“In a 36-page report to clients issued Monday, a Credit Suisse team led by Kulbinder Garcha took a close look at the iPhone’s price elasticity — Econ 101 jargon for the question: ‘If I lower the price of my widget, how many more will I sell?'” Phillip Elmer-Dewitt reports for Fortune.
“Garcha et al.’s focus is the iPhone 3GS, which Apple last month began offering to its partners for an ASP (average selling price) of $325, allowing the likes of AT&T, Vodafone and Rogers to give it to customers at subsidized prices ranging from $0.99 to $0.00.,” P.E.D. reports. “How does this change the competitive landscape?”
P.E.D. reports, “HTC and Samsung are the most exposed, with a 22% and 20% share, respectively, of the $250-$400 market. The impact, according to this report, could be most severe on Research in Motion ‘given ongoing concerns around its product portfolio.'”
Read more in the full article here.
[Thanks to MacDailyNews Readers “Dan K.” and “Brawndo Drinker” for the heads up.]
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