Apple iPhone Can't Ignore Android Price, Market Share Challenge
News Analysis: There are two reasons why Android phones are outselling everything else. They're ubiquitous and they're cheap. There is no reason why Apple can't make and sell a smartphone that's just as cheap.There's no question that Apple's iPhone has a large and devoted following. Some have said their devotion rises to the level of religious fervor. But the fact is that Apple and the iPhone need more than just a religious following. Apple needs a phone that makes sense to its users if it's going to stem the onslaught of Android phones around the world. As Nick Kolakowski pointed out in his article making a number of suggestions about how the iPhone can fend off the rapid growth of Android device sales, iPhones cost too much. They appeal to people who need a smartphone and for whom money isn't a significant object. In the United States, you can get a 16GB iPhone 4 for just under $200 with a two-year contract from AT&T or Verizon Wireless. On the other hand, you can get Android smartphones for free from a variety of carriers.
It's pretty hard to beat free if you need a smartphone, and that does a lot to explain why Android phones are spreading faster than iPhones. Another part of the reason is that not everyone in the global economy makes enough money to afford an iPhone regardless of whether they want one. What's equally important is that not every customer with a need for a smartphone has access to a contract that heavily subsidizes their phones. So for comparison, perhaps a better way to look at the true price of a smartphone is to compare the unsubsidized price.