Re:Android takes huge lead in US Smartphone market
by kenjackson on Wednesday July 06, 2011 @06:25PM
(#2736227)
For some reason that link doesn't work for me.
But my point isn't the price the customer pays. But rather the price the carrier pays to HTC/Samsung. That's the money that the actual OEM makes. Those prices, if they're equal to the non-contract price, aren't that far off of the iPhone. Even feature phones are routinely $150 or so.
http://www.verizonwireless.com/b2c/store/controller?item=pho...
$80 android phone right there. I assume that's lower margin than, say, the $200-300 iphones that Verizon sells with a 2 year contract.
Apple is culturally stuck to high margins. Google cares only about making sure Apple doesn't win and the other handset makers are used to pretty lean margins...
Androids will keep getting cheaper-- there'll be free/near-free ones out there soon.