Comments on: Consumers want cheaper smartphones

By: Thought

Thought — Tue, 11 Jul 2006 03:16:41 +0000

I would pay $300 to $400 for a good smartphone, but I realize that I am most likely in the minority, because I’m a big gadget hound.

I agree with Jamison above…probably most people will only go up to around $100 to $200.

I don’t think, though, that the industry can offer low prices at first, grow the market, and then raise prices later. Once you’ve trained consumers to expect lower prices, it is awfully difficult to get them to accept higher ones. Now, that doesn’t mean that manufacturers shouldn’t offer lower prices anyway; there may be some virtue in sacrificing pricing for greater volume of sales.

I do think, though, that the carriers have incentive for subsidizing lower prices: they get to sell more lucrative data plans.

By: Thought

Thought — Tue, 11 Jul 2006 03:16:00 +0000

I would pay $300 to $400 for a good smartphone, but I realize that I am most likely in the minority, because I’m a big gadget hound.

I agree with Jamison above…probably most people will only go up to around $100 to $200.

I do think, though, that the carriers have incentive for subsidizing lower prices: they get to sell more lucrative data plans.

By: Jamison Banks

Jamison Banks — Mon, 10 Jul 2006 19:14:30 +0000

Honestly, smartphones and PDA’s in general? $99 to $250. If they can’t price a unit down there, ain’t buying. The prices are all markup. R&D and marketing are what drives prices up, the rest is pure profit.

Bottomline – the industry needs to grow the market first, take the profit hit, and raise prices later.

By: Jamison Banks

Jamison Banks — Mon, 10 Jul 2006 19:14:00 +0000

Bottomline – the industry needs to grow the market first, take the profit hit, and raise prices later.