To be fair, if they don’t do this, they will need to increase prices in poorer countries - otherwise someone will simply buy the phones on the cheap and resell them in more expensive areas.
Sounds like you’re defining a failure of the free market
If these devices are so cheap the marginal cost justifies the lower price, why isn’t market competition eating into their margin in the more affluent countries?
Sounds like somebody’s got their finger on the market balance
A lot of times the cheap prices in low cost countries is (partly) subsidised by the higher profit in more expensive ones. Essentially buying market share and brand recognition for some lost revenue, hoping to recap it by cornering the market and rising prices in the future. At least that’s the theory.
To be fair, if they don’t do this, they will need to increase prices in poorer countries - otherwise someone will simply buy the phones on the cheap and resell them in more expensive areas.
Sounds like you’re defining a failure of the free market
If these devices are so cheap the marginal cost justifies the lower price, why isn’t market competition eating into their margin in the more affluent countries?
Sounds like somebody’s got their finger on the market balance
A lot of times the cheap prices in low cost countries is (partly) subsidised by the higher profit in more expensive ones. Essentially buying market share and brand recognition for some lost revenue, hoping to recap it by cornering the market and rising prices in the future. At least that’s the theory.
Oh, I didn’t realize we needed to manipulate markets in favor of the marketing strategies of corporations, since they need so much help
No no, see, corporate market manipulation is good, government market manipulation is communism
oh fuck myb
It’s called the free market where your can purchase and sell goods as you wish, within the applicable laws.
Sure, I’ve personally got nothing against abolishing regional pricing and everyone paying the same price I do in the EU.