New iPods Demonstrate BLS BS
from the inflation,-deflation,-whatever dept
The obvious response to folks complaining about the iPhone price cut is that of course the price was going to be cut, because it's a tech item, and the cost of technology invariably marches lower. Yes, technology is a constant deflationary force, not just because prices of it keep dropping, but because the quality of any given item tends to rise over time. We've made this point in the past, that inflation statistics have a hard time dealing with tech items, because the measures only look at price and have a difficult time adjusting for quality improvements. As economist Russ Roberts notes, the new iPod Classic is not just $50 cheaper than the original, it holds 40 times as much data. In other words, doing a like-for-like comparison between the original iPod and the new one vastly understates the amount of progress that was made in such a short time. What's more, while it's easy to note the data storage comparisons, how do you quantify the addition of video playback or pictures? It's pretty difficult. So while inflation statistics serve a purpose, it's important to recognize that there's often a lot more at work than just price changes.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Reader Comments
Subscribe: RSS
View by: Time | Thread
The issue with the price cut was for the iPhone. $200 in 2 months is pretty brutal.
Of course the price was going to be cut, but in 2 months?
Does apple want to discourage early adopters?
[ link to this | view in chronology ]
Re:
No. It was a tax for the stupid.
[ link to this | view in chronology ]
Re: Re:
[ link to this | view in chronology ]
Re: Re: tax for the stupid
[ link to this | view in chronology ]
Price cut vs technology improvement
[ link to this | view in chronology ]
Re: Price cut vs technology improvement
I just have to say I am extremely excited for the iPod touch. Since I can't have an iPhone in my state, I want the next best thing (and I don't have to have a monthly subscription!) =D
[ link to this | view in chronology ]
Glad to hear it
[ link to this | view in chronology ]
I find it hard to believe..
It's pretty clear that Apple was overcharging out of the gate to recoup some short term fianancial gains. To me it seems like they were trying to get a big boost for their stocks closing out third quarter. High sales numbers with big margins gets folks excited and drives up their stock.
[ link to this | view in chronology ]
Re: I find it hard to believe..
[ link to this | view in chronology ]
The iPhone and the early adopter
I've seen almost as many posts on blogs from people saying they have no problem with the price cut as I have people complaining about it. What this tells me is that many of the early adopters knew the price drop was coming. I think that the only surprise in it was how soon it came.
I am still a little struck as to why there isn't a 16GB iPhone yet. I personally will wait until the thing is 30Gb before I get one (Even 16 is a little too small). It'll probably be about the same time my current cell phone contract runs up. And who knows by then it'll probably have more than one provider.
Thats the other thing you can count on in technology. It doesn't take long for the minimum standard to get raised to what was inconceivable not that long ago.
[ link to this | view in chronology ]
technology not the only deflationary force
[ link to this | view in chronology ]
Re: technology not the only deflationary force
[ link to this | view in chronology ]
Re: Re: technology not the only deflationary force
[ link to this | view in chronology ]
Re: Re: Re: technology not the only deflationary f
Thank you.
And, I haven't even taken econ recently.
[ link to this | view in chronology ]
sheeple
[ link to this | view in chronology ]
Re: sheeple
[ link to this | view in chronology ]
Tandy Computer for $8500 in 1989
$8500 for a 20MHz 80386;
This ad is so an example of how far technology has progressed.
Monitor and Mouse not included;
No Harddrive mentioned, Floppy Disk system.
My cellphone has more computing power and graphics capability than this computer.
[ link to this | view in chronology ]
It's a pricing strategy
1) Create a highly desirable product
2) Price it so only fanatics would be crazy enough to buy it
3) When that pool of buyers starts to dry up, drop the price to attract a much wider buyer pool.
It's one of the many ways that big companies with great products maximize revenue. They stick it to the people that have an illogical immediate need for the product.
Have yall learned your lesson yet? I friggin doubt it.
[ link to this | view in chronology ]
Re: It's a pricing strategy
[ link to this | view in chronology ]
Not quite....
I think concept is good, the example of the iPhone is bad.
[ link to this | view in chronology ]
Stop complaining
[ link to this | view in chronology ]
Re: Stop complaining
[ link to this | view in chronology ]
Re: Re: Stop complaining
[ link to this | view in chronology ]
[ link to this | view in chronology ]
stop whining
[ link to this | view in chronology ]
i need this item
i am juliet rose and i am urgent need your item for my son who secure an admission into university in abroad ,who birthday is coming up , i am kindly to pay sum $900Usd for the ipod because of the urgence of the item asap and for the payment to be done asap get back to me with this details
Name:
Address:
Country:
Zipcode:
Tel no:
Regards,
2) valid email adress .........
i want it fast , cos he is on my neck and soi want the business to fast asap so you can contact me by my email address(betadays10@yahoo.com)
THANKS
REGARDS
[ link to this | view in chronology ]
Ipod
I just bought a protective case for my Ipod at target through www.newelectronicdeals.com on Black Friday. I'm glad my I'm Ipod is protected, but it looks stupid the way it currently is.
Apple needs to regulate some of it's 3rd party providers for elegance and design.
I guess I thought getting it on Black Friday would be a benefit.
K.S.
[ link to this | view in chronology ]