ft.com/techblog

Now that the iPhone has arrived, the real speculation can begin. Just how big of a hit will Apple’s new-fangled gadget be? With the cheapest of Apple’s new phones priced at $499 -  more than twice the typical cost of a Motorola Razr - the iPhone is likely to remain beyond the reach of the masses, for the time being, at least.

In 2001, the first iPods were also priced seemingly out of reach. The basic 5GB model cost $399, with a 10GB music player available for $100 more. It wasn’t until 2003 that the iPod fell below $300. Today, an iPod shuffle can be had for as little as $79, while higher-end video iPods retail for $349.

When he laid out his rationale for pricing the iPhone in his keynote address at MacWorld, Steve Jobs said the phone’s $499 price tag was the same a person might pay for an iPod and a smart phone separately. That may be compelling for some, but many potential customers are likely to be waiting a couple more years until their price of the handset comes down - or at least until their existing phone contracts run out.

January 10th, 2007 in Uncategorised | Permalink