An analysis of the eight largest mobile vendors’ average selling prices posted overnight Monday by Asymco’s Horace Dediu suggests that Google’s Android phone OS isn’t driving down smartphone prices, nor is it putting pressure on Apple’s iOS-powered iPhones.
Philip Elmer-DeWitt reports for Fortune, “Apple’s average iPhone prices have actually gone up since Android was introduced, and although there has been some price erosion among the other top vendors, it is surprisingly small. ‘Android,’ according to Dediu, ‘is expanding the market without crushing pricing.'”
“According the Dediu, the smartphone market is growing so rapidly (90% per year), that there is limited direct competition between smartphones and a lot of competition between smartphones and so-called feature phones,” P.E.D. reports. “It’s the feature phone makers who are having to slash their prices to compete.”
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