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Will price go back up after version 2 upgrade?

Discussion in 'Google TV General Discussion' started by mustang1068, Aug 26, 2011.

  1. mustang1068

    mustang1068 New Member

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    Just wondering what people's thoughts are on the pricing once Google TV 2 hits the street.

    They lowered the price of the Revue to $99 to try and move some systems, obviously at a loss. Do you think the prices will creep back up once the new update hits just in time for the holidays?

    Was thinking about getting a couple more now as Christmas presents just in case.
     
  2. Rickaren

    Rickaren New Member Staff Member

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    For those that returned them when buying at a reduced price, it would be Poetic Justice in my view:p
     
  3. Cygnus

    Cygnus New Member

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    Doubtful if the Revue's price will increase. But I doubt Revue 2 will be $99; it would be nice if it did.
     
  4. MrAndroid

    MrAndroid New Member

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    I think the price will hike up. Regardless of MSRP, that is only suggested. Take a look at the ASUS transformer as an example. Even the 16GB, with a MSRP of 399.99 was selling for $460+ on Amazon because of supply/demand. With the official update to HC3.1 the demand for the revue will be more, and therefore the price will increase.
     
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  5. Cygnus

    Cygnus New Member

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    The difference is that GTV's competitor's price, e.g. apple TV, roku, etc, is $99. Thus I doubt if revue's price will increase. I do see the revue 2 costing more, but not the revue's original price. Revue 2 should be priced at most $150.
     
    Last edited: Aug 26, 2011
  6. MrAndroid

    MrAndroid New Member

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    I don't think you're understanding what I'm saying. I'm not saying the manufacturers suggested retail price will increase (MSRP), I'm saying retail vendors will increase the price on the units they are selling. That has nothing to do with competitor device pricing, and has everything to do with vendors hiking the price because of demand.

    Sent from my Thunderbolt using Tapatalk
     
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  7. eferz

    eferz Well-Known Member

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    Logitech isn't selling the Revue at a loss by the way. You can listen Guerrino De Luca (acting CEO) explain it on the Q1FY12 webcast from Logitech's Investor Relations website. It is being sold with slim profit margin. Remember, Logitech makes the bulk of their revenue by selling their product in bulk to their distributors not end-users.

    While I agree the individual retailers might increase the price of the Revue, that would outside the Logitech's profit margin for the Revue.
     
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  8. Cygnus

    Cygnus New Member

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    That makes no sense for several reasons:
    1. No evidence of that much of an increase in demand for GTV since price drop
    2. Stores rarely increase the price of an existing product when its successor is released.
    3. GTV's competitors, apple TV, roku, etc, have sold more units than GTV.

    About the only dilemma you could face is that stores may run out of stock of the $99 revues as I seriously doubt they are still being made.

     
  9. MrAndroid

    MrAndroid New Member

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    Really that makes no sense? I'll reply to each one of your points:

    1. No evidence of that much of an increase in demand for GTV since price drop;
    Do a google search for "logitech revue" "sold out" and you will see tons of posts and comments stating that since the price dropped to $99, they have been selling like hotcakes. Comments stating "they're sold out at every best buy i have been to" and others of that sort show that since the price drop, the demand for it has increased.

    2. Stores rarely increase the price of an existing product when its successor is released;
    I never said that the price increase would be because of a successor coming out. I stated the price would be due to the increased demand for the device once the official HC3.1 update comes out, and all revues have access to the android market. Retailers hike the prices of things all the time based on demand. It's one of the oldest principals of business, known as supply and demand. The more demand there is for something, the more valuable it becomes. Take a look at the aforementioned ASUS transformer and they dock for it. the 16GB transformer has a MSRP of 399.99, the 32GB has a MSRP of 499.99, and the dock has a MSRP of 149.99. The 16GB sells on average for 450+, the 32GB sells on average for 550+, and dock sells on average for around 175+. This is because there is a high demand for those devices, so the retailers know they will sell for the increased price, in turn putting more money in their pockets.

    3. GTV's competitors, apple TV, roku, etc, have sold more units than GTV.
    Once again, what does this have to do with retailers increasing the price of the revue? I'll use another example. The Ipad 2 has sold way more than any one single android tablet, yet the price on the transformer has been hiked up due to demand. retailer pricing is overtly equivalent to the demand for the item being sold. I'll use another example. Android phones as a whole have sold more than the Iphone, but if Apple came out with an update that gave the Iphone 3 the same exact features/functionalty as the Iphone 4, the demand for the Iphone 3 would increase. Because of that increase, the overall "value" considered for the Iphone 3 would increase, in which case retailers and even people selling used via craigslist etc.. would increase the price to sell it.

    If you had a dvd player that in your opinion was worth $30, and the demand for that specific dvd player increased to the point where it was selling out everywhere, would you still sell it for the $30 you originally thought it was worth, or would you sell it for an increased price because of the demand? Regardless of your answer, the truth is retailers would almost always choose the latter.
     
  10. Cygnus

    Cygnus New Member

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    Yes, there have been an increase in GTV sales but not to the extent for stores to jack the price back up. Stores are basically trying to clear out GTV inventory for other items (possibly for GTV2). Regarding GTV being "sold out every where!", amazon, buy.com, etc seem to have plenty in stock... From what I have seen of the HC update, it won't really increase demand either. Now if google releases a successor to GTV at an reasonable price, that could stimulate demand some. You keep mentioning demand for iphone, ipad2, etc...but you fail to understand that the demand for GTV has never come close to those products, even at the closeout $99 price... From your nick, it seems you are a google/android fan. That is fine but lets not get fandom mixed up with reality... ;-)

     
    Last edited: Aug 26, 2011
  11. MrAndroid

    MrAndroid New Member

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    I'm not getting "fandom mixed with reality" as you stated. I'm not looking at this from a Google fan, I'm looking at this from a business owner and someone with an understanding of general principles of business. The fact is we are both commenting on speculation and opinion, so trying to argue is moot. All I stated is that in my opinion I could foresee the price of the revue rising once the update comes out due to an increase in demand. Neither you, nor I, nor anyone else can "argue" that opinion because it is all based on speculation. No one sans a time traveler could give us anything that could be counted as fact in the matter, because it hasn't happened yet. You are entitled to your opinion, as am I, but arguing the matter and trying to belittle me with comments of "fandom" is redundant.

    Edit: And just an FYI, i've had the nickname Mr. Android from before Google bought the Android OS from Andy Rubin of Danger Inc. I've had this nickname for 18 years. It just so happens that I'm also a fan of the Android OS.
     
    Last edited: Aug 26, 2011
  12. Cygnus

    Cygnus New Member

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    Yes, and all I was doing was explaining how I disagree with that. Looking at it from a biz perspective, it is extremely rare (if ever) that a software update results in a spike in demand and price for an existing product that has been out for a nearly a year, esp when the product's price was recently lowered by one third of its original price... If you have some examples of this, please provide. Besides most consumers expect the price for consumer electronics to decrease over over time, not increase. Thus I foresee them keeping GTV at its current price and release GTV2 at a more reasonable price, say $150

     
    Last edited: Aug 26, 2011
  13. MrAndroid

    MrAndroid New Member

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    I can think of a few examples where a software change increased demand for a product, and in turn increased the sales price that some retailers assigned for said products. The most profound example of this would be when a video game system gets hacked or modded to allow unsigned code, remove region blocking, or allow backups to be used. The PSP saw a major increase in demand when it first got hacked, and local retailers (including gamestop's child companies like funcoland, etc..) increased their sale price for them because the demand was so high. The same thing happened with the Xbox 360 when it was first modded. The Nintendo DS got a surge of sales after the R4 came stateside, but there was no price increase.
     
  14. Cygnus

    Cygnus New Member

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    PSP sales increased due to rampant piracy on it not because of software update. Console sales normally increase due to price drops, games that people want are released, console game bundles, etc... not updates to the software the console uses.

     
  15. MrAndroid

    MrAndroid New Member

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    what is a software update but an change that adds new features or functionality. the same could be said due to the hacking that was done. Regardless of the cause, the point is that merchants increased the sale price of the PSP at that time because of the demand for it.
     
  16. Cygnus

    Cygnus New Member

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    Please provide a link or source that PSP price increased after software update... Console prices normally decrease over time.

     
  17. Chunkybug

    Chunkybug New Member

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    OMG peeps,

    Look at the past....

    Webtv went from classic, to webtvplus to msntv to nada..

    Google dropped the ball on us and there is no recovery from this

    Just my thoughts as usual

    Kev
     
  18. MrAndroid

    MrAndroid New Member

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    I don't have a link or source other than myself going to funcoland to buy one after custom firmware was created, only to see that the price was an additional $30 above what it should be. I went to 3 different stores (i'm pretty sure it was two funcolands and a babbages) and they all had the price hike. When questioned why the price was above MSRP i was told something along the lines of "we can't keep them on our shelves so corporate raised the price".

    I don't understand why this is so hard for you to fathom, as it's been a standard business practice for some time. Demand for a product gives retailers a viable way to make additional money off said wanted product.
     
  19. Cygnus

    Cygnus New Member

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    Heh..OK..no real source..as I expected. Good luck hoping that GTV price will increase with HC update. Don't hold your breath on that one ;-) BTW, I thoroughly understand the concept of supply and demand. But the point I am making is that the demand for GTV won't pick up that much with the HC update... If you really feel that way, then buy all of the GTVs out now, and when the price hikes up, you can sell them at a profit. Come on, I dare you ;-)

     
    Last edited: Aug 27, 2011
  20. MrAndroid

    MrAndroid New Member

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    I'm officially ending my part in this conversation as it's going nowhere.
     

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