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Apple's New Business Strategy: Act More Like Android

Authored by: Steven Blum — Oct 24, 2011


Part of Android's original strategy was flooding the market with lower-priced alternatives to the iPhone just as it was first hitting AT&T. Those put off by the iPhone's original $499 price point could enjoy a G1 for just $129. Competitive pricing and a diverse line of phones was Android's raison d'etre and these factors worked together like magic, leading to a 42.4% market share, booming international sales and a loyal Android fanbase. 

Now, however, there's reason to believe Apple is beating Android at its own pricing game.

For proof, just look at the phones being released. A Motorola Droid Bionic on Verizon costs $300 these days, while a Samsung Galaxy S2 or HTC Amaze from T-Mobile costs $230 and $260, respectively. The soon-to-be-released Motorola RAZR and Samsung Galaxy Nexus are said to be priced at $299 each. In contrast, an iPhone 4S costs just $199, while the thriftier shoppers can snag an original iPhone 4 for just $99 or an iPhone 3S  for zero dollars. Where Apple was once a premium brand for an elite clientele, it is now priced more reasonably than the competition.

We've talked before about how the mobile phone world is a land grab, and it's still true: the number of people who could own a smart phone but don't yet is still quite high. Whoever reaches these folks first wins. Apple seems to have realized this and is behaving a lot more like Android used to be behave, before it somehow became more elitest to own an Android than an iPhone.

I realize that you get what you pay for and I know that the iPhone 4S isn't dramatically different from the original iPhone 4. But I don't think this will matter to Apple in the long run: the company sold more than four million iPhone 4S smartphones over its debut weekend. Clearly, Apple's competitve pricing could become a big threat to Android. 


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Source: NY Times

Steven Blum has written more than 2,000 blog posts as a founding member of AndroidPIT's English editorial team. A graduate of the University of Washington, Steven Blum also studied Journalism at George Washington University in Washington D.C. for two years. Since then, his writing has appeared in The Stranger, The Seattle P-I, Blackbook Magazine and Venture Villlage. He loves the HTC One and hopes the company behind it still exists in a few years.

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