Eli5: how did we get to the point where laptops and phones are in the same price range ?

Question

Eli5: how did we get to the point where laptops and phones are in the same price range ?

In: 16910

Answer 1

Please some economist remind me of the correct term/theories here but the gist of it (ELI5 version) is that:

>People pay what they think something is worth, not goods actual values.

Take Apple, when they charge you 100 bucks more for 128/256g iPhone models, that $100 means nothing for them simply because by choosing **any** iPhone model, you already paid all their expenses for whatever kind of memory you end up “choosing”, so if you chose to pay more, that is a 100% profit over whatever their already big profit margin already is.