“Apple has the room to cut the price of the iPhone to where it could take command of the smartphone market, analyst Charlie Wolf of Needham Research says today in a research note,” MacNN reports.
“The financial expert estimates that the average, unsubsidized price of an iPhone 3G in the summer was $666 and so would give Apple a nearly 50 percent gross margin on each sale as well as a heavy subsidy from AT&T of $450,” MacNN reports.
MacDailyNews Note: The Apple I, designed and hand-built by Steve Wozniak, was Apple’s first product. It went on sale in July 1976 for $666.66.
MacNN continues, “Both give Apple a large amount of space to adjust its price and could see the phone maker drop the price of an 8GB iPhone to $99 while still supplying a comfortable 42.3 percent margin.”
MacNN reports, “Any such price drops would be potentially devastating to competitors in the market, according to Wolf. The analyst believes that a $100 cut in the iPhone 3G’s advertised price could ‘double or triple’ projected sales and quickly overtake most other smartphones on the market and leave only successful but ‘niche’ smartphone manufacturers like Research in Motion, which produces the BlackBerry.”
Full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]