Sam Davyson


Why aren’t there cheaper smart phones?

19/02/10 - 16.25

People talk about the “apple tax” but the HTC Desire costs the same on pay as you go as the iPhone 3GS does (both £450). Yes you can argue that the HTC Desire better but we all know that Apple will be catching up in most areas in June and they will probably keep the price the same.

It seems to me that there is significant opportunity to offer powerful, cheaper smartphones. I know O2 are touting the HTC Smart as this very thing. But it doesn’t run android. I think (and hope) that when Nexus One and HTC Desire have their contract pricing plans revealed – should be soon as they launch in late March – we’ll see better plans for less. Ideally £30 a month for 18 months. But I fear £35 for 24. In which case they have no edge over the iPhone at all.

The iPhone is expensive and Apple is making huge amounts on it. HTC should be able to hit lower price points: don’t write much software, don’t do as much marketting etc.

[ originally published on Google Buzz ]

February 19th, 2010 - 4.25 PM | 1 Comment »