The much-anticipated 2008 WWDC Apple keynote ended a short while ago, and many are underwhelmed, to say the least. The one piece of really noteworthy information that Steve Jobs shared with the world is that the new iPhone 3G will be selling for a jaw-droppingly low $199 (and $299 for the 16 Gb version). With the iPhone 1 unequivocally stealing the hearts, but not necessarily the pocket books, of gadget lovers everywhere, what could the low price point of the iPhone 3G mean for the industry?

Steve Jobs said in the keynote that a poll was taken of people who liked the iPhone but didn’t purchase one. The survey showed that 56% of the respondents were hesitant to adopt the handset due to the high price point. The new iPhone 3G pricing is meant to appeal to that target group.

However, the new low pricing could have epic effects on the smartphone market. As the iPhone debuted at a hefty $599, other smart phone manufacturers like Blackberry, HTC, Palm and others were able to continue selling their handsets for hundreds of dollars. The iPhone has become the industry standard for development and progress; who is to say that the new price point won’t force handset manufacturers and networks to lower their smartphone prices to remain competitive?

After all, why would anyone want to spend upwards of $400 for a high-level Blackberry with T-mobile when the new 3G iPhone is faster, half the price, and now has all the push-technology that drives business and was once more exclusive to Blackberry? I know I certainly wouldn’t. To remain competitive, manufacturers and networks will need to lower price points to keep customers from flocking to AT&T, and even manufacturers who retail with AT&T will need to devise ways to lower handheld prices to sell devices at all.

On another note, HTC’s new handsets, the Touch Diamond and the Touch Pro, boast Windows Mobile 6.1 and a revolutionary 3D TouchFlo interface. I find the sets to be highly competitive with the Apple iPhone. However, the handsets have a very expensive look to them, and HTC might be forced to lower the prices of their new flagship handsets drastically to promote the adoption of the new software in light of the new iPhone pricing.

There might not be a way for Blackberry, HTC, and others to quickly respond to the shift in the market. Lowering handheld prices requires upgrading to more efficient and cost-effective technology, which takes time. With the new iPhone rolling out next month, that isn’t a lot of time for manufacturers and networks to respond to Apple’s move for market dominance.

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Entry was posted on Monday, June 9th, 2008 at 5:05 pm under Apple.

Read more entries by Triston McIntyre.
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