September 19, 2018

What’s something worth?

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By Paul McGowan From PS Audio

My iPhone X retails for $1,000 at the Apple store. That’s a lot. It’s one of the most expensive mobile phones on the market and it could be argued it’s at the top of the expense heap. And yet, if that were a high-end [Digital to Analogue Convertor] power amplifier it would be on the extreme low end. And, what’s tough about that equation is the level of technology and parts in an iPhone is a magnitude more expensive and sophisticated than any .

Now, it should be noted that millions of iPhones are manufactured each year compared to thousands of DACs. Economies of scale certainly play a big role in pricing. That said, the chasm between an expensive DAC and a technological wonder like the iPhone cannot be explained entirely by scale.

Pricing strategies have a myriad of formula. Some are priced according to marketplace expectations, some a fixed formula of parts and labor. Still others are boastful of being the most expensive, or the cheapest.

When I judge value I look at a lot of factors: importance of the product to me, other models in the market, need, scarcity or abundance, the company story and its founder’s philosophies.

What a product is worth is up to each buyer and its value to them, not what’s necessarily fair or equitable to charge.

IMAGE: Paul McGowan

For more on this story go to: https://www.psaudio.com/pauls-posts/whats-something-worth/

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