if that), but moan about paying $1,000 for a device that's with us virtually all the time and serves as a communicator, camera, media player, game machine and more.  Yeah, your phone can't play Fortnite at 4K, but that's a nice-to-have luxury.

I base most my purchases off the cost on how much I use it and if I dont use it a few months later its going on sale. 

 

But yes, people are willing to pay $2000 for a facbook machine but  raise pitch forks to a phone half the cost. 

 

Yeah, its still a steep price and not everyone can afford a $1000 phone but its not that outrageous. I am definitely not saying it should increase though even though my phone is attached to my hip next to 24hours a day.

[FredyCH]

They could easily sell it at 1299$ and sell not a lot less than today.

But they would need to make the cheaper models more expensive aswell.

 

There were expensive phones even before smartphones arrived.

 

I think if someone wants an iphone x he will pay the extra money. I own an iphone x and i wouldnt miss it if i would go back to an 8.

[Brooksie359]

On 9/4/2018 at 12:14 AM, D13H4RD2L1V3 said:

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. 

The majority if my family had only used iPhones. I was the only one to use android because the rest of my family thought android was too hard to use. With the price of the new iPhones my family actually has moved to android which honestly says alot. I think this guy doesn't realize that people could simply switch to a different smartphone that does the same thing for less. 

[abazigal]

26 minutes ago, Brooksie359 said:

The majority if my family had only used iPhones. I was the only one to use android because the rest of my family thought android was too hard to use. With the price of the new iPhones my family actually has moved to android which honestly says alot. I think this guy doesn't realize that people could simply switch to a different smartphone that does the same thing for less. 

I think the main fallacy with this sort of analysis is that you are looking at Apple and competing products strictly from a spec or dollars-and-cents perspective. 

 

This argument (of there being cheaper android phones available) is nothing new. It reached fever pitch at around 2013, when people were convinced that Apple was destined to die at the hands of way cheaper android alternatives. Yet ironically enough, Apple would go on to release even more expensive iPhones, and proceed to sell even more units for it. 

 

So there is something about conventional economic theory which simply does not apply to Apple. That people still gravitate towards Apple products despite there being cheaper options available. 

 

One reason, I believe, is due to the inherent stickiness of the Apple ecosystem. That, together with iOS, creates a unique user experience that can only be had on iOS devices. So if you want this Apple experience, the only option is to pay whatever Apple's asking price is. 

 

Another reason is that Apple has aggregated the best customers (defined as those with more disposable income and a higher propensity to spend), which in turn makes them more willing to purchase Apple products. I think it says a lot when Apple evidently has no problems selling Apple watches at their current prices. 

 

I am currently using an iPhone 8+, Apple Watch and AirPods. I also have an iPad and Apple Pencil, plus a 5k iMac and MBA. I am subscribed to Apple Music, sync everything via iCloud, and have a bunch of apple tvs lying around the house. I have sunk hundreds of dollars into apps. I won't be able to switch out any of my devices without breaking the hard-won integration that Apple is (in)famous for. In a sense, I am responsible for landing myself in such a situation, but since everything is working so well for me, I don't regret my decision to embrace the apple ecosystem as thoroughly as I have. So it costs more overall, but to me, it's been worth every cent. And I see myself continuing to stick with Apple products for a good many years to come. 

 

I believe Warren Buffet gets it. Apple has spent many years building a defensive moat around its products, and for many users, it's not so straightforward as to say "This android phone is better because it has better specs and/or costs less". 

[Brooksie359]

2 minutes ago, abazigal said:

I think the main fallacy with this sort of analysis is that you are looking at Apple and competing products strictly from a spec or dollars-and-cents perspective. 

 

This argument (of there being cheaper android phones available) is nothing new. It reached fever pitch at around 2013, when people were convinced that Apple was destined to die at the hands of way cheaper android alternatives. Yet ironically enough, Apple would go on to release even more expensive iPhones, and proceed to sell even more units for it. 

 

So there is something about conventional economic theory which simply does not apply to Apple. That people still gravitate towards Apple products despite there being cheaper options available. 

 

One reason, I believe, is due to the inherent stickiness of the Apple ecosystem. That, together with iOS, creates a unique user experience that can only be had on iOS devices. So if you want this Apple experience, the only option is to pay whatever Apple's asking price is. 

 

Another reason is that Apple has aggregated the best customers (defined as those with more disposable income and a higher propensity to spend), which in turn makes them more willing to purchase Apple products. I think it says a lot when Apple evidently has no problems selling Apple watches at their current prices. 

 

I am currently using an iPhone 8+, Apple Watch and AirPods. I also have an iPad and Apple Pencil, plus a 5k iMac and MBA. I am subscribed to Apple Music, sync everything via iCloud, and have a bunch of apple tvs lying around the house. I have sunk hundreds of dollars into apps. I won't be able to switch out any of my devices without breaking the hard-won integration that Apple is (in)famous for. In a sense, I am responsible for landing myself in such a situation, but since everything is working so well for me, I don't regret my decision to embrace the apple ecosystem as thoroughly as I have. So it costs more overall, but to me, it's been worth every cent. And I see myself continuing to stick with Apple products for a good many years to come. 

 

I believe Warren Buffet gets it. Apple has spent many years building a defensive moat around its products, and for many users, it's not so straightforward as to say "This android phone is better because it has better specs and/or costs less". 

Did you not read my quote? I don't think you get the picture. My family was always huge apple people using iPods when they came out along with the iPad and the iPhone and other apple products. They would usually buy the new iPhone about every other iteration. But now they stopped because the price has become too high to justify. They can more than afford to buy the phone but choose not to. You say that this price increase doesn't matter and yet it clearly did for my family. I have a feeling the same will happen with others as well. Also you seem to write off android based on your comment of everyone buying android just because it cheaper for the same specs. People buy it because you get a great experience for less. I use my phone everyday and have thoroughly enjoyed it and yet it cost alot less than apple so yeah why in the world would I pay more. 

[wasab]

On 9/3/2018 at 11:58 AM, 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/

He would think a private island in the middle of carribean is too underpriced. 

[abazigal]

8 hours ago, Brooksie359 said:

Did you not read my quote? I don't think you get the picture. My family was always huge apple people using iPods when they came out along with the iPad and the iPhone and other apple products. They would usually buy the new iPhone about every other iteration. But now they stopped because the price has become too high to justify. They can more than afford to buy the phone but choose not to. You say that this price increase doesn't matter and yet it clearly did for my family. I have a feeling the same will happen with others as well. Also you seem to write off android based on your comment of everyone buying android just because it cheaper for the same specs. People buy it because you get a great experience for less. I use my phone everyday and have thoroughly enjoyed it and yet it cost alot less than apple so yeah why in the world would I pay more. 

You won’t. 

 

Tons of other people would. Enough to make Apple one of the richest companies in the world. 

 

Rather than try to explain away Apple’s success here, why not try to explain it? Not everyone looks at dollars and cents in a vacuum when deciding on what to buy. 

[Brooksie359]

13 hours ago, abazigal said:

You won’t. 

 

Tons of other people would. Enough to make Apple one of the richest companies in the world. 

 

Rather than try to explain away Apple’s success here, why not try to explain it? Not everyone looks at dollars and cents in a vacuum when deciding on what to buy. 

My point being that it may not matter to all of apples users but if you increase the price too much then some of their users will switch. They aren't immune to competition. 

[ItsJosh18]

On 9/3/2018 at 10:58 AM, 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/

Rich guy tries to sell a product he has a vested interest in...

 

tbh Pixel is better fuck Apple

[suicidalfranco]

1 hour ago, ItsJosh18 said:

tbh Pixel is better fuck Apple

off all the phones you could think you had to pick the hottest piece of garbage out there.

 

[Doobeedoo]

My god those comparisons and priorities though... money btw ...

 

Anyway, smartphones over like half of that price are overpriced anyway.

[ItsJosh18]

On 9/7/2018 at 12:11 PM, suicidalfranco said:

off all the phones you could think you had to pick the hottest piece of garbage out there.

 

well 1. that is your opinion 2. even then it would still be better than the iphone

[Drak3]

39 minutes ago, ItsJosh18 said:

even then it would still be better than the iphone

No, the Pixel lineup is a shit show of bad software, handicapping good specs with subpar firmware, and following the idiotic trends of the iPhone.

[Guest]

On 9/5/2018 at 7:35 AM, Commodus said:

By knowing that what he just said isn't a literal call to raise iPhone prices, but rather a reflection of the iPhone's utility?  Buffett doesn't always have the Midas touch, but he does use his words carefully.

I did notice too, not underpriced, but Apple could get away with charging more, which is true (within reason lot like a $2000 phone, but more on the lines of $1250. I remember how much the Nokia N97 was when it came out - a really solid phone, but really expensive.

[suicidalfranco]

5 hours ago, ItsJosh18 said:

it would still be better than the iphone

a lineup of devices so desperate to be an iphone they can't even try to bash them without cowardly remove the same features the year after

a series that attempts to act as apple by taking all the bad points but leaving out all of the good ones

 

a hot, stinking pile of garbage who's only redeeming grace is the community ability to bake a vast amount of better roms compared to the trash google throws in them

Spoiler

and that's when they don't bootloop or slow down to a crawl

 

 

[Kamina]

Underpriced for Apple's standards. Needs more proprietary accessories. 

[mr moose]

21 minutes ago, rowdy99 said:

Definitely, Warren Buffett appreciates Apple.
So we are supposed to believe this man whose interest is to raise at any cost the value of his 252 billion dollars of apple action?
This investor symptomatic of a financial economy decorellee the economic reality would be an example to follow for those who have values other than money for money?
 

you don't have to believe him, but he is really only being wax lyrical about smart phones.  Naturally he focuses on the product he is invested in.

[kokakolia]

On 2018-09-07 at 6:11 AM, Brooksie359 said:

My point being that it may not matter to all of apples users but if you increase the price too much then some of their users will switch. They aren't immune to competition. 

Immune is a bit of a stretch, but Apple having a strong resistance to competition is completely accurate. 

 

Android is a hot mess, with different versions, using different ugly themes that make the phone look dated. And then you have comparatively poor software support. iOS is practically the only selling feature of iPhones. Because you can argue that Samsung phones have better hardware and cost less. And yet, I am hesitant to say that because the Apple A12 chip may as well be the fastest. But it’s not like we really need that much processing power. 

 

But anyways, Apple is feeling high and mighty. Watch them command even higher prices for their phones.