Stephen Withers
Monday, 08 December 2008 04:53
Opinion and Analysis
Page 2 of 2
Let's face it, the price you pay for a mobile phone with a contract is only marginally related to the actual cost. Carriers are more concerned with the total profit they'll make over the life of the contract.
Furthermore, the number of commuters I see on the train using both an iPod and a non-Apple mobile phone (recent models in both cases) is anything to go by, suggests an unmet demand for a cheaper iPhone.
And it's not completely unthinkable that Apple could sacrifice margin for volume.
The question is this: is an iPhone more like an iPod or a handheld computer?
Apple has found it very profitable to stay out of the low end when it comes to computers, preferring to see higher-end models at higher than average prices.
Yet while it has stayed out of the absolute bargain basement in the music player world, it does offer iPods at a fairly wide range of prices, including the iPod shuffle which has become almost a stocking filler for some families.
The way the economy is going, Apple may well find that bringing a $US99 iPhone to market is essential.