Apple is by no means the market leader when it comes to smartphones. They are certainly a force, but with a resurgent BlackBerry platform, the strong and accelerating Android market, completed with the Microsoft offerings, they need to stay on the top of their game, which means making sure their products don’t become passe and overpriced. Speaking of prices, the meme around the internet today is that Apple is contemplating a reduction in the monthly rates that the iPhone masses pay monthly. A ten dollar monthly deduction.
Why?
To be brutally honest, Apple must be worried. The Palm Pre (should) mark the return of Palm to the forefront of the smartphone niche, and that is nothing but trouble for Apple. Unlike Android or WinMo, the Pre is attacking the iPhone on its home turf. Given the dependence that Apple has shown on the iPhone to continue to clock in the revenue and profits that its investors deem mandatory, the Pre could put serious and long term dents in the Apple stock price if it is even rumored that the Pre is stealing the iPhone’s dollars market share.
And, assuming that the Pre does not launch before the new iPhone comes out shortly, this added bonus to new users will give Apple a new leg up against the forthcoming Pre. I see this as a completely defensive measure. You have seen, even here on Techgeist, stories about the next generation G1. Apple is facing a unprecedented level of competition for their product. And, given the economy, budget conscious customers are yesterday’s crowds camping for the latest Apple release.
Cut the price, get a new generation out, and pray that the Pre flops. The new mantra in Cupertino.
