Cupertino, CA-With the price ceiling on other electronic phones capped at $199 with the new 3G iPhone and its entry onto the marketplace, other devices will feel the pressure to discount their products.
Other manufacturers and phones such as T-Mobile HTC Shadow, Pantech’s Duo and the Motorola Q9 will feel the pressure to keep their devices somewhere between $99 dollars and $199.
With the iPhone the undisputed cream of the crop, the other devices will have a lot of pressure to keep their phones priced considerably less than the 3G phone introductory price of $199.
The July release of the iPhone is already having a major effect on the marketplace.
Sprint has announced that its new electronic communication device, the Instinct will be offered for sale at $130 dollars (provided customers use a $100 dollar rebate and two year contract offer) instead of the earlier announced retail price of $200 dollars.
The pressure for smart phone manufacturers will not be to try to go head to head with the Apple iPhone or Apple products, but to learn and to go where Apple is not.
The manufacturer that creates a truly rugged telephone, or the first new generation phone with excellent imaging capabilities could feasibly steal the thunder back from the iPhone.
The iPhone is not particularly durable, nor does it have any more than average imaging ability.
The iPhone also lacks a physical keyboard and is featured on a single carrier.
The way to beat the iPhone in the marketplace is not to compete head to head but to change the playing field, and develop a better product, such as a phone with a better touchscreen.