Apple has decided to slash the iPhone price from $599 to $399. This is a a huge discount of 33%.
The reason Apple lowered the price down is because it wants to make it more affordable and to achieve its sale target of 1 million iPhone by the end of September.
There is no doubt that the iPhone was way overpriced. Taking $200 off does make it more affordable and attractive. Considering that an iPod costs almost $300 the iPhone price looks much more reasonable presently.
There is little doubt that its sale will spike in the coming months. Regardless how expensive an iProduct is people are willing to pay for it. A couple of years ago the iPod was over $500 and it was selling like hot cakes. No one would have thought that people would be willing to pay that sum just to be able to listen to 10,000 songs they probably don’t even have.
Apple most probably relied on its marketing research to determine the “right affordable” price to increase its sale exponentially and boost up its revenue even with a lower profit margin.
So should you buy an iPhone now?
We believe the iPhone is a great product with innovations. It is basically a micro iMac. It is like all Apple products, intuitive and easy to use. It operates smoothly and elegantly.
Although the price is much more reasonable now we still feel it is overpriced. But then all Apple products are overpriced. An iPod is an iPod, it is not called a MP3 player.
As a audio-video player, PDA, computer and cellular phone combined the iPhone is not that expensive. A good PDA would cost about $300 by itself.
We believe there will be a second generation of iPhone with more features, like voice recorder, movie recorder and GPS, since these are popular features in mobile phones.
Also to consider is the network reliability and cost. Presently only AT&T is providing coverage to the iPhone in the US and there is basically no competition. To some this problem can be resolved through hacking. But for most they will have to fork out the rate imposed by the network provider.
If you like the iPhone you will probably buy it in the coming months. If you are already happy with your mobile phone then there is no need for you to switch to the iPhone. Wait for the next generation.
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