Fresh Apple: The Apple Blog - Will Apple cave to mobile operators pressure; iPhone selling for $200 or less?

Monday, June 9, 2008

The Apple Blog - Will Apple cave to mobile operators pressure; iPhone selling for $200 or less?

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Will Apple cave to mobile operators pressure; iPhone selling for $200 or less?
A turn off for some people who drooled over the iPhone was the price. Yes they wanted it, but they weren’t willing to drop $399 for the iPhone 8G, and they wouldn’t even think about paying $499 for the iPhone 16GB. I know people like that, thing is the people I knew could easily afford to purchase the extremely popular smartphone they weren’t about to spend the money. If you’ve balked at the price it even though you wanted the iPhone you most likely will see a price drop.

Financial Times is reporting that Apple has caved to the pressure from mobile operators and agreed that they can subsidize the latest iPhone. Of course, this is great news for Apple it means that they will be able to reach its target of selling ten million iPhones in 2008 a lot sooner since more people will be willing to spend the money.

The big question is how much will the price drop? Analysts are saying that AT&T could provide a $200 subsidy on the iPhone which means the customer could purchase the iPhone for $200 or less. Those familiar with the issue are saying that Apple has finally accepted that the new iPhone should be subsidized. The current iPhone was so pricey was because there was not subsidy.

Mobile operators won’t mind taking on the cost of the iPhone because the iPhone provides them with other money making opportunities. Arrangements have been in place between Apple, Deutsche of the UK, France Telecom, and O2. What are the companies saying about this issue? Nothing all companies declined to comment on this subject.

The iPhone has done very well in a short time. Apple is now the worlds #3 smartphone vendor. In the U.S., they have done even better claiming the#2 spot with 20% of the market share. They are far behind the #1 smartphone vendor, RIM, who has 42 percent of the market share. The success with the Apple iPhone is very impressive especially when you consider that it didn’t appear on the scene last year. It was announced at the MacWorld Expo on January 21, 2007, and it was introduced on June 29, 2007. Time named it invention of the year.

A lower priced iPhone 2 is great news for those longing to get their hands on this hot device but were reluctant to pay its high price. Now if Apple would only open it up to other operators, I would be able to claim my piece of iPhone goodness.

With a lower priced iPhone Apple should have no problem meeting its goal of selling 10 million iPhones in 2008. I honestly believe they are going to reach that goal anyway.

Will we see a lower priced iPhone? We don’t have too much longer to wait the WWDC kicks off tomorrow and all answers surrounding the much hyped about iPhone 2 should be revealed. Are you going to purchase the next generation iPhone if the price is lowered, or where you planning on buying it anyway?

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