Friday, September 07, 2007

iPhone Price Drop

I am pretty surprised that there are a lot of people whining about Apple dropping the iPhone's price $200. First, this is a consumer electronics device. All CE products drop in price significantly. Second, everybody knew that there was going to be a big price drop sometime below the holidays. Third, as the NY Times puts it:

Mobile phones tend to be more prone to price declines because the pace of product introductions is faster than for televisions or DVD players. Motorola, for instance, introduced the ultrathin Razr phone for $499 with a two-year service contract in early 2005. Six months later, Motorola realized it had a hit on its hands and dropped the price to $199 in an effort to aim at more mainstream buyers. By the end of 2005, the price was $99.

Why all the whining?

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