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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. ingesterfella's Avatar
      ingesterfella -
      Quote Originally Posted by w00master View Post
      Yeah... you're never gonna see a swappable battery on the iPhone. I'm fairly sure of that.

      w00master
      Um easy peasy two screws back off pop spare battery in
    1. ShredNasty's Avatar
      ShredNasty -
      Quote Originally Posted by ingesterfella View Post
      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
      Maybe it's because it's an APPLE forum and not an iPhone forum genius. I like Apple. And the iPhone is a nice device. I've said that repeatedly. My personal opinion is that the right Android device (not all) is better for me personally.
    1. CaptainChaos's Avatar
      CaptainChaos -
      Quote Originally Posted by ingesterfella View Post
      Um easy peasy two screws back off pop spare battery in
      Sure! I always have a screwdriver in my pocket. This should be a factory option.
    1. w00master's Avatar
      w00master -
      Quote Originally Posted by ingesterfella View Post
      Um easy peasy two screws back off pop spare battery in
      We're talking about standard. Not something that you or I or any other typical "hacker/techie" person could do.

      Apple is never going to have removable batteries in their iPhone or iPod line. Hell, it's already happening in their notebooks as well.

      w00master
    1. Zokunei's Avatar
      Zokunei -
      Quote Originally Posted by ingesterfella View Post
      Um easy peasy two screws back off pop spare battery in
      I saw a disassembling of an iPhone and you had to unhook ribbons and take of a whole lot of screws and be super careful not to break stuff to get to the battery. I think it was a 3GS though.
    1. Jahooba's Avatar
      Jahooba -
      Hmm, this could potentially bite Android phones in the bum. Apple's products are obviously quality (along with their customer service), and they've had no problem pushing them out the door no matter how much they cost. $200 is an awesome price for what you get, even if Apple rakes in some 40% profits on every phone they sell.

      This is kind of worrying -- Android makers should instead be concerning themselves with increasing the quality of their handsets while hitting just below the iPhone price point. If Android wants to settle into the 'cheap' sector then they won't give Apple much competition.

      Quote Originally Posted by ingesterfella View Post
      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
      I have a Palm Pre, but I theme on an iPod. This isn't an Apple forum, it's a MODDING forum. Leave your elitist bullsht at the door.
    1. alexevo's Avatar
      alexevo -
      Quote Originally Posted by jaas75 View Post
      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.
      This is why you're wrong. A Budweiser at 2 different places costing 2 vastly different amounts($4 vs. $10) means it is still a Budweiser and if you want the same Budweiser then it will cost you more and you know you are getting the same Budweiser for a higher price.

      Macs cost more not because of the hardware, or the OS, but because of both and because they are designed to work with each other in a way that appears to make them superior to PCs. The hardware in a Mac is nothing special that you couldn't otherwise find and put into a non-Apple PC. The software could arguably be hacked to work on said non-Apple PC.

      However, there is the final question of, have you ever asked someone with a Hackintosh how well it works compared to a similarly or same equipped actual Apple computer? They will tell you it doesn't work as well. Therein lies the cost. You pay for seamless integration of a great OS with great hardware(nobody will tell you that Macs have crappy hardware because they don't any more than a similarly equipped non-Apple computer does).

      That, my friends, is why Apple products cost more.
    1. SeedlessOne's Avatar
      SeedlessOne -
      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.

      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.
      This whole statment of yours is retarded. Yes I can build a similar computer for cheaper than buying one from apple. Yes I can find similar spec laptops cheaper than apple.

      And..... Is his point deaf? Oh..... you meant moot.
    1. klouud's Avatar
      klouud -
      I can't believe that none of you guys fighting over the Android vs iPhone thing have mentioned that Apple's appstore blows everyone else's away. The games on the Apple AppStore alone are enough for me to stay with Apple.

      I game on the go - So... there's just no contest. Plus Android devices are throw away - get one this month, and next month is it replaced by another. iPhones are good for 1-2 years and then sell for more than what you bought them for.

      And if you guys think the themes on this site are awesome, you should check out Deviant Art - those themes will blow your mind!!
    1. EskimoRuler's Avatar
      EskimoRuler -
      Apple will never lower the price unless iPhone sales were greatly affected. I'm sure that will be the only factor, and still think that it would have to take months of bad sales for a price change. Apple products have a inelastic demand. People pay the price that apple asks for
    1. u812's Avatar
      u812 -
      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.
      Two years ago I bought a Macbook Pro $2600 and some change.
      After I bought $400 on usless crap of accessories from apple to get what I really wanted.
      I bought it because I was frustrated with my old Win XP notbook from dell.

      Last Sept I went back to a PC because I was frustrated with the limitations of my Mac.

      I bought a Asus notebook that runs win7, it can go all day on a battery with medium to heavy use.
      It runs games faster then my Mac by far.
      I paid $750 from newegg, Its lighter faster and totally adaptable
      Plus I don't feel like something is sticking out of my A** after i bought it.
      So you Annaliese's of a pc is incorrect.

      Quote Originally Posted by ShredNasty View Post
      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.
      Yes but you have to spend countless hours to do what you can already do no an android.
      Your here for the same reason I'm here.
      I want my Iphone to work with any carrier my phone is capable of working on.
      Plus I get the same phone service for $40 buck less on T-mobile and no contract
    1. ShredNasty's Avatar
      ShredNasty -
      Quote Originally Posted by u812 View Post
      Yes but you have to spend countless hours to do what you can already do no an android.
      Your here for the same reason I'm here.
      I want my Iphone to work with any carrier my phone is capable of working on.
      Plus I get the same phone service for $40 buck less on T-mobile and no contract
      I'm here because I like all things tech and regularly visit and post on other sites.

      Apple would have to do a whole lot more for me to be happy with the iPhone experience. A simple unlock or multi carrier release would not do the trick. Every iPhone I've ever had (2G 3G 3Gs and i4) has had sub-par reception and I've dealt with it because like, OMFGBBQ! I have an iPhone. But the luster is now gone. It is NOT AT&T! How do I know? Well, my company has a very old field cell. To be exact, a 13 year old Nokia. There is also a 6 year old Motorola flip, and my Captivate. ALL AT&T.

      Nokia - 5 bars.
      Moto - 4 bars.
      Captivate - 4 bars.
      iPhone 4 - NO SERVICE.

      Granted, I'm in an Edge only area, but out of 4 AT&T phones, from cheap to expensive, old to new, only one has an issue.

      Every single person at Cupertino that has anything to do with the radio in the iPhone from hardware to software and the superiors who approve of their doings, needs sh!tcanned immediatly, and replaced with a team who's goal is to deliver the best reception on the planet FIRST, and Angry Birds second. I can't understand claiming the title of the world's best phone, when it can't proficiently place calls in an urban setting.

      I will undoubtedly be called a troll, or a liar. Most wil claim to have never had any issues with reception. I know the drill.....
    1. xclusiveiphone's Avatar
      xclusiveiphone -
      Apple will never compete pricing with competitions. Until a new product comes out, the price will remain the same.
    1. delizaza23's Avatar
      delizaza23 -
      I wrote before and I am writing again, there will be a day when iphone users like me are going to throw iphones and go for other beautiful devices, that day is not here yet but very close. Apple can continue work on how to make unlock harder.
    1. x2dope's Avatar
      x2dope -
      Quote Originally Posted by ShredNasty View Post
      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.

      all valid points except your dallas problem. I live by dallas and go there often and never drop a call on my iPhone 4. (the remote area I understand your issue but not the city of dallas). Anywho maybe if the Android OS ever gets good hardware I would consider getting one but until its lag free I'll stick it out with my iPhone.
    1. Zokunei's Avatar
      Zokunei -
      Quote Originally Posted by x2dope View Post
      all valid points except your dallas problem. I live by dallas and go there often and never drop a call on my iPhone 4. (the remote area I understand your issue but not the city of dallas). Anywho maybe if the Android OS ever gets good hardware I would consider getting one but until its lag free I'll stick it out with my iPhone.
      I thought it was the OS that makes them laggy. A lot of Android hardware owns the iPhone's.
    1. Saved0ne's Avatar
      Saved0ne -
      Personally, in my opinion and experience, I think that the iPhone prices are good the way they are.
      Sure Android is bringing down prices, but you can't do as much as an iPhone, nor are they as elegant.

      When you see an iPhone you think "Wow, that's nice" but, when you see an Android you think "It's like an iPhone" at least that's what seems to be the case. But like I said I think Apple won't lower prices due to the fact that you can buy iPhones for as low as $99 - $400.

      What do you think?
    1. x2dope's Avatar
      x2dope -
      Quote Originally Posted by Zokunei View Post
      I thought it was the OS that makes them laggy. A lot of Android hardware owns the iPhone's.

      Yeah not all android phones have good hardware...the ones that do are held back by the OS...I agree with you I just left that out I suppose.
    1. Zokunei's Avatar
      Zokunei -
      Quote Originally Posted by x2dope View Post
      Yeah not all android phones have good hardware...the ones that do are held back by the OS...I agree with you I just left that out I suppose.
      That's why I said a lot. Not even most, but a lot.
    1. krosis's Avatar
      krosis -
      Afaik, Android does not make much use of the GPU for UI acceleration. That's most of the reason it seems laggier on slower hardware. They also made some significant performance improvements in 2.2, so hardware stuck on 2.1 or earlier also performs slower.

      By contrast, WiPho7 and iOS use the GPU to accelerate the springboard and transitions. That's why the original iPhone and 3G were so smooth for only having a 400MHz CPU, and that's why all WiPho7 devices are required to use that Qualcomm SoC - it's the only currently supported GPU, and GPU is mandatory for the interface.