Re:GoPro shows its vulnerability after horrific Q3 earnings
by usrusr on Friday November 04, 2016 @10:30AM
(#12872796)
That counterargument only flies when sellers are repeatedly selling to get yet another upgrade. First time buyers rarely think about resale value.
But giarc's point wasn't so much about resale value (despite his claims of the opposite), it was about an active second hand market due to (1) confused first time buyers and (2) a reputation of ruggedness.
It basically boils down to: more people buy gopros than there are people with a real usr car for them, this is why the second hand market exaggerates market saturation effects more than usual.
Re:GoPro shows its vulnerability after horrific Q3 earnings
by mhb on Friday November 04, 2016 @11:36AM
(#12873393)
I think you don't understand the point which I consider to be whether GoPro's profits are helped or hurt by a robust market for their used products.
Whether or not GoPro generates more total sales as a result of their products' value in the used market, they are able to charge a higher price for new sales because of it.
It may be that the higher price does not offset sales competition from used products, but that is another question.
That's not necessarily true. The counterargument is that having a good resale value allows you to charge more for your new sales because of the added value.