Why are phones like the S4 Mini so stupid overpriced?

[StrangerGuy]

I noticed S4 Mini sells for almost $400 without contract in the US but it has worse hardware than the $200 Nexus 4 except for LTE, nevermind about the Nexus 5. Over here in Singapore it gets even more hilarious where the S4 Active only costs ~15% more and yet it is infinitely better in every way (4x the display pixels, far better SoC, larger internal memory, waterproofing). What is Samsung thinking with this one, really, and it feels the same way for midrange Android phones these days that isn't Nexus.

 

[sm625]

They're all overpriced. When a ZTE vital is $150, it is extremely difficult to justify spending 2-4 times as much for marginal spec increases that no one could ever notice. It's like buying an i7 over a pentium when all you're running is office and youtube. But the people who do spend $400-$600 on a phone are the ones who make it possible to bring a $150 deal to the market so who am I to fault them? Just like the ones who spend $90 a month on a contract plan make it possible for MVNOs like ringplus to sell me my $10 a month 400 minutes/300SMS/300MB/month plan.

 

[Thegonagle]

Because most other higher-end phones, such as the (non-mini) S4, are even stupider overpriced, and the Google Nexus line isn't everyone's cup of tea. If you're first to receive the latest OS, you're also first to experience the latest bugs. And $400 looks like a bargain compared $500, $600, or more.

 

[Graze]

...because Samsung.

 

[paperwastage]

because people would think S4 Mini = mini shrunken version of S4...

not that Samsung put inferior materials in the S4 Mini

and hence, Samsung can charge that price (~80% of a regular S4), and people would buy it

 

[alangrift]

Because most other higher-end phones, such as the (non-mini) S4, are even stupider overpriced, and the Google Nexus line isn't everyone's cup of tea. If you're first to receive the latest OS, you're also first to experience the latest bugs. And $400 looks like a bargain compared $500, $600, or more.

I had the HTC Desire and it had a keyboard bug that never saved my custom autocorrect words and it never got fixed.

I generally think your more likely to get bugs fixed on a Nexus phone than on any other.

e.g.
Nexus Line - Kit Kat 4.4 comes out, it comes out on the phone.
Samsung/HTC/Sony variants of Android - Kit Kat 4.4 comes out, the OEM modifies it with their own overlay and bloatware, then the Network Provider modifies it with their own bloatware apps. Taking months if not years for an update to come out, and they often don't update OS's.

 

[openwheel]

because you are paying for all the billboards, ads, and commercials.

 

[Genx87]

I went looking at phones at T-Mobile last night. I was in complete shock the old S3 is still 440 bucks. I was thinking to get the same phone as I have now on Verizon. The S4 I think was 640. I settled on a pair of 240 dollar phones. I was utterly shocked at the prices. I figured the S3 would be around 300 at most. That is an old phone now.

 

[shortylickens]

 

[JimKiler]

I don't think we are operating in a free market therefore this is an oversimplification of the situation.

 

[shortylickens]

Are people paying 400 for the phone?
Its at equilibrium.

 

[s44]

I noticed S4 Mini sells for almost $400 without contract in the US but it has worse hardware than the $200 Nexus 4 except for LTE

This is like X vs S4 but in reverse.

The mini has really good battery life, is easily one-handable and super-light, and, with the dual-core Krait on the inside, is totally fast enough. It also has LTE, expandable storage, and a superior camera (let's not forget how wretched the N4's was).

In other words, in terms of everyday use, it will be a lot more pleasant and a lot less headache than the N4.

Now it's clearly not worth $400, but would I recommend it over the N4? Almost all the time, yes.

 

[Genx87]

Are people paying 400 for the phone?
Its at equilibrium.

Do they have a choice? The phone market in this country is very protected. I cant port my phone between carriers which destroys the ability to have a true free market. The choice is pay 400 for the same phone between all carriers. But the carriers arent competing on phone prices at all. If we could decouple the phones from the carriers I would guesstimate phone prices would drop.

 

[shortylickens]

Do they have a choice? The phone market in this country is very protected. I cant port my phone between carriers which destroys the ability to have a true free market. The choice is pay 400 for the same phone between all carriers. But the carriers arent competing on phone prices at all. If we could decouple the phones from the carriers I would guesstimate phone prices would drop.

YES THEY HAVE A CHOICE!

Theres literally dozens of other phones to choose from. Theres 4 major carriers each with their own network and a buttload of tiny carriers leeching off them.

We have way more options that the rest of the world. In fact thats our only real problem, narrowing down the plethora of Choice.

 

[paperwastage]

I cant port my phone between carriers which destroys the ability to have a true free market.

whoops, read it as porting phone number..... well, in the next year or so, with Qualcomm 5th/6th gen modems, maybe manufacturers can create just one device for all LTE networks AND CDMA fallback


that's not true (in US), starting in 2003(?)

http://www.fcc.gov/guides/portability-keeping-your-phone-number-when-changing-service-providers

http://en.wikipedia.org/wiki/Local_number_portability#United_States

http://www.commlawblog.com/2010/05/...uts-new-time-limits-on-porting-phone-numbers/





but that saying, the four major carriers behave in a monopolistic manner... all of them have similar rate plans / prices / phones etc... when one carrier changes something, another carrier follows with the same changes...sigh

only lately, t-mobile has become more "innovative" and different (uncarrier model, free int'l data roaming/texting)

 

[Commodus]

I do think the S4 Mini is overpriced, but you have to be careful about comparing to the Nexus line -- the models you get through Google Play are sold with very little (if any) profit.

You know how a Nexus 5 costs $450 contract-free from T-Mobile? In a sense, that's the "real" price you'd pay on Google Play if the company wanted to make money like other designers. Many manufacturers can't afford to sell at such low margins. We need a balance between that and the excessive margins you'll see at Samsung.

 

[Ns1]

Just like the ones who spend $90 a month on a contract plan make it possible for MVNOs like ringplus to sell me my $10 a month 400 minutes/300SMS/300MB/month plan.

Wow. I would go into overages on that plan so fast.

 

[Mopetar]

I don't think we are operating in a free market therefore this is an oversimplification of the situation.

That's somewhat immaterial. Most markets aren't completely free, but they still follow laws of supply and demand. Mobile phones are about as free a market as one can expect. $400 is the price at which Samsung feels they can best maximize their revenue with the device given market conditions. If people will pay that much for it, then by definition it's not overpriced.