iPhone could hit $99, rule smartphones

Apple iPhone 3GApple has the room to cut the price of the iPhone to where it could take command of the smartphone market, analyst Charlie Wolf of Needham Research says today in a research note. The financial expert estimates that the average, unsubsidized price of an iPhone 3G in the summer was $666 and so would give Apple a nearly 50 percent gross margin on each sale as well as a heavy subsidy from AT&T of $450. Both give Apple a large amount of space to adjust its price and could see the phone maker drop the price of an 8GB iPhone to $99 while still supplying a comfortable 42.3 percent margin.

The company's dramatic growth in non-GAAP revenue could also give Apple a significant amount of breathing space to play with the iPhone's price by cushioning more substantial price cuts.

Any such price drops would be potentially devastating to competitors in the market, according to Wolf. The analyst believes that a $100 cut in the iPhone 3G's advertised price could "double or triple" projected sales and quickly overtake most other smartphones on the market and leave only successful but "niche" smartphone manufacturers like Research in Motion, which produces the BlackBerry.

Price drops have regularly contributed to phones leading the sales charts, particularly in the US where subsidies aren't often as steep as in Europe. Although it had a strong launch, the iPhone 3G was outsold by RAZRs in the summer due to the Motorola's phone free or near-free pricing with many carriers. BlackBerries have also taken two out of the top five positions in NPD phone sales figures for the summer as the Curve and Pearl began selling for $100 or less on certain contracts.

In contrast, many Palm OS and Windows Mobile smartphones often sell for more than $100 when subsidized, while Nokia rarely offers its smartphones tied to carriers in the US and currently prefers to sell most of them as unlocked models at higher prices.

Source: electronista

Tags: Apple, BlackBerry, iPhone, mobile phones

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
Intel plans to release 5G and advanced LTE chips in order to close the gap with its rival Qualcomm
 
The company remains at work on a bigger point release, iOS 11.2
 
The OnePlus 5T's Full Optic AMOLED display features a new Sunlight Display
 
Face ID once again fails critical security test
 
Toshiba has entered into negotiations to sell its money-losing PC operations to Asus
 
Microsoft has decided to rebrand the payments framework
 
Galaxy J2 Pro is equipped with a 1.4GHz quad-core Snapdragon 430 processor and 1.5GB RAM
 
The Top500.org website celebrates 24 years of activity
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
   1234
567891011
12131415161718
19202122232425
2627282930  




Poll

Do you use microSD card with your phone?
or leave your own version in comments (4)