Will Cheaper iPhones Create Converts?

September 25th, 2009

Even a company as glitzy and popular as Apple needs to cut prices to compete in this economy – nobody can escape basic economic relationships between price and demand.

  • Hoping to sustain the momentum for its trendy smart phone in the middle of the recession and among increasingly prominent competitors, Apple decreased the price of its entry-level iPhone 3G from $199 to $99.
  • Main competitors include Palm Inc. and Research in Motion Ltd. (creator of the BlackBerry line of devices).
  • Apple also decreased the price of some of its other products, including the MacBook Pro, the MacBook Air, and the Mac OS X Snow Leopard operating system.

Facts & Figures

  • Apple has sold more than 20 million iPhones so far.
  • The new $99 iPhone 3G could increase iPhone demand by as much as 50%.

Best Quote

“These are very aggressive prices.” — Richard Doherty, Analyst with Envisioneering Group (a technology consultancy)

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