Android & Chill
One of many internet’s longest-running tech columns, Android & Chill is your Saturday dialogue of Android, Google, and all issues tech.
Samsung spent just a few million {dollars} to indicate a few of its new merchandise this week. It was a typical tech occasion with executives telling us how nice the brand new stuff goes to be, how a lot we will find it irresistible, and why the corporate is necessary sufficient so that you can spend an hour listening. What it did not let you know is that the corporate thinks you are a sucker.
That is the very first thing I believed when the mud settled as a result of Samsung thinks you will spend practically two thousand {dollars} on a cellphone, and it is proper. No less than a few of us will. I will not, and neither do you have to.
I am not going to let you know that you simply should not pay more cash for a cellphone that folds in half or how it’s best to spend your cash basically. Everybody spends cash on issues they do not want, together with me. I’m telling you that you simply should not be shopping for your folding cellphone from Samsung as a result of should you do nothing goes to alter. Particularly the pricing.
I am probably not faulting the corporate for including $100 to the worth. All the pieces is costlier, and the 5% bump ought to have been anticipated. It simply occurs to be 5% on a worth that was too excessive to start with.
Analysts and tech writers have been saying how foldables will develop into extra accessible and cheaper for the previous 5 years or so. I am unable to discover anyplace that Samsung truly mentioned it is undoubtedly occurring, however the firm fortunately goes together with the thought and has by no means stepped up and mentioned it isn’t going to occur. Samsung has gone as far as to say that it is making an attempt to make it occur, however it simply hasn’t achieved it.
I get that making a flowery hinge and a glass-plastic bonded display screen that folds in half will add to the prices, however have a look at what different firms are doing. Do you actually assume that Samsung does not have a stronger provide chain or higher entry to supplies than OnePlus? Or Google? Or Honor? In fact it does, if for no different purpose than most of the elements come instantly from Samsung itself. Why are Samsung’s foldables as costly — or costlier — than what different firms provide?
Perhaps each single piece inside a Z Fold 6 is healthier than something a competitor is providing. Or possibly Samsung is aware of it might probably cost no matter it likes as a result of the individuals who had been going to purchase one will purchase it whatever the worth. This, I feel, is what Samsung is relying on.
Samsung is aware of nearly no one buys foldable telephones and has even admitted that “most” of the individuals who do purchase one are individuals who have already got one. The corporate additionally is aware of that it now not sells the lion’s share of folding telephones. However does it care?
One solution to acquire market share is to streamline manufacturing and promote cheaper telephones. A ten% revenue margin on tens of millions extra merchandise is as profitable as increased margins on issues that are not promoting. This might match proper in with Samsung’s message that everybody ought to need a foldable as a result of they’re cool, and it is precisely how Samsung beats out Apple to promote essentially the most smartphones 12 months after 12 months. Supply extra, promote it for much less, and folks will purchase it.
Another plan is to not give a rattling about market share, cost as a lot as you may, and rely upon these repeat clients who you assume are going to purchase your overpriced merchandise anyway. And sure, individuals who will purchase a brand new Z Fold, regardless of the worth, do exist. Too a lot of them, actually.
The one factor we will do as customers is to not purchase overpriced merchandise; to cease being a sucker. If sufficient folks vote with their wallets, we’ll get extra for our cash.
I do know I am not going to alter anybody’s thoughts by penning this. In the event you assume Samsung is charging an excessive amount of for a Fold 6, you do not want me to let you know. On the flip aspect, should you had been going to purchase one anyway, you will assume I am silly and may even take the time to let me know.
I do know I am no sucker and will not let Samsung deal with me like one.