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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. one1's Avatar
      one1 -
      Quote Originally Posted by Zokunei View Post
      You mean the overwhelming majority of the population? What did you expect?
      You to say something that is not ignorant just once per week, but oh well. I'm right.
    1. Zokunei's Avatar
      Zokunei -
      Quote Originally Posted by one1 View Post
      You to say something that is not ignorant just once per week, but oh well. I'm right.
      You to say something that is not arrogant just once per week.
      I actually agreed with what you said, I just don't get why you were surprise that there are "Windows people".
    1. donkeykongking's Avatar
      donkeykongking -
      Short answer no, long answer no
    1. Buffolus's Avatar
      Buffolus -
      Go android\linux\>>>>>>>>>>>
    1. GellBrake'rrrr's Avatar
      GellBrake'rrrr -
      The picture says a lot!! I love the simplicity of the iPhone. Not /1/ person I know that has an android phone, are glad that they bought it. They only did it because it was the easiest way to achieve something close to the iPhone. Which in reallity, the knock-off that they purchased (android), had problems with a bunch of buttons, and it was bulkier, and just felt cheap.

      I see it this way..... Mo' buttons, Mo' problems!!!
    1. i.Annie's Avatar
      i.Annie -
      Been waiting for Apple to drop the MacBook pro prices, and have come to realize it isn't ever gonna happen and to me, that's ok. I'll just save up more for it. I finally got myself a nice laptop that was half the price with very fantastic specs (for me at least) but something is still missing. I can't be technically saavy and say something impressive about Macs that may explain why I want one, but from a light computer user I can say I want one not for the brand/name but for the performance.

      I played with the Evo 4G and was impressed by the touch functionality as it ALMOST matched the iPhone. I was also impressed by the gorgeous interface/UI. However, once I opened up Angry Birds (which I avidly play on my iPhone 4) and noticed the lack of smoothness. My bird "skipped" across the screen ever so slightly but if you've ever played it on an iPhone 4, it would bug you. It bugged me at least. That alone made me put the Evo 4G down and walk away. It's the small things that Apple puts the perfection on, and no Apple does not create flawless devices; but they do focus on detail and it makes the products worth the price. It's like Columbia and The North Face, completely overpriced clothing but why? My massive jacket with 2 layers keeps me warm but my lighter Columbia jacket keeps me just as warm but will probably last longer in the long run. It's a brand that sells because of its name, but it is quality (very top quality) that really should be considered.

      I'm about to get me a MacBook Pro and ditch my Asus. Worth working my butt off and spending all my hard work's money on? Definitely. It'll keep me happy longer.
    1. bigboyz's Avatar
      bigboyz -
      Apple caters to the "premium" user, whereas the majority of PCs seem to aim at "bargain bin" clientele. Obvoiously two different worlds(apples and oranges)

      It's called competition! We all know Apple will have an answer...it's called offering your products through yet another carrier(Verizon?? Haha) in the end Apple will be fine, as quality always wins!

      What would you remember most...the brand new Bentley or the 300C that tries to look like a Bentley?? Now ask yourself which one you can afford....interesting.
    1. klouud's Avatar
      klouud -
      LOL - this turned out to be a PC vs Mac fight! Funny how that happens so much on this site. We all know the pros and cons of each... however... here's my $0.02:

      Yes Apple products are over priced - why? Because Apple has branded itself as premium. Buying an Apple over a PC is like buying a Porsche Boxster S over a Ford Focus SRS... and you do the math/comparison.

      You are paying for: convenience, ease of use, the Apple name, and most importantly - the OS

      Personally, I say: do some research, build your own PC from the ground up and load OSX86 Snow Leopard. You get the price of a PC, the performance you want, and the peace of mind that you don't have to use the God Awful OS we hatefully refer to as Windows.

      --Oh! Sent from my hp a6300t (modded) Hackintosh 10.6.5
    1. sziklassy's Avatar
      sziklassy -
      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.
      The flaw with this arguments is that it is not Android (more correctly Google) doing a damn thing in price dropping. It is handset companies competing with each other (yes that includes other Android devices) in order to be the one that you buy. Some of the best selling android devices are actually not on Verizon at all either.

      Quote Originally Posted by kingbijan View Post
      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
      To each his own, but there are plenty that don't think the phones are bad. In fact, many think the phones are great. Android phone sales have surpassed that of iPhone and will only continue to grow at this rate.
    1. Zokunei's Avatar
      Zokunei -
      Quote Originally Posted by klouud View Post
      LOL - this turned out to be a PC vs Mac fight! Funny how that happens so much on this site. We all know the pros and cons of each... however... here's my $0.02:

      Yes Apple products are over priced - why? Because Apple has branded itself as premium. Buying an Apple over a PC is like buying a Porsche Boxster S over a Ford Focus SRS... and you do the math/comparison.

      You are paying for: convenience, ease of use, the Apple name, and most importantly - the OS

      Personally, I say: do some research, build your own PC from the ground up and load OSX86 Snow Leopard. You get the price of a PC, the performance you want, and the peace of mind that you don't have to use the God Awful OS we hatefully refer to as Windows.

      --Oh! Sent from my hp a6300t (modded) Hackintosh 10.6.5
      How hard is it to do all that?
    1. sziklassy's Avatar
      sziklassy -
      Quote Originally Posted by w00master View Post
      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 simple answer is because the carriers and the cell phone manufacturers want to lock it down. If you buy a phone with completely stock android OS, you won't "need" to root to get the phone to do all the things you want. Sadly, those phones are few an far between, but is isn't Google putting a halt to this, it is the manufacturers and the providers (ie HTC, Motorola, TMO, etc.)

      A slightly more detailed answer is to protect idiots from themselves. Giving everything root access can be dangeous and the vast majority of the buyers have no idea what they are doing (hence why so many people actually get so many viruses on their desktop systems). You really don't want to give someone who has absolutely no clue WTF they are doing root access. FWIW, this is more or less Apple's reasoning as well.

      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.
      This is the case with the iPhone as well. Resale value isn;t because the thing is built THAT much better. To be frank, I have not had a pc crap out on me... ever (well I had a PSU go out once, if that counts). The resale value is there because of the group of people that buy the products anyway. Apple products are a status symbol and people pay for the brand. Hell, last year's iPod models sell decently well also. iPods get returned all the time for faulty manufacturing and for "just not working anymore". You are getting a sexier device than the competition most of the time. That's for sure. Higher build quality? Not always (and I say this having bought various Apple products alongside similar products made by different manufacturers).
    1. Zokunei's Avatar
      Zokunei -
      Quote Originally Posted by sziklassy View Post
      The simple answer is because the carriers and the cell phone manufacturers want to lock it down. If you buy a phone with completely stock android OS, you won't "need" to root to get the phone to do all the things you want. Sadly, those phones are few an far between, but is isn't Google putting a halt to this, it is the manufacturers and the providers (ie HTC, Motorola, TMO, etc.)

      A slightly more detailed answer is to protect idiots from themselves. Giving everything root access can be dangeous and the vast majority of the buyers have no idea what they are doing (hence why so many people actually get so many viruses on their desktop systems). You really don't want to give someone who has absolutely no clue WTF they are doing root access. FWIW, this is more or less Apple's reasoning as well.



      This is the case with the iPhone as well. Resale value isn;t because the thing is built THAT much better. To be frank, I have not had a pc crap out on me... ever (well I had a PSU go out once, if that counts). The resale value is there because of the group of people that buy the products anyway. Apple products are a status symbol and people pay for the brand. Hell, last year's iPod models sell decently well also. iPods get returned all the time for faulty manufacturing and for "just not working anymore". You are getting a sexier device than the competition most of the time. That's for sure. Higher build quality? Not always (and I say this having bought various Apple products alongside similar products made by different manufacturers).
      I know. You'd think after people see that 95% of viruses are located in the temporary Internet files they'd pick up a pattern.
    1. sziklassy's Avatar
      sziklassy -
      Quote Originally Posted by GellBrake'rrrr View Post
      The picture says a lot!! I love the simplicity of the iPhone. Not /1/ person I know that has an android phone, are glad that they bought it. They only did it because it was the easiest way to achieve something close to the iPhone. Which in reallity, the knock-off that they purchased (android), had problems with a bunch of buttons, and it was bulkier, and just felt cheap.

      I see it this way..... Mo' buttons, Mo' problems!!!
      You are going to get malfunctioning equipment anywhere you go. Did we already forget the iPhone 4 debacle at launch? I have two friends that are still rocking their original droid and don't have any issues. How many of your friends (you did say all of them, but how many) hated their android device and had it malfunction? Calling android as an OS a knockoff is like calling iOS a knockoff of Palm or whatever mobile OS was before it (sorry I am not well enough versed in mobile OS history). My point is, they are mobile OSs. Sure you CAN make android look like iOS, but you don't have to. Certainly ideas were borrowed from iOS, but Apple borrows ideas for iOS from various places too. That doesn't make anything a knock off at all.

      Quote Originally Posted by i.Annie View Post
      I played with the Evo 4G and was impressed by the touch functionality as it ALMOST matched the iPhone. I was also impressed by the gorgeous interface/UI. However, once I opened up Angry Birds (which I avidly play on my iPhone 4) and noticed the lack of smoothness. My bird "skipped" across the screen ever so slightly but if you've ever played it on an iPhone 4, it would bug you. It bugged me at least. That alone made me put the Evo 4G down and walk away. It's the small things that Apple puts the perfection on, and no Apple does not create flawless devices; but they do focus on detail and it makes the products worth the price. It's like Columbia and The North Face, completely overpriced clothing but why? My massive jacket with 2 layers keeps me warm but my lighter Columbia jacket keeps me just as warm but will probably last longer in the long run. It's a brand that sells because of its name, but it is quality (very top quality) that really should be considered.

      I'm about to get me a MacBook Pro and ditch my Asus. Worth working my butt off and spending all my hard work's money on? Definitely. It'll keep me happy longer.
      Just wondering if you played with a demo model. Reason being, people are free to do whatever the hell they want with those models, and because the OS is not restrictive to the point iOS is, it WILL bog down considerably if you load all the crap under the sun onto it. With a little optimization (hell, perhaps even a custom ROM), things run very well on the EVO. The problem is that people's first impressions are of a bloated ROM with a bunch of Sprint crap and god knows what else loaded onto it. Apple certainly did hat right... didn't allow a bunch of junk to be put onto their OS. Unfortunately, that is also what makes the OS so damn restricted; a catch 22 if you will.

      Quote Originally Posted by klouud View Post

      Personally, I say: do some research, build your own PC from the ground up and load OSX86 Snow Leopard. You get the price of a PC, the performance you want, and the peace of mind that you don't have to use the God Awful OS we hatefully refer to as Windows.
      The only problem with this is that you are technically breaking licensing terms and possibly the law (although I am not sure this has ever been contested). Apple doesn't sell their OS to be loaded onto a PC. Furthermore, I am willing to bet that 99% of the copies on "hackintosh" computers are pirated anyway. But, you do have a point about doing your research. I still continue to disagree about Windows being a terrible OS. My theory is that the vast majority of Windows users are too stupid to do so much as plug a damn AC cord into the outlet. OSX solves this problems by dumbing down everything for the noobie user. Apple is great at making extremely noob friendly software. J(please note I am not speaking of or for power users of any OS here).
    1. Effenpig!'s Avatar
      Effenpig! -
      Quote Originally Posted by Poseidon79 View Post
      haha. It's not "mute"... it's "moot".
      Moot | Define Moot at Dictionary.com
      Haha, here's some more:

      Chimley
      Icening
      Valentimes day

      I cringe when I hear stuff like that, drives me crazier
    1. Zokunei's Avatar
      Zokunei -
      Quote Originally Posted by Effenpig! View Post
      Haha, here's some more:

      Chimley
      Icening
      Valentimes day

      I cringe when I hear stuff like that, drives me crazier
      Do people really say that?
    1. iD3nn1s's Avatar
      iD3nn1s -
      Competition is good. Makes the price go lower for us consumers
    1. steve-z17's Avatar
      steve-z17 -
      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.
      This is exactly what I do, it's the best way to go!

      Quote Originally Posted by i.Annie View Post
      Been waiting for Apple to drop the MacBook pro prices, and have come to realize it isn't ever gonna happen and to me, that's ok. I'll just save up more for it. I finally got myself a nice laptop that was half the price with very fantastic specs (for me at least) but something is still missing. I can't be technically saavy and say something impressive about Macs that may explain why I want one, but from a light computer user I can say I want one not for the brand/name but for the performance.

      I played with the Evo 4G and was impressed by the touch functionality as it ALMOST matched the iPhone. I was also impressed by the gorgeous interface/UI. However, once I opened up Angry Birds (which I avidly play on my iPhone 4) and noticed the lack of smoothness. My bird "skipped" across the screen ever so slightly but if you've ever played it on an iPhone 4, it would bug you. It bugged me at least. That alone made me put the Evo 4G down and walk away. It's the small things that Apple puts the perfection on, and no Apple does not create flawless devices; but they do focus on detail and it makes the products worth the price. It's like Columbia and The North Face, completely overpriced clothing but why? My massive jacket with 2 layers keeps me warm but my lighter Columbia jacket keeps me just as warm but will probably last longer in the long run. It's a brand that sells because of its name, but it is quality (very top quality) that really should be considered.

      I'm about to get me a MacBook Pro and ditch my Asus. Worth working my butt off and spending all my hard work's money on? Definitely. It'll keep me happy longer.
      Just got my new MBP, absolutely love it! Hope you enjoy yours!
    1. soulthoughts's Avatar
      soulthoughts -
      I rooted my first Droid over the weekend. It was surprisingly easy. I played with the phone for a while and I was pleasantly surprised.

      Don't get me wrong, I love my iPhone. I've had one from the start and have been an active member here longer than 99% of today's members but it surprises me sometimes at the blind faith some place in Apple.

      How quickly we forget how our phones lack(ed) some basic functionality and had design flaws through various generations.
    1. x2dope's Avatar
      x2dope -
      Apple owns the phone market. People are going to buy iPhones regardless of price. Has there ever been a bigger release than the iPhone 4 for a cell phone? No. The iPhone is top notch technology, with great hardware, and an OS that is completely seamless and not laggy on the hardware it is on. You get what you pay for and a cheaper Android price would make sense on most phones released because the Android OS isnít what I would call seamless and not laggy, even with the great hardware in the phone.
    1. EagleyeSmith's Avatar
      EagleyeSmith -
      Yea. I don't see the whole reason for Apple to switch up their pricing model. The way it works now is just fine, and pretty sweet. In like six or seven months. The iPhone 4 will be $100.00 on contact. That's a pretty darn good deal. Then you have the iPhone 5 ranging from $200.00 to $300.00. Yea, it doesn't matter. As we've seen, people will pay a premium to own an Apple product because it's Apple. You know the quality and experience will be on point.