Tuesday, April 27, 2010


Here're some things that I've learnt in college/university regarding prices and profits, and economics.

We have the main product, which is the iPhone 4G, and the subsitute product, the iPhone 3GS.

After much self-persuasion, I will postpone the purchase of my (VERY long awaited) iPhone 3GS to the end of June, or early July. Since many people claimed that's when the iPhone 4G is estimated to be released (Such as the iPhone 3GS in June 2009, when my brother purchased his iPhone as well, now that I remembered after he brought it back to my dad's birthday party in August).

So here we go. For those who don't bother with Economics, you can shut this window. For those who understand Economics, leave as well, because I might get some parts wrong. LOL

The introduction of the iPhone 4G will..

  • Be pretty expensive. I'm judging it to be at least AUD$1000 because of my Malaysian roots where everything is just darn expensive. Then again, on the first release of the iPhone 3GS last June, my brother got his handset for AUD$760 - and he ordered it online. The price for the iPhone 3GS 16GB (exact same model, different colour but there're no colour charges anyway) will cost AUD$879 (original price @ $799 without GST). So if this were to be true, Apple Inc. might have the tendency to charge less on initial sales (as price per individual handsets), but will earn more if they were to be sold in a huge bundle.
    We do not forget at this point that the price appreciated/rose from $760 to $879.
  • The substitutional product, which is the iPhone 3GS, will mostly drop due to the introduction of the iPhone 4G. I have proof for this. Look at my iPod Touch 1G 16GB. Now it costs at least 2x less than it used to be. Way to go
EVEN if the iPhone 4G would cost that damned much, and if the prices would drop for the iPhone 3GS. Meaning it's a win-win situation if I were to wait:
  1. The iPhone 4G is going to push the prices of the iPhone 3GS to be lower. I can afford it.
  2. And if Apple were to sell it at a lower price on the initial introductionary periods, I can afford the iPhone 4G
Either way, I can afford either the iPhone 3GS or the iPhone 4G.

Now the other note, I have to CONSTANTLY keep AUD$1000 in my bank account without spending it. If not, I won't be able to afford anything at all. Now this will be tempting when I have a bad spending habit..

Anybody wants to hold onto my $1000 when I get it soon? :D .. JUST MAKE SURE Y'ALL GIVE IT BACK, OF COURSE!!