Mikehit said:
9VIII said:
Talys said:
AvTvM said:
Mikehit said:
How does mirrorless have higher margins when people like you expect the price of the camera to be lower because they are not going to the expense of manufacturing a mirror box/assembly?
very simple: camera makers dont and wont hand out 100% of cost savings to customers. Not even I expect to get 100% of cost savings associated with mirrorless cameras. But I do expect a "decent cut" on them ... a 50/50 split would sound fair to me. What i will definitely not accept is "LOWER cost for maker combined with HIGHER prices for customers". But i am aware that many of the "apologist" folks around here are much more lenient with their gear supplier/s ... but that is not my problem, it's theirs.
Sorry, man. That doesn't make any sense. No manufacturer in the world operates on the basis that if they save some money, they'll give you a cut of those savings
...
That’s how the entire electronics industry has operated for the last 50 years, otherwise you would be paying trillions of dollars for anything more than a basic calculator.
Er....have you studied, or been involved with business finance? You could charge a trillion dollars and make massive profits but you would get 0% of a massive mark-up.
The reason prices dropped is because of competition. And Sony have a unique series of products so they charge what they can and they get away with it because of the unique set of features. It will be interesting to see what happens to Sony prices a year after Canon and Nikon enter the FF mirrorless market.
ding ding ding... give the man a medal
That's precisely it. In many consumer electronics industries, products are sold in a highly competitive marketplace, and the price (profit) optimization curve lands you at a low profit margin. The price is highly elastic, meaning that as you increase price, the profit plummets.
The only thing that cost savings do is determine the price floor (the lowest possible selling price), because a company generally doesn't sell items at a loss.
Never, ever, does Samsung or Apple go, "the next phone/laptop/tv will cost 20% less, so we'll mark down the price by 10% to pass it on to the customers". Any pricing manager who suggested that would be laughed out the front door.
If anything, it is the opposite: with each successive generation, the goal is to reduce costs
in order to increase profits. So the first generation of a product (like an Xbox or PlayStation) will set a benchmark price. Then, as time passes, the production cost will drop, without any change in the selling price. At some point, the selling price will drop (because of competitive forces and price attrition), but by then, the manufacturing cost has dramatically fallen.