ZDNET has a nicely contrarian take on the idea of a cheaper iPhone:
http://www.zdnet.com/why-apple-doesn...84/?s_cid=e539
Quote:
Given that the iPhone continues to sell really well -- we'll see how good sales were over the last quarter come the next earnings report due January 24 -- it's hard to see a real justification for a cheaper iPhone. A radically cheaper iPhone would undoubtedly cannibalize sales from the higher priced (and higher profit margin) handsets. Analysts are already speculating that the iPad mini is cannibalizing sales of the full-sized iPad, despite the petite tablet being a premium product with a premium price tag.
Throwing a significantly cheaper iPhone into the market could be good for sales, but if Apple tries to boost market share at the expense of profit margins, then it could be interpreted as the Cupertino giant blinking in the face of competition from Android and manufacturers such as Samsung and HTC.
What has happened to the PC market and the associated PC OEMs shows what happens when prices are slashed in favor of market share. This is not a road that Apple wants to start going down.
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