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Comment by bsiemon | Hacker News Reader

Is $29 for a case really that expensive if you just bought an iphone?

Considering those bumpers probably cost less than a dollar to make, and are apparently quite essential to the product working properly in some instances, the $29 is kind of a slap in the face. On the 16GB model the bumper costs 15% much as the phone itself. The bumper probably costs less than the packaging you throw into the trash. (which is not required to make the phone work properly)

It's definitely not, but if I had purchased an iPhone 4 I'd be more than a little bit pissed off about this response. One of the most advertised and promoted features of the new iPhone is it's stunningly beautiful design. To then have to stuff it in a case that hides that design and makes it look like pretty much any other phone... just seems wrong.

Cases suck. It's not the cost, it's having some cheesy looking piece of rubber on your phone.

$29 for what amounts to a repair module for your phone does seem a bit pricy, considering it's broken from the factory.

It's $29 because that's what the market said it's willing to pay for a piece of rubber and plastic. Basic market economics. If the market's not willing to pay, then the market will adjust the price. Apparently the market's willing to pay $29.

There are plenty of manufacturers who will sell it for it's true price. :) Dealextreme.com

Certainly, but it doesn't change the fact that the market recognizes a place for the $29 product. You can walk into the Apple store and see ridiculously priced cases. It's because people are willing to pay. The market sets the price. If someone doesn't like it, they have a choice. It's the beauty of markets.

You can argue about markets setting the prices if those prices change. I doubt the $29 price point is going to fluctuate anytime soon. Apple picked a price, not the 'market' and that's where it'll stay. Whether the market will bear it is an open question.

Pricing products can be a complicated issue and can involve more than just market forces.

Talk about sweeping statements. There is a hell of a lot more to "Basic market economics" than "If the market's not willing to pay, then the market will adjust the price" but thanks for ridiculing everyone in the field.

In this particular instance, cases are just an accessory market for Apple. They don't care if they are selling as many of these as possible because it's not even a secondary revenue stream. They can afford to let it just sit there at $29 until it rots or someone buys it.

Ok, that's just plain wrong. Stores like the Apple Store or Fry's make their biggest margins on the accessories. Of course they care about selling as many any the can. You really think the margin on an iPhone is anywhere nearly as big as the margin on a rubber iPhone case?

Any economist will tell you there is cost associated with having inventory sitting on the shelves and not moving. Floorspace in an Apple Store, or any store for that matter, isn't free. There's rent, opportunity cost, maintenance, etc. Basically, if people stopped paying high prices for rubber cases at a store, the store will drop the price because there's cost associated with it sitting there. Maybe Apple can endure a lot more pain than their competitors, but that's not magic, that's because of the pile of cash they're sitting on. If they had less cash, they wouldn't be able to endure as much pain in the market. Yes, maybe there's other forces at work, but basic market forces don't stop applying just because it's Apple.

>Maybe Apple can endure a lot more pain than their competitors, but that's not magic, that's because of the pile of cash they're sitting on.

Exactly. They make enough margin on other things to not be forced to be so aggressive with pricing on other things.

>but basic market forces don't stop applying just because it's Apple.

My point was: the cost of things is much more complicated than "basic market forces" [1].

[1] http://en.wikipedia.org/wiki/Pricing_strategies

The point is that any price for an that's required as a repair kit for a defective product is too much.

Is $300 really that much to get some bumpers, if you just bought a new car?

Worse yet, adding those bumpers, and most cases, makes the whole 'square edge to allow the phone to sit up and act as a camera on a table' feature, er thing, not work.

No, but on my 3g I dont use a case simply because that makes the phone bulkier and most cases make you drag your entire pocket out along with the phone.

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