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The meaning of the $99 iPhone 3G to Pre and RIM

Sections: Apple News, Conferences, iPhone, iPhone/iPod touch/iPad, Originals, WWDC

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iPhone vs. Palm Pre

At this year’s WWDC, Apple announced the new iPhone 3GS. While this was a pretty interesting refresh to the iPhone line, I believe that the lowering of the iPhone 3G 8GB to $99 is much bigger news. For a while now, people have been preaching that Apple needs to hit the $149 price point or lower in order to make their way into a more mainstream market. With this announcement, they have. No longer is the iPhone 3G an expensive product when it comes to phones as almost any phone these days will run you at least $99 unless they come free with a 2 year contract.

As far as where RIM and Palm stand in this market now, that is very fascinating. Palm recently released the Pre at a price point of $199.99 (after a $100 rebate), a whole 100% more expensive than the iPhone 3G. Now, I’m not going to get into the price of plans, early termination fees, and all of those extra fees brought on by carriers, I just mean the cost of the hardware (the thing that people first notice). With this price, Apple has taken both the Palm Pre and many of the Blackberrys out of the market as far as initial price goes.

The point I’m trying to make is that Apple really nailed it with the price on the iPhone 3G 8GB model. Now not only do they have models competing in the more expensive smart phone market but the average consumer market as well. I think we are going to see a nice surge in iPhone sales in the coming months.

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