It changed slowly but it looks like the $199 starting price point for smartphones is here to stay. Time Inc pointed out an interesting article on CNNMoney that tries to explain why all smartphones start selling at $199. It is slightly odd that no matter what the device they always seem to sell for $199 be it a BlackBerry, iPhone, or Android device. Don’t get me wrong carriers and resellers discount most of them to free over time but carriers seem to be stuck on the $199 price point.
It makes me wonder what the magic is of $199. Booz & Co consulting firm partner George Appling claims that “The obvious answer is that $199 is a magic price point for smartphone volume.” That could definitely be but I think it is just because carriers have managed to condition us that a new device will cost $199 with a new contract. Curve devices have usually gotten a $50 discount to $149 but carriers do not seem eager to change it up based on how much the device costs them…
What do you think?
DavidB ( View Profile) - Posts: