Philip Elmer-DeWitt claims that Google’s Android OS and all those copycat smart phones are actually making the world a better place to sell iPhones:
Apple’s average iPhone prices have actually gone up since Android was introduced, and although there has been some price erosion among the other top vendors (orange line in the chart above), it is surprisingly small.
What? How can that be? All those buy-one-get-one-free Android, BlackBerry, and Windows Phone smart phones should be pushing prices down, right?
The smartphone market is growing so rapidly (90% per year), that there is limited direct competition between smartphones and a lot of competition between smartphones and so-called feature phones. It’s the feature phone makers who are having to slash their prices to compete.
OK, I get it. The iPhone is a smart phone. Android, BlackBerry, Windows Phone and others are all feature phones.