Apple may seem like the big dog when it comes to smartphones but with Android being a big enough player in the market,  Apple can (and should) respond when appropriate to Android’s business and marketing strategies. The Huffington Post recently poised a big question to confront Apple in 2011: exactly how will Cupertino react to Android’s apparent “how low can you go” price cutting efforts? It’s a hot discussion that was sparked last week originally by Fortune magazine:

Tran says that phones made from the BCM2157 chipset will retail for under $100 and may dip as low as $75. Those devices should debut in just 3-6 months (and we might hear about them next month at CES).

If you take a moment to think about the price reduction, it’s a truly substantial cut given that the enormously popular pre-paid Android devices are now running for about $180. Reducing the price below $100 will not only make Android more attractive in the eyes of prospective consumers, it could also prompt Apple to revamp its pricing plans.

Realistically, the Android slash would probably affect Apple’s low-end strategy, which until now has been to serve up the previous year’s model at a price point of $99 (with a two-year contract as well). The total cost of this “package” still drastically outpaces the deal offered by Android. Apple may have to create a new pricing strategy to mitigate the impact of the $100 (or less) Android phones as a result. What do you think of the possibility? Let us know in the comments below!

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[Source: Fortune, The Huffington Post]

Authors: TechHead

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