Industry analysts believe Apple’s introduction of the 3G iPhone at the lower price point will finally and officially make Apple a player in the mainstream mobile phone market. However, they do warn that this may come at a price – the cannibalization of Apple’s iPod sales. Despite this possible loss, analysts also go on to add that another “halo effect” may take place for Apple’s Mac market, causing their growth rates to go even faster. “In comparison with the iPod, which is a simple device, the iPhone is a far more sophisticated and versatile device. The iPhone halo effect may not be limited to the consumer market, but may invade the business market as well,” said Needham & Co. analyst Charlie Wolf.
Set aside all the analyzing, and it still comes down to one point: the price. With such a drastic price cut, the device is an option for a lot more consumers. Keith Bachman, an analyst at BMO Capital Markets, says this price cut makes the iPhone “…more in line with comparable products.” Even further, the 3G iPhone will be $100 less than the cheapest iPod Touch, so why would anyone buy the more expensive, less functional Touch? These are all good questions, but I’m sure Apple has thought about this long and hard. The 3G iPhone sales will make up for everything, in my opinion.
Via [Market Watch]