Monday, October 27, 2008

$99 iPhone - It's a Matter of When

It's traditional for cell phone makers to drop the price of their devices over time as costs come down.  For the iPhone, I think we'll see a $150 before $99.

But Apple has surprised me lately with moves I didn't think they had the DNA to formulate the behavioral characteristics to make.  Gone are the days of "my way or the highway" approach.  Sometimes.

Take the $200 drop on iPhone just this July for the iPhone 3G.  A younger Jobs might have stuck to his guns.  Now, it's Apple talks about sacrificing near term margins to leave no umbrella room for competitors.

But the impact of a $99 is mind-boggling.  If adoption rates increase 2-3 times, it truly leaves very little room for competitors to move.

Link:  Crunchgear

My only question is what happens to the iPod Touch.

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