Firsttime
Platinum Member
- Mar 31, 2005
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That sucks for the poorer markets, if the company can sell it to them at that price and make a profit, they can sell it to me at that price also. Them raising the price on me because I can afford more is against my interests and market theory states I should avoid that if I can. The optimum solution would be for the prices to equalise between the markets so that it is a bit cheaper for me and a bit more expensive for them.
They aren't making a "profit" selling at lower prices in poorer countries. They're increasing their revenue, but their costs are all in development and marketing. The actual production costs of the finished product is negligible. They rely on wealthier markets paying more to recoup those costs and then they reclaim as much as possible from poorer markets by selling cheap product they wouldn't sell at higher prices. Pharma companies do the same kinda thing. If people abuse them for doing it they'll just stop offering their products in poorer markets at reduced prices, or maybe all together.