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by chockchocschoir 1558 days ago
That's like saying Apple raises the prices of the iPhone through new generation of iPhone models, which is not true at all. If the same service gets a higher price, then it's a praise raise. If a new service gets a higher price, it's just a new service.
3 comments

> That's like saying Apple raises the prices of the iPhone through new generation of iPhone models, which is not true at all. If the same service gets a higher price, then it's a praise raise. If a new service gets a higher price, it's just a new service.

I don't think the distinction is that clear: you could just rebrand an existing service and raise the price. "Try our new v2 APIs, guaranteed compatibility with our v1 API and only 10% more expensive!"

I think the reality is somewhere in between, where companies will use new product launches to add stuff for customers and raise prices to protect their margin.

> That's like saying Apple raises the prices of the iPhone through new generation of iPhone models, which is not true at all.

I don't know if I'm reading your comment right, but the average selling price of iPhones has been climbing steadily from the start.

Apple margins are pretty consistent.

Assuming the assumption that intergenerational go up is true, in general compute only gets cheaper over time, so escalating prices implies increasing margin.