Tuesday, August 26, 2008

Marketing mesmerics

This is somewhat related to my previous post about how the human race is becoming less and less connected as a result of technology, in particular mobile phones and other "communication" devices. On Friday last week the Czech Republic saw the official launch of the iPhone onto its market; on Thursday night, Wenceslas Square was graced by a queue of some 400 people waiting to get their hands on the latest in mobile phone wizardry.

I have to admit that I am always staggered at the stupidity of people who want to stand in the cold just so they can boast of being one of the first owners of some plastic and metal which lets them talk to a random "friend" in Australia who they "met" online. Even more staggering to me is that people seem to think that a phone will somehow revolutionise their lives, someone even suggested to me that it was great to be able to watch videos on it. Maybe I am a total luddite, but isn't the cinema a great way to see films, especially if you go with your friends, have a couple of beers before hand and maybe a curry on the way home? Or even renting a DVD, getting a crate of ale and inviting some people round?

Within a purely Czech context, I read today that the iPhone which has been released here doesn't support the Czech language, as such all the menus and features are in English. Also if a Czech speaker wants to write an SMS to a friend, it is impossible to turn off the predictive software, so you end up with English words. So you have to tip your hats to Apple for failing to provide a key service to the Czech market for this product, especially relevant when you realise that 10% of all SMSes globally originate from Czech mobile users.

And the price for the basic 8Gb piece of gizmo lunacy? Without a subsidised contract, 12,000CZK which at the current exchange rate is $750, current price for the same iPhone on Amazon? $284. Could someone explain to me how it is possible to justify the iPhone at almost 3 times the cost on the Czech market than the American? Are not the production costs the same? Sure it costs a bit to transport products, but buying the 16Gb version from Amazon.de is the same price as the 8Gb version in the Czech Republic and unless I missing something, salaries are much better in Germany and the USA than here in Prague.

To add a little perspective, 12,000CZK is half the average net monthly salary in Prague, outside of the city it is closer to two-thirds the average salary. I assume there are very few people in the US earning just $568 a month - under $7000 for full time work, or that many Germans have salaries comparable to the average Czech salary. So how do you justify the price tag?

Because idiots will believe the hype and splash the cash. Sometimes I despair.

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