Needham Research analyst Charlie Wolf says Apple has room to cut the iPhone price in half and still make a tidy 42.3 percent profit margin. That means iPhones could be the same price as the $100 Blackberry Curve and Pearl SmartPhones. If Apple did that, it would make the introduction of the much desired (by me) BlackBerry Storm a moot point. It would be a way for Apple to sell ungodly amounts of iPhones, not that last quarter's iPhone numbers weren't insane already.
While that would be great for Apple, it would be terrible for all of us, customers who like choice, expandability and upgradability. Remember, the iPhone's only available on AT&T's network, is strongly interdependent with iTunes, and is a closed box that requires users to buy a new phone when they want to upgrade storage or the battery.
Apple's on a roll. It's been a great year plus, thanks to the iPhone and iPhone 3G. But like falling gas prices prolong our dependence on foreign oil, cheaper iPhones could mean more Apple dominance in SmartPhones. But maybe that fear will even further spur on Blackberry, Nokia, Samsung and others to think about more than just hardware... but software and media, to create a better SmartPhone market for all of us.
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