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12-27-2010, 10:40 AM #1
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).
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
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12-27-2010, 10:46 AM #2
free iphones is the way to go... I'm ok with spending 200 though...
12-27-2010, 10:49 AM #3
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
12-27-2010, 10:55 AM #4
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.
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12-27-2010, 10:57 AM #5
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.
12-27-2010, 11:38 AM #6
Don't think they will lower their prices but it would be nice if they did!
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12-27-2010, 11:38 AM #7
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.
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12-27-2010, 11:45 AM #8
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
Last edited by dq13; 12-27-2010 at 11:46 AM. Reason: Automerged Doublepost
12-27-2010, 11:45 AM #9
@kingbijan: the android is a legitimate competitor, that was established in the article.
12-27-2010, 12:03 PM #10
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.
12-27-2010, 12:17 PM #11
12-27-2010, 12:21 PM #12
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12-27-2010, 12:30 PM #13
Last edited by vantheman169; 12-27-2010 at 12:35 PM.
12-27-2010, 12:37 PM #14
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
Last edited by jaas75; 12-27-2010 at 12:46 PM.
12-27-2010, 12:47 PM #15
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.
12-27-2010, 12:59 PM #16
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12-27-2010, 01:06 PM #17
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."
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.
12-27-2010, 01:11 PM #18
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.
12-27-2010, 01:17 PM #19
12-27-2010, 01:20 PM #20