Re:$2,500 Ethernet Switch Effectively Isolates Audiophiles f...
by Someone on Monday January 03, 2022 @12:40PM
(#29783580)
I think many people conflate at least 3 different terms when discussing whether iPhones are expensive:
- “Luxury good” is objective. https://en.wikipedia.org/wiki/Luxury_goods: “a luxury good (or upmarket good) is a good for which demand increases more than what is proportional as income rises, so that expenditures on the good become a greater proportion of overall spending” (luxury goods need not be expensive, either, especially if they only become useful in combination with other items that are expensive. Many people can afford to buy golf balls, but I think they still are luxury goods because golf clubs, club membership, and the ability to find time to play golf all are luxury goods)
- “Status symbol” is subjective, with groups of people deciding whether something is a status symbol. Status symbols need not even be expensive. Cultural or legal norms can prohibit the “don’t haves” from acquiring them (in Rome, not everybody was allowed to wear a toga, for example).
- “Overpriced” is subjective, with each individual deciding for themselves whether they think something is overpriced. Because of this, arguing whether an item _is_ overpriced is useless.
I see “overpriced” as 100% distinct from “has high profit margin” That’s objective, but a consequence of the value users see in a product (either as a functional item or as status symbol)
I don’t have the numbers, but chances are that iPhones are luxury goods. Whether they’re the other two depends on context. If you work at the Free Software Foundation, they may not be status symbols, for example.
- “Luxury good” is objective. https://en.wikipedia.org/wiki/Luxury_goods: “a luxury good (or upmarket good) is a good for which demand increases more than what is proportional as income rises, so that expenditures on the good become a greater proportion of overall spending” (luxury goods need not be expensive, either, especially if they only become useful in combination with other items that are expensive. Many people can afford to buy golf balls, but I think they still are luxury goods because golf clubs, club membership, and the ability to find time to play golf all are luxury goods)
- “Status symbol” is subjective, with groups of people deciding whether something is a status symbol. Status symbols need not even be expensive. Cultural or legal norms can prohibit the “don’t haves” from acquiring them (in Rome, not everybody was allowed to wear a toga, for example).
- “Overpriced” is subjective, with each individual deciding for themselves whether they think something is overpriced. Because of this, arguing whether an item _is_ overpriced is useless.
I see “overpriced” as 100% distinct from “has high profit margin” That’s objective, but a consequence of the value users see in a product (either as a functional item or as status symbol)
I don’t have the numbers, but chances are that iPhones are luxury goods. Whether they’re the other two depends on context. If you work at the Free Software Foundation, they may not be status symbols, for example.