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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. iSteed's Avatar
      iSteed -
      Quote Originally Posted by gotjpeg View Post
      get an htc phone cause that sense ui is sexy.
      Huh?!
    1. bigboyz's Avatar
      bigboyz -
      The term "you get what you pay for" crosses my mind. You pay up front with Apple and back door with most others. Example: you buy a PC, you buy anti-virus protection. You buy a Mac....get it...haha! It's obviously not that simple but it is a simple enough example that is TRUE. Price drop? Not likely! $200 for the best cell phone on the market is not bad(although updating it every year is getting to be a little much) considering the Android is just starting to offer a UI that I actually like :] Time will tell!
    1. w00master's Avatar
      w00master -
      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
      I think Android is great, but saying iPhone is a "horrible device" is a bit extreme. That being said (I always ask this to Android fans)...

      If Android is open... why do you need to root?

      The truth of the matter is that Android is really more friendly to carriers and manufacturers. Personally, I'd rather deal with a single dictator (Apple) rather than the dictators of Manufacturers and Carriers who normally have no care with the consumers in general.

      My opinion of course.

      Still, I do have an Android device (Galaxy), and enjoy it... but I still find the user experience no where near as solid as iOS, but to each their own.

      w00master
    1. jdm.accord's Avatar
      jdm.accord -
      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.
      This times eleventy billion. Android is going to get crushed. They'll still have t-mo and sprint but they'll be the new version of webOS in less than a year. All you Android fanboiz spouting on about "open" blah blah blah can say otherwise but any sane person can see its inevitable. Android is a nice OS and I think its the "best of the rest" but it is too fragmented (unless you own the Nexus device, One or now the S) and is always paired with inferior hardware.

      The iPhone has been out for 6+ months now but none of the Android manufacturers (moto, sammy, etc) can't get within shouting distance of its screen resolution or build quality. I'm holding a Nexus S right now and its a cool phone but it looks bulky and cheap compared to my iP4 that's on my desk.

      I don't think Android will die with the coming of the Verizon iPhone; its got too many devices running it. But it certainly will be relegated to a distant 2nd place at best. Microsoft is dumping a lot of money in WP7 too so don't think second place is a cakewalk either.
    1. steve-z17's Avatar
      steve-z17 -
      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.
      Couldn't have said it better myself!
    1. NumbaOneI's Avatar
      NumbaOneI -
      I'll have to disagree with u. I currently own 3 ipads in my house 6 iPhones 4 iPod touch 1samsung galaxy tab 1 Lg optimus n the only reason I got the tab was bcuz of flash but even that doesn't work half the time. I realized it's useless n more than half the websites r already HTML adapted for iOS. As for being open ehh not really majority of android honestly know that it ain't user friendly at all it's so retarded. Price $670 for the tab at AT&T. Can't even tether it wit anything without doing a lot to it n I gave up on it. It's collecting dust. Once again *** n retarded. I will never take a android device, not even for free.
    1. dq13's Avatar
      dq13 -
      Quote Originally Posted by vantheman169 View Post
      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.
      that is my point, that no matter if the competitor's price is half, Apple will not lower the price, and we pay regardless because of what you say. I have a MBP myself and planning to upgrade to the 15" i5
    1. chrodriguezmarydown's Avatar
      chrodriguezmarydown -
      Pc people you are not getting the point! Yes you can get a pc with better specs then a Mac for cheaper but it means nothing because of your operating system! Mac is ALOT smoother then a pc. (correct me if I'm wrong) Mac uses an open GL platform which runs stuff faster (games, movies, etc) with less ram and a "crapper" graphics card.

      To simplify it as much as I can:

      Pc is like a big gas eater. Needs more ram and etc spec

      While Mac is an energy efficiant machine that goes just as fast and or possibly faster with less the "gas"/specs.
    1. gotjpeg's Avatar
      gotjpeg -
      Quote Originally Posted by iSteed View Post
      Huh?!

      Did I loose you brahhhh?
    1. saunupe1911's Avatar
      saunupe1911 -
      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.
      This is a bold face lie. I have built and bought PCs that are $100s less than a Mac.

      Quote Originally Posted by chrodriguezmarydown View Post
      Pc people you are not getting the point! Yes you can get a pc with better specs then a Mac for cheaper but it means nothing because of your operating system! Mac is ALOT smoother then a pc. (correct me if I'm wrong) Mac uses an open GL platform which runs stuff faster (games, movies, etc) with less ram and a "crapper" graphics card.

      To simplify it as much as I can:

      Pc is like a big gas eater. Needs more ram and etc spec

      While Mac is an energy efficiant machine that goes just as fast and or possibly faster with less the "gas"/specs.
      All of this may be true but MACs and PCs cater to 2 different crowds. I personally will never buy a MAC because it doesn't serve any purpose in my household or life. For example, I can't setup a MAC as a HTPC because a lot of codecs and audio/video trans-coding programs aren't MAC compatible. You can't switch or upgrade most MAC parts such as the CPU, GPU, NICs, etc... You have to buy a whole new MAC. Bottom line, MACs aren't for everyone - regardless of the price point - no matter how "wonderful" everybody on this forum tries to make them seem.
    1. krosis's Avatar
      krosis -
      Of course apple responds to market pressure. There's a reason you're not still paying $5k for a Mac or $400 for an iPod, and it's not because people blindly pay whatever apple wants.

      The computer hardware industry has been on a perpetual downward spiral in profitability towards zero for decades now. Apple has tried to distance themselves from it as much as possible by trying to appeal as a "luxury" brand, but they're far from immune.
      The mobile (sub-laptop) industry has been great for them too because it's not yet saturated at the smart-OS level they compete at like the PC industry. The subsidy nature of phones in the US also helps them hide the actual cost of the device compared to the service.

      Will we see a sub-$200 new generation iPhone this year? I don't know. But we will eventually. The history of the PC industry and apple's push into the content industry has taught Steve Jobs that control of the sales channel is VITAL, and eventually I believe he'd be happy to give the hardware away for free if it brings and keeps people in his apple ecosystem.

      The world is changing. It's interesting watching those who recognize how it's changing maneuver themselves into positions to succeed 5-10 years from now, while still faring well today.
    1. Poseidon79's Avatar
      Poseidon79 -
      In my opinion PC's are cheap and disposable. You buy a PC laptop for $600 and it's plastic and the hinge wears out and the thing gets dirty and the OS slows down and after 2 years throw it away you go buy a new one. With a Mac you use the thing for 2 years, throw on the new OS and sell it for 50% of what you paid for it! PC's do not hold any sort of value whatsoever. You end up paying more up front for a Mac but you can sell it on eBay or Craiglist and then pay just the difference ($500-$700) for your NEW top of the line macbook pro.
    1. whereswaldo's Avatar
      whereswaldo -
      If they want to sell phones for $75 they can, just remember that they'd need to sell 2-3x the amount of iPhones to pull a earnings as big as Apples
    1. dq13's Avatar
      dq13 -
      Quote Originally Posted by Poseidon79 View Post
      In my opinion PC's are cheap and disposable. You buy a PC laptop for $600 and it's plastic and the hinge wears out and the thing gets dirty and the OS slows down and after 2 years throw it away you go buy a new one. With a Mac you use the thing for 2 years, throw on the new OS and sell it for 50% of what you paid for it! PC's do not hold any sort of value whatsoever. You end up paying more up front for a Mac but you can sell it on eBay or Craiglist and then pay just the difference ($500-$700) for your NEW top of the line macbook pro.
      Or... take it to South America (Like I do) and sell your 1 year old laptop for the same price as the new one cost here, so you upgrade for free
    1. Doran's Avatar
      Doran -
      Quote Originally Posted by Article View Post
      Will New Android Price Tags Drive iPhone Prices Lower?
      No.
    1. Cowboy's Avatar
      Cowboy -
      I doubt it like people been saying on here pc to mac. Apple has amazing problems they dont need to drop prices to make sells there are millions of iphones sold across the world at the 199-299 price already why would they need to drop it anymore when people are willing to pay that much for there products anyways.
      I myself bought the iphone at full retail on release day 599 and i plan to do the same again on the next one.
      Call me a fanboy or what ever but in my opinion no one can bet out apple products.
    1. Zokunei's Avatar
      Zokunei -
      Quote Originally Posted by Poseidon79 View Post
      In my opinion PC's are cheap and disposable. You buy a PC laptop for $600 and it's plastic and the hinge wears out and the thing gets dirty and the OS slows down and after 2 years throw it away you go buy a new one. With a Mac you use the thing for 2 years, throw on the new OS and sell it for 50% of what you paid for it! PC's do not hold any sort of value whatsoever. You end up paying more up front for a Mac but you can sell it on eBay or Craiglist and then pay just the difference ($500-$700) for your NEW top of the line macbook pro.
      Hmm, good point!
    1. kingosama's Avatar
      kingosama -
      Android may lower prices in an attempt to increase their market share but that will not increase their revenue. What if they fail to increase their share?
      I don't think Apple would go in that direction, demand on their products is increasing and they don't want to play that game, it would be stupid from my point of view.
    1. Rob2G's Avatar
      Rob2G -
      Quote Originally Posted by saunupe1911 View Post
      All of this may be true but MACs and PCs cater to 2 different crowds. I personally will never buy a MAC because it doesn't serve any purpose in my household or life. For example, I can't setup a MAC as a HTPC because a lot of codecs and audio/video trans-coding programs aren't MAC compatible. You can't switch or upgrade most MAC parts such as the CPU, GPU, NICs, etc... You have to buy a whole new MAC. Bottom line, MACs aren't for everyone - regardless of the price point - no matter how "wonderful" everybody on this forum tries to make them seem.
      I have a Mac mini as a htpc and it plays and transcodes every video format out there. You must not have done your research. Macs are media monsters. Mine plays mkv avi mov mpg mp4 mp3 flac aiff wmv wma acc vob dv divx real media. As for upgrading parts I have upgraded almost everything you mentioned in my Mac pro except for CPUs. Two 2.66GHz 6-Core Intel Xeon Westmere processors why would I need to upgrade that anytime soon? Next time you talk about macs make sure you know what your talking about.
    1. ReggieSmith's Avatar
      ReggieSmith -
      How long have we been at this game? Trade mags speculating that Apple is going to do this and that in reaction to a move by someone else? And it never happens. Apple continues to do their own thing and play their cards as they see fit.

      Right now Apple is waiting for both big red and big blue to get serious penetration with their LTE networks and then they will release a handset that can take advantage of that. In this way they are not forced to spend money on separate variations of their handset. (until I see the CDMA iPhone I have a hard time believing it.)

      And slash prices because some phone makers decide to try and flood the market with cheap android phones? Apple? Do you guys REALLY believe that? Your best bet for cheaper iPhones is last years model or a refurb.