First off, $2k is the price of the new iPhone Duo. Suggesting that that is basically the same thing as a $500 Android phone is... strange.

But also, I don't think you should use individual consumer behavior as a proxy for how the overall LLM market behaves. Current estimates are that individual users represent a pretty small share of overall genai revenue. Most of it comes from enterprise contracts. Those might be more price sensitive because the CFO gets a say in which vendor they choose.

For a couple years now I've been accustomed to choice of foundation model being a heavily scrutinized design decision because it's just about the easiest way to manage COGS. I can certainly imagine scenarios where, given the option to pay 1/2 as much in inference costs but with a 5% reduction in output quality, the boss would say, "Nah, that's a bad deal." But I have yet to encounter one in the wild.

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bko 3 hours ago | parent | next [-]

> First off, $2k is the price of the new iPhone Duo. Suggesting that that is basically the same thing as a $500 Android phone is... strange.

Okay fine, it's $1,400 for a latest iPhone Pro with 512gb of storage. Point still stands.

> Most of it comes from enterprise contracts. Those might be more price sensitive because the CFO gets a say in which vendor they choose.

I think enterprise contracts are even less sensitive to price than consumer. That's the whole idea behind enterprise pricing. You'll see companies charge multiple times as much just for SSO for instance.

There are limits to this obviously, but to think that major commercial enterprises will switch over to some Chinese models to save some money is laughable.

	▲	bunderbunder 2 hours ago \| parent [-]
		> Okay fine, it's $1,400 for a latest iPhone Pro with 512gb of storage. Point still stands. So you switched away from the specialty product, but you're still comparing a top of the line 6.3 inch iPhone to a mid-market Android phone. Why not compare it to a Pixel 11 Pro with 512GB. That way they're at least comparable devices. But also, that would cost $1,220, which I suppose doesn't go well with the intent of suggesting iPhones are several times as expensive as Android phones. The reason why I'm digging in on this is, when you start your argument with such a transparently silly comparison, it gives the impression that you're dealing in superlatives and willing to say just any old thing. Which undermines your own credibility. So, getting back to corporate - multiple times how much for SSO? Okta Essentials is $17/user/month, which is a little over half as much as the base price for Cursor Pro, and about 2/3 the price of a basic ChatGPT seat.

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seven-red-suns 2 hours ago | parent | prev [-]

tbh iPhone genuinely doesn't have anything over chinese models, and if there is any illusory sense of privacy, that is purely marketing. Genuinely people thinking iPhone is anywhere close to worth it lose respect because they are at the end of the day just tribes that love one thing