rajsekar

The iPhone: Lessons on Industry Pricing Power

I am waiting for a $49 iPhone for the holidays, or may be buy one iPhone for $99 and get one free offer from AT&T. What idiots! People were eager to get an iPhone because it was a rare gadget in July 2007. It slowly became a mainstream phone with release of 3G in June 2008 and price reduced to $199. Now it becomes a bulk commodity with $99 price range. Didn't everyone see this phenomenon with Moto Razr phone four years ago. Demand for iPhone will drop with this price cut because of this psychological issue. What's the big deal if every Tom, Dick and Harry has an iPhone? People would rather use a Pre, RIM, Nokia thin phone or something else. Apple has made a Porche into a Toyota within two years and this is going to hurt them badly. In the same argument, why not reduce Macbook prices to match Dell, HP and Toshiba. Am I missing something here?