Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

What Kind of Person Pays $3,700 for an iPhone 5?


A deep-pocketed Russian who doesn't want to wait until December, that's who.

What's behind the staggering amounts of money some people are willing to part with for a new gadget?

"If it's cool, it has to be now. If it has to be now, there's a time premium on it and that's something that people – at least some people – are willing to pay for," Joel Steckel, a professor of marketing at NYU (and founding president of the INFORMS Society for Marketing Science), tells me.

Steckel says this is something that "goes beyond the iPhone, though it certainly applies" and is a reflection on Apple's carefully crafted reputation.

"These exorbitant premiums are generated by the brand overall," Steckel says. "That's why you tend to find the same situation with all Apple products all over the world."

Dan Burges, director of intelligence at FreightWatch International, a global logistics security firm headquartered in Austin, Texas, says serious problems with grey market technology purchases are few – the occasional warranty concern or an unhappy (authorized) retailer who is losing sales.
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos