Amid the gloom and doom for Apple’s profitable iPhone business comes an interesting piece from Tero Kuittinen in Forbes.
The $400 price point is already in real trouble – and going will get much tougher if Apple’s new value iPhone is priced at or below $350 in retail as expected. The budget iPhone is likely to cost $0 with a two-year contract, while the high-end iPhone continues to cost $200 on contract. That is a major problem for many vendors who have been making bizarrely ambitious pricing decisions.
If BlackBerry, HTC, and Nokia have trouble selling their smartphones at prices lower than the iPhone, what will happen when an iPhone can be purchased for less than the competition.