Who knew? This is interesting. I think it is a dumb business model.

http://money.cnn.com/2010/09/01/tech...rice/index.htm

 

 

Who cares. Do you want to spend more for the phone? I know I don't.

 

Makes sense....similar to "only $9.99, or $19.99".....the number works for consumers.

 

Neither do I. I'm just questioning the business model from a business perspective.

 

im guessing iphone started that whole $200 and now alot of other smartphones need to eighter beat that or be close enough to be the competition..im a big iphone fan excuse me lol

 

Prob what analysts consider the price point sweet spot

 

love the iphone

 

i rather pay $199 or $299 compared to what others pay around the world.

 

The iphone did not start that price point for smart phones. That price point has been around for quite a while. The iphone was much more expensive than $199 when it first came out. It was, as rza suggested, a determined "price point sweet spot" that brought the price of the iphone down to $199.

edit: While the iphone did not create this price point, it did reinforce it. It's hard to justify offering a phone for more than what the iphone costs.

 

It's a calculated amount that companies have figured out. That's simply the amt a majority of people are willing to pay for most smartphones.

Personally I think it's a crock because the prices of phones are very very inflated. If companies wanted to really be competitive they'd be lowering the price of their phones so that more people can have them, thereby increasing the demand for data plans, thereby generating more money in hopes that they would spend that money to upgrade their severely outdated infrastructure.