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The recently announced price drop of the iPhone 3G to $99 changes the dynamics of the mobile phone industry. Research by analyst Roger Entner from Nielsen believes the cut completely changes the expected and perceived worth of every phone already on offer and wont just hurt smartphones. Any phone over $49 is kneecapped and will look like either it costs too much to make or that the carrier is asking too high a price.
The researcher expects Apple’s change to force changes in pricing for all phones. Either phones prices will drop to compete, or phones will become more advanced. Either way it benefits the consumer.
Think about it, what kind of phones could you get for $100? A basic one with a camera. But now you can get a smartphone. Who would ever want a basic phone again?
How do you guys think this will effect the industry? How will this effect Windows Mobile?
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