Monday, January 10, 2011

iPhone Pricing: 3GS Lower, Wonder If More Is In Store From Apple And Verizon Tomorrow

Just today, I learned that Apple has lowered the price of the 18 months old iPhone 3GS to $50.  So this begs the question why and what will fill the $100 price point.

We can easily speculate that the iPhone 3GS isn't sell well at $100 compared to the $200 iPhone 4 so lowering the price of the 3GS to $50 makes it more palpable for those looking for an iPhone but aren't willing to go into the $200 range.  And with a $150 gap between the iPhone 4 and the 3GS, it makes it an easier choice to make.

But what will sit at the $100 price point?  It is hard for me to fathom Apple leaving it wide open for Android or anyone else on the market.  And while Apple might see fit to lower the price of the 16GB iPhone 4 to $150 to reestablish the $100 gap between the 3GS and the iPhone 4, I doubt that will happen.

So, I am going to look into my transdimensional pool and travel into another universe where anything is possible.  

First, Apple lowers the price of the iPhone by $50.  Makes sense.  This will put a lot of pressure on its competitors.  And between the Samsung Galaxy S at $200 or an iPhone, its easy to go with the iPhone $50 cheaper.

Second, Apple lowers the price of the iPhone 4 by $100 to get the iPhone into the $100 price range.  This will hurt the market of its competitors big time. And I think this is a very likely scenario.  In any kind of contractual agreements, there are no longer exclusive agreements with Apple which may allow ATT to buy iPhones at a lower price.  

Between the $50 or $100 price drop scenario, I think the $100 is far likelier to happen.  

A third unlikely scenario is the launch of a new iPhone model sitting at the top.  Maybe Apple will surprise us with an LTE iPhone that commands a premium with 32 GB of storage, which would give Apple reason to lower the price of the iPhone 4 to $100 or $150.  Any number of new features would enable Apple to do make this move.  I can see folks willing to pay a premium for the fabled white iPhone or one with NFC capability.

What is more likely is that lowering the iPhone 3GS to $50 provides ATT with the coverage and competitive edge it needs to convince new users and some upgraders to stay with it using the 3GS as bait.  

However, Steve Jobs goes to NYC just to say "you can now buy the iPhone to run on Verizon" seems a bit much.  Perhaps he's there to clarify his previous statements disparaging the CDMA technology or unveil iPhone 4G.  

No comments:

MacBook Air M2 - I Love It And Any Laptop You Get Will Always Be Right For the Time

The 2016 MacBook sitting off to the side still has some value as I gleefully starting using my MacBook Air M2 that I got for a decent price ...