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  • Will New Android Price Tags Drive iPhone Prices Lower?



    Apple may look, sound, and act like the biggest dog on the smartphone block, but Android is a big enough player in the neighborhood that Apple can - and should - respond when appropriate to Andriod's business and marketing strategies. On Monday, in fact, the Huffington Post teed-up a big question poised to confront Apple in 2011: exactly how will Cupertino react to Android's apparent "how low can you go" price cutting efforts? It's a hot discussion that was sparked last week by Fortune magazine:
    Tran says that phones made from the BCM2157 chipset will retail for under $100 and may dip as low as $75. Those devices should debut in just 3-6 months (and we might hear about them next month at CES).
    If you stop and consider the magnitude of the price reduction, it's a truly substantial cut given that the enormously popular pre-paid Android devices are now running about $180. A further reduction to bring that price below $100 will not only make Android more attractive in the eyes of prospective customers, it could also prompt Apple to revamp its pricing plans.

    Realistically, the Android slash would most likely affect Apple's low-end strategy, which - until now - has been to serve up the previous year's model at a price point of $99 (with a two year contract, of course). But the total cost of this "package" still drastically outpaces the deal offered by Android. As a result, Apple may have to cook up a new pricing strategy to mitigate the impact of the $100 (or less) Android.

    The Huffington Post
    This article was originally published in forum thread: Will New Android Price Tags Drive iPhone Prices Lower? started by Michael Essany View original post
    Comments 100 Comments
    1. piston597's Avatar
      piston597 -
      free iphones is the way to go... I'm ok with spending 200 though...
    1. kingbijan's Avatar
      kingbijan -
      they can sell their phones for whatever they want apples still gonna sit there at the same price. they can roll out like 15 new android phones but if they're all **** whats the point of paying even $25 for the phone lol
    1. delusion950's Avatar
      delusion950 -
      Apple will less likely drop the price. If your willing to own the Apple device your most likely willing to pay their price just because it's Apple.
    1. purplemonkeyspank's Avatar
      purplemonkeyspank -
      Just look at the price of mac books and the like with the price of most windows laptops and pc's out there from 300 for a good spec machine. As if apple are going to lower prices for the iPhone...

      Funny how they're made for peanuts and sell for the prices they do though.
    1. thetoothfairy's Avatar
      thetoothfairy -
      Don't think they will lower their prices but it would be nice if they did!
    1. CaptainChaos's Avatar
      CaptainChaos -
      Android has to do this because they know that once Verizon gets the iPhone their party is over. They are about to take a beating.
    1. dq13's Avatar
      dq13 -
      they don't care about competitor's prices. you can get a Laptop (non Mac) in best buy for 400 bucks, that doesn't stop Apple from selling theirs for over 1000

      Quote Originally Posted by CaptainChaos View Post
      Android has to do this because they know that once Verizon gets the iPhone their party is over. They are about to take a beating.
      I don't Think so. There are a lot of us that like Android better. I am with ATT and I sold my iphone, I think its a horrible device (personal opinion) and I like to mod my device big time so Android is the way to go since its open source and I can flash any ROM I want and try different things and improve the performace. you can even play with the modem drivers and GPS settings to increase speed and signal. Try that on an iPhone
    1. Muteone's Avatar
      Muteone -
      @kingbijan: the android is a legitimate competitor, that was established in the article.

      Quote Originally Posted by purplemonkeyspank View Post
      Just look at the price of mac books and the like with the price of most windows laptops and pc's out there from 300 for a good spec machine. As if apple are going to lower prices for the iPhone...

      Funny how they're made for peanuts and sell for the prices they do though.
      This is possible but not necessarily true. PC to Mac comparisons are only partially legitimate because iPhone has a greater market percentage than Macs in their respective industries. Apple could do the same thing they did with the Mac and keep high prices but this could turn it into an expensive alternative to the android as the Mac is to the PC. But the fact that they already have a cheaper offering with the previous year's model suggests that they're trying to stay competitive with android prices.
    1. luvmytj's Avatar
      luvmytj -
      Quote Originally Posted by dq13 View Post
      they don't care about competitor's prices. you can get a Laptop (non Mac) in best buy for 400 bucks, that doesn't stop Apple from selling theirs for over 1000
      I love it when people use this argument. Set up a PC with similar specs as a Mac and the PC will also cost $1000. Your point is mute.

      As far as cost of new handsets... I think Apple will do nothing at this time. Apple products are not "bargin bin" type products. Prices will only be lowered on old designs as new ones are released.
    1. dq13's Avatar
      dq13 -
      Quote Originally Posted by luvmytj View Post
      I love it when people use this argument. Set up a PC with similar specs as a Mac and the PC will also cost $1000. Your point is mute.
      Not really. A Dell Laptop 15 inch, core i7 6gb RAM, 640gb HDD runs on the 1200, when Apple's is 2200 and has less HDD and less ram
    1. Poseidon79's Avatar
      Poseidon79 -
      Quote Originally Posted by luvmytj View Post
      I love it when people use this argument. Set up a PC with similar specs as a Mac and the PC will also cost $1000. Your point is mute.
      haha. It's not "mute"... it's "moot".
      Moot | Define Moot at Dictionary.com
    1. vantheman169's Avatar
      vantheman169 -
      Quote Originally Posted by dq13 View Post
      Not really. A Dell Laptop 15 inch, core i7 6gb RAM, 640gb HDD runs on the 1200, when Apple's is 2200 and has less HDD and less ram
      The operating system on my MacBook Pro is worth the money alone. I have never had a single fatal error on my Mac, No BSD to worry about like on Windows. I kept my Windows PC pretty top notch too and it still gave me problems. Macs are pretty much Maintenance Free. Ya i still do maintenance on mine but the average user is not going to. It boots up in 30 seconds flat and shuts down in about 2-3 seconds, Gos to sleep and wakes up hella faster than any windows PC. My battery also lasts about 5 hours on my macbook pro which is the Early 2009 model the newer models 13-17 Inches get anywhere from 7-10 hours of runtime. I mean there is a reason why people pay so much for Apple products.
    1. jaas75's Avatar
      jaas75 -
      cmon guys everybody knows the mac is wayyyyyyy overpriced (you can get a similar spec PC for at least 60% less than mac counterpart)

      But reality is we are paying the OS part of our macs i mean you take an alienware i7 with 6gb laptop running windows 7 and you can get the same performance as a lower end macbook (just my 2 cents)

      Snow leopard Rocks!!!!!!!

      but pls dont compare prices mac are wayyyyyyyyyyyyyyyyyyyyy overpriced (i honestly dont undertand how they can get away selling old hardware at such high price)

      want proof just chk your local apple store and try to buy ram memory, new batterys, headphones, cases for iphone or macs, etc. (just take any product then compared with real world prices like newegg or amazon and youll see how much we are over paying

      the psycology behind i that as humans we like to overpay it makes you feel you are buying more quality, or you belong to a select group, etc. (it most cases you are) even if its the same products (just go to a "high class" restaurant and youll pay 10dls for a budwaiser, or any other product you can buy for wayyyy less.

      again just my 2 cents and sry for the long post

      jaas
    1. Mes's Avatar
      Mes -
      It depends upon Apples long term strategy. Not everyone is willing to pay a 'premium' for a product. As the higher-end consumers (defined as: people willing to pay more) becomes more saturated, unit sales growth will slow. If Apple wishes to continue their spectacular double-digit growth they must provide a product that meets the mid-level consumers' price-point. Only Apple knows their market segment strategy.

      I'm not talking about the bargain-basement consumers -- although within this group lots of good money can also be made if the product is priced correctly. Hence the iPhone Mini product speculation especially for the thrifty-spenders.

      Did anyone notice their 35%+ profit margin last quarter and expectations of further decreases? This was significant news to me! It's down from Apple historical +50% rate just a few years ago. While this margin is more typical of a hardware based company as opposed to software (Microsoft, Oracle, etc), it also indicates Apples willingness to compete on price far more than in years past.
    1. shigh's Avatar
      shigh -
      Quote Originally Posted by Poseidon79 View Post
      haha. It's not "mute"... it's "moot".
      Moot | Define Moot at Dictionary.com
      nice. lol. your point cant talk.
    1. Zokunei's Avatar
      Zokunei -
      T-Mobile had surprising deals before Christmas. The cheapo ones were free on contract. But the one that actually had slightly better specs than the iPhone 4 was still $200 on-contract. I don't see how them lowering the prices of crappy phones is any reason for Apple to lower prices. Not to mention Apple's seemingly arrogant view of their software.
      "[OS X is] the most advanced operating system." and "[iOS is] the most advanced mobile operating system."
      -Apple

      If a shiny case and good OS is a reason for Macs to be like $800 more expensive than a PC, then I don't see how it's different to them with the iPhone.
    1. one1's Avatar
      one1 -
      Bunch of windows people in this thread it seems. Apple does not price match, does not price adjust for market, and does not feel any need to even acknowledge there are competitors. If you don't know that by now, you don't know jack about Apple. They will sell it at whatever they want and you'll buy it if you ever even thought about doing so.
    1. steve-z17's Avatar
      steve-z17 -
      Quote Originally Posted by dq13 View Post
      they don't care about competitor's prices. you can get a Laptop (non Mac) in best buy for 400 bucks, that doesn't stop Apple from selling theirs for over 1000



      I don't Think so. There are a lot of us that like Android better. I am with ATT and I sold my iphone, I think its a horrible device (personal opinion) and I like to mod my device big time so Android is the way to go since its open source and I can flash any ROM I want and try different things and improve the performace. you can even play with the modem drivers and GPS settings to increase speed and signal. Try that on an iPhone
      Sweet, you should go be with your Android phone then lol...I don't care what anyone says, I've used both Android and iOS and iOS beats out any Android phone any day of the week! So whether Apple decides to lower their prices or not I'll always pay more money for an iDevice! Android can lower their prices as much as they want but they still won't beat out the iPhone
    1. Zokunei's Avatar
      Zokunei -
      Quote Originally Posted by one1 View Post
      Bunch of windows people in this thread it seems.
      You mean the overwhelming majority of the population? What did you expect?
    1. gotjpeg's Avatar
      gotjpeg -
      I dunno I kind of miss my droid phone I went back to the iPhone 4 and I'm kind of disappointed but both operating systems lack certain things so theirs never going to be a perfect platform. Mark my words though once android finally gets Netflix and a Nike running app I'll get an htc phone cause that sense ui is sexy.