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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. EagleyeSmith's Avatar
      EagleyeSmith -
      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.
      You're so so so right. It is the little things that Apple does that make the biggest difference. I love Apple for those things. Always have, and always will.
    1. GellBrake'rrrr's Avatar
      GellBrake'rrrr -
      Quote:
      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.

      END QUOTE:

      I have at LEAST 15-20 friends/co-workers that have android based phones. And bet your Arse they all wish they didn't buy the phone that they have, and are jealous of my iPhone 4 which is jailbroken and completely HD themed. And whatever "Debacle" your talking about.... I'm unsure of. But, if you're talking about the /Death Grip/.... I never had a problem with it, nor has ANYBODY that I know /around 30/, since the numbers need be apparent.

      And when I say knock-off, ummmm, I mean ANY phone that tries to resemble/compete with the iPhone. I thought I made that pretty clear. Neither palm nor Pre were what people wanted when the iPhone came about. When the iPhone was born was everybody saying it was gonna be the palm killer? Or the Pre killer? And we also see how far those devices have gone.

      I don't doubt your knowledge Of OS/IOS/ any OS..... My point and ONLY point was that EVERYONE I KNOW that has an android based phone would rather have MINE!!!!

      Knock-off may have been a little extreme. But what I really meant to get across is that when the iPhone first launched, it was the first of it's kind. And EVery phone maker in the world tried to make one just like it, or "1 up" it.

      Don't get me wrong.... I love competition. It helps prices and technology move faster. But what I'm saying is.... After the iPhone launched...... Every phone in the smartphone category was just a look-a-like..... Hence knock-off.
    1. x2dope's Avatar
      x2dope -
      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.

      This is also to the person that said a MBP is better for "gaming".

      so my asus g73 laptop that i paid 1199 for at best buy has a 17" screen, 6 gigs of ram (upgraded last month to 8gb for 35 dollars), 5870 grapahics card, Core i7-720QM 1.6GHz runs starcraft 2 on completely max settings with no problems. My buddy from work a mac lover bought the new i5 MBP 1799 with 4 gigs of ram and a geforce 330, and a 15" screen that can BARELY run starcraft 2 on medium (still laggy but tolerable).

      I love my iPhone and wouldn’t own another phone but the MacBook price is stupid crazy. I have never gotten a BSOD on a Windows 7 machine that costs the same amount as a MBP…or even half the price of a MBP for that matter.
      To the person that said you have to buy an antivirus for a PC must not research VB100% or any antivirus software, there are better free antivirus programs than the ones you pay for (unless its NOD32, the only one WORTH paying for).
    1. ShredNasty's Avatar
      ShredNasty -
      Idk if it'll drive Apple's prices down, but it'll affect their sales. I LOVE Apple, but after getting tired of sh!t cell service I switched from an iPhone 4 to a Samsung Captivate a month ago. I lost FaceTime. That's it. And the phone does MORE than a jailbroken iPhone STOCK. Next month, the Olympus drops. Dual core. 8 and 5Mp cams. HDMI out. DLNA. 4.3" screen. Comparison? There is no comparison to me. But, I still like Apple. Still want an iPad, still use my 5th gen Nano, and still use my Mac. As far as phone go, IMHO, Android wins.

      Apple had better step it up for the iPhone 5 or they will be in serious trouble.
    1. CaptainChaos's Avatar
      CaptainChaos -
      Quote Originally Posted by sziklassy View Post
      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.



      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.
      To think that the hardware manufacturer is the only entity in on discussions about pricing is debatable. It's a team effort to push out the final products and everyone involved has input. Is Android a free OS to the hardware makers? There isn't any money to be made by hiring a team of coders and then giving the end result away. Licensing of Android would have to be made cheaper for the handset makers not to eat the whole cost of the new price tiers.
    1. klouud's Avatar
      klouud -
      Quote Originally Posted by sziklassy View Post
      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).
      Loading OSX86 is no different then jailbreaking back when it was not officially deemed legal - same exact thing.
      I have an official copy of Snow Leopard sitting next to me - for $35 you can own one too - what Apple does not tell you is that the "upgrade" disks hold the entire OS on them.

      I must disagree with your disagreement about Windows - I was helping my mom with her brand new Win7 machine - just doing some basic stuff - you know, the stuff that seems like kindergarden stuff to us but (some) moms think we are geniuses for knowing about. Yeah... that stuff... and the darn thing pulled a Windows and had a massive system error.

      I could care less what OS makes me look smart or dumb - because when it all comes down to it, they are pretty much the same as far as functionality - I just want something that is going to work. Windows is a loose cannon, I am never sure if its going to work properly or die on me. I've been a windows user from Win 3.1-Vista SP2.

      Quote Originally Posted by x2dope View Post
      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 isn’t what I would call seamless and not laggy, even with the great hardware in the phone.
      You have a point - the only Androids on the market that rival the i4 are the Galaxy S and Nexus S - they are actually the same phone...
      -------------------

      If you guys go on the AT&T website you will find that they offer refurbished and factory defective iPhones for as low as $19 with a 2 year contract... hows that for pricing competition?
    1. Dash-2's Avatar
      Dash-2 -
      I liked the original iPhone: $600

      Or to put it a other way:
      Would you rather drive a Kia or a BMW? Which one costs more?
    1. ShredNasty's Avatar
      ShredNasty -
      Quote Originally Posted by klouud View Post


      You have a point - the only Androids on the market that rival the i4 are the Galaxy S and Nexus S - they are actually the same phone...
      Idk about that. MyTouch 4G and Evo 4G both raep the i4 on hardware. Next month Motorolla drops the dual core Tegra 2 powered Androids.

      Quote Originally Posted by klouud View Post
      If you guys go on the AT&T website you will find that they offer refurbished and factory defective iPhones for as low as $19 with a 2 year contract... hows that for pricing competition?
      $19? For a refurbished 2.5 year old phone? Alright. Well I payed $0.01 for my refurbished Captivate on AT&T's site. A two year newer phone that was at least doubled, if not tripled or quadrupled specwise (Ram, HD, processor, camera, bat life, ect...)

      I'm not gonna lie. I have noticed a small amount of lag on some things. It is minimal, but noticable coming from an iPhone 4. BUT, the cell reception is vastly better. No dropped calls. And the best....an OPEN OS! That means my YouTube saving app? Free. SMS Popup? Free. Album Artwork Downloader? Free. Edit my homescreen? You bet. Delete my lock screen? No prob. Drag and drop music, videos, apps and SNES roms as easily as a flashdrive without NaziTunes? Absolutely. WiFi hotspot? Free (after rooting, which took 15 minutes). THOSE are the things that made me switch. I've owned every iPhone and can say, the fit and finish is outstanding, the OS is super polished, and there are some nice features. But the iPhone 4 was outdated 3 weeks after it was released, the reception sucks, and it's locked down so doing anything that isn't Steve Jobs approved is a chore. My $.02...
    1. Nickaroni22's Avatar
      Nickaroni22 -
      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 totally agree here, Droid will get very desperate with price cuts, when and if Verizon gets the iPhone. They might even start giving them away. Apple will delivery a huge blow to Droid!
    1. CaptainChaos's Avatar
      CaptainChaos -
      The only android phone I have played with is the Evo and I liked a lot of things about it. Unfortunately it is with Sprint which I will never use.
    1. krosis's Avatar
      krosis -
      Quote Originally Posted by CaptainChaos View Post
      To think that the hardware manufacturer is the only entity in on discussions about pricing is debatable. It's a team effort to push out the final products and everyone involved has input. Is Android a free OS to the hardware makers? There isn't any money to be made by hiring a team of coders and then giving the end result away. Licensing of Android would have to be made cheaper for the handset makers not to eat the whole cost of the new price tiers.
      I think you're overestimating Google's influence. Afaik there is zero licensing fees to use android on a device. Anyone can download it and do so themselves. Google makes their android money on search, and through android market sales.

      That's why we've seen so many cheap android 1.x knockoff tablets w/o market access. Google can't really stop them from using the OS but they can restrict market access.

      Verizon's inclusion of Bing as the default/only search on some android phones is just an example of how little control Google actually has on the process.

      Software as a service is the future. Give away the OS. Give away the hardware if you have to / can. Make your money on the service.

      Google is fortunate, that they don't have to participate directly in the zero-sum race to the bottom of profitability that the manufacturers are engaged in, mirroring Microsoft's role in the PC revolution.

      Apple is in the same race, but has a nice buffer (different OS), and a nice fallback (they have a full platform, and can maintain profit independent of hardware if needed).
    1. x2dope's Avatar
      x2dope -
      Quote Originally Posted by ShredNasty View Post
      Idk about that. MyTouch 4G and Evo 4G both raep the i4 on hardware. Next month Motorolla drops the dual core Tegra 2 powered Androids.



      $19? For a refurbished 2.5 year old phone? Alright. Well I payed $0.01 for my refurbished Captivate on AT&T's site. A two year newer phone that was at least doubled, if not tripled or quadrupled specwise (Ram, HD, processor, camera, bat life, ect...)

      I'm not gonna lie. I have noticed a small amount of lag on some things. It is minimal, but noticable coming from an iPhone 4. BUT, the cell reception is vastly better. No dropped calls. And the best....an OPEN OS! That means my YouTube saving app? Free. SMS Popup? Free. Album Artwork Downloader? Free. Edit my homescreen? You bet. Delete my lock screen? No prob. Drag and drop music, videos, apps and SNES roms as easily as a flashdrive without NaziTunes? Absolutely. WiFi hotspot? Free (after rooting, which took 15 minutes). THOSE are the things that made me switch. I've owned every iPhone and can say, the fit and finish is outstanding, the OS is super polished, and there are some nice features. But the iPhone 4 was outdated 3 weeks after it was released, the reception sucks, and it's locked down so doing anything that isn't Steve Jobs approved is a chore. My $.02...
      The reception arguement is not really valid because AT&T in my area it stupid fast and crazy awesome compared to verizon. So you rooted your android...did you jailbreak your iPhone? YouTube saving app - yourtube which does it in the YouTube app. SMS pop up...countless ones in Cydia...my favorite is irealsms. Album artwork...don't know I use my zune as an mp3 player. Edit home screen...lockscreen info is one I have used but there are around 5 or more QUALITY other ones that aren't trash. Drag and drop music...once again don't use my iPhone as an mp3 player but you can do this with videos using ifunbox and dropping the videos into ANY folder on the phone and watch them using ifile (has to be the correct format which I'm sure the stood does to) snes roms...open Cydia and there is your extremely popular snes app that tons of people use. Wifi hotspot pdanet, mywi. And you can either pay for the ones that require it or get them by other means. You can get all the apps in the app store for free to if you choose to. So what's your argument now? I also haven't seen a theme on a stood to rival anything I have seen on here by our theme gods barsoverbeats, zausser, initsua, or new guy with promise anthonygiola.
    1. Zokunei's Avatar
      Zokunei -
      Quote Originally Posted by ShredNasty View Post
      Idk if it'll drive Apple's prices down, but it'll affect their sales. I LOVE Apple, but after getting tired of sh!t cell service I switched from an iPhone 4 to a Samsung Captivate a month ago. I lost FaceTime. That's it. And the phone does MORE than a jailbroken iPhone STOCK. Next month, the Olympus drops. Dual core. 8 and 5Mp cams. HDMI out. DLNA. 4.3" screen. Comparison? There is no comparison to me. But, I still like Apple. Still want an iPad, still use my 5th gen Nano, and still use my Mac. As far as phone go, IMHO, Android wins.

      Apple had better step it up for the iPhone 5 or they will be in serious trouble.
      Did you just say dual core on a phone?!
    1. Zokunei's Avatar
      Zokunei -
      Quote Originally Posted by x2dope View Post
      The reception arguement is not really valid because AT&T in my area it stupid fast and crazy awesome compared to verizon. So you rooted your android...did you jailbreak your iPhone? YouTube saving app - yourtube which does it in the YouTube app. SMS pop up...countless ones in Cydia...my favorite is irealsms. Album artwork...don't know I use my zune as an mp3 player. Edit home screen...lockscreen info is one I have used but there are around 5 or more QUALITY other ones that aren't trash. Drag and drop music...once again don't use my iPhone as an mp3 player but you can do this with videos using ifunbox and dropping the videos into ANY folder on the phone and watch them using ifile (has to be the correct format which I'm sure the stood does to) snes roms...open Cydia and there is your extremely popular snes app that tons of people use. Wifi hotspot pdanet, mywi. And you can either pay for the ones that require it or get them by other means. You can get all the apps in the app store for free to if you choose to. So what's your argument now? I also haven't seen a theme on a stood to rival anything I have seen on here by our theme gods barsoverbeats, zausser, initsua, or new guy with promise anthonygiola.
      You missed his point, he was saying how you could get those things without rooting.
    1. ShredNasty's Avatar
      ShredNasty -
      Quote Originally Posted by Zokunei View Post
      Did you just say dual core on a phone?!
      Yep. Google Motorola Olympus. They use the Tegra 2 processors and Motorola will release an entire line (similar to Galaxy S) across all Major US carriers. VZW's will be LTE enabled as well....
    1. CaptainChaos's Avatar
      CaptainChaos -
      Give me a swappable battery and I will be happy. I can live with antennaegate, but this battery is killing me.
    1. w00master's Avatar
      w00master -
      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.
      I'd like to know what codec you can't install on a Mac? There's nothing that I cannot play on any of my Macs.

      (Note... it's Mac and not MAC.)

      Also, I know a ton of people (including myself) that have a great HTPC setup with a Mac. So again... what can't you play on a Mac?

      Unless... you're talkin' about Blu-Ray? That's the only thing that I can think of.

      w00master
    1. ingesterfella's Avatar
      ingesterfella -
      If you hate ifone and own android what are you doing on a apple forum is it cos you miss your idevice but dont like to admit
    1. w00master's Avatar
      w00master -
      Quote Originally Posted by CaptainChaos View Post
      Give me a swappable battery and I will be happy. I can live with antennaegate, but this battery is killing me.
      Yeah... you're never gonna see a swappable battery on the iPhone. I'm fairly sure of that.

      w00master
    1. ShredNasty's Avatar
      ShredNasty -
      Quote Originally Posted by x2dope View Post
      The reception arguement is not really valid because AT&T in my area it stupid fast and crazy awesome compared to verizon. So you rooted your android...did you jailbreak your iPhone? YouTube saving app - yourtube which does it in the YouTube app. SMS pop up...countless ones in Cydia...my favorite is irealsms. Album artwork...don't know I use my zune as an mp3 player. Edit home screen...lockscreen info is one I have used but there are around 5 or more QUALITY other ones that aren't trash. Drag and drop music...once again don't use my iPhone as an mp3 player but you can do this with videos using ifunbox and dropping the videos into ANY folder on the phone and watch them using ifile (has to be the correct format which I'm sure the stood does to) snes roms...open Cydia and there is your extremely popular snes app that tons of people use. Wifi hotspot pdanet, mywi. And you can either pay for the ones that require it or get them by other means. You can get all the apps in the app store for free to if you choose to. So what's your argument now? I also haven't seen a theme on a stood to rival anything I have seen on here by our theme gods barsoverbeats, zausser, initsua, or new guy with promise anthonygiola.
      My argument is that Android does all of that.....STOCK. The reasons I rooted was to delete AT&T bloatware, overclock my processor to 1.2Ghz, and WiFi tethering. SMSreply, Yourtube, themes, alternate media players, ect, ect can all be installed for free, STOCK. No hack needed. And there's not an update every 6 weeks to block the hacks that do exsist. Also, if themes are your gig, there are ROMs for Android, which change the entire feel of the OS, not just the look. Oh, they're free. The drag and drop feature is STOCK. An Android shows up on your computer as a removable storage device. But, I can use an app called doubleTWIST, which looks exactly like iTunes and uses my iTunes library. I know you can steal AppStore apps and Cydia apps (usually don't work well) but there is no way to get them legit for free. Not that the few dollars is the reason I switched. My reasoning was service first and foremost. Second was JB drama and continuous hassle to have an updated, yet jailbroken device. I don't care WHAT area you're in, if you go from Edge to 3G or 3G to Edge, it WILL drop the call. Every iPhone has. I know. I've had them. I understand if you don't have "any" problems with your service, but you've gotta admit that a HUGE number of people have problems with iPhone's reception. I live in Texas and work in the oilfield. In the remote area I've been working recently, my iPhone 4 was an Angry Birds (full version is free on Android) enabled alarm clock. If I went to high ground, I'd get a bar or two, but usually had to reboot my phone to get any service. My Captivate has 3 to 5 bars out here. When in Dallas, my i4 would drop calls like crazy. I've had my Captivate for 3 weeks and am yet to drop one call.

      Like I said before, the iPhone feels amazing in the hand. It is the sexiest phone on the market. It's OS is insanely polished. It is a nice device, but for me, Android is better. I'm not a hater. I've been on iPhone since 07. Why would I all of a sudden bail? Tired of my phone failing at being a phone, that's why.