Verizon Should Give Away the BlackBerry Storm

Verizon Wireless has decided to charge more for its soon-to-be-released BlackBerry Storm. Not only that, the new touch-screen smartphone actually costs more than Apple's (AAPL Quote) 8 GB iPhone 3G.

Verizon Wireless says it will charge $199 for the new BlackBerry Storm from Research In Motion (RIMM Quote). The price is actually $249.99 minus a $50 mail-in rebate so long as the customer signs up for a two-year service contract. Apple's 8GB iPhone 3G, meanwhile, costs $199 with a two-year contract with AT&T (T Quote).

However, Vodafone (VOD Quote) is going to be selling the Storm for zero in the U.K. It's charging nothing for the device so long as the customer signs a two-year contract. (Verizon Wireless is a joint venture between Verizon (VZ Quote) and Vodafone.) The Storm launches Nov. 21.

It would have been a terrific coup for Verizon if it had followed Vodafone's lead. Not that RIM or Verizon really has to resort to tricks to sell the new Storm. I've gotten to see a pre-production model in action, last month, and I've got to tell you, the Storm's super-sharp, almost magical touch screen (you will have to try it for yourself to understand) as well as all of its other nifty features should help this phone sell itself.

As for the Apple product, recently analysts have begun thinking out loud about future iPhone sales. They're not painting a very rosy picture. Some analysts have gone as far as to say that Apple has been forced to cut back production of its premier smartphone due to the downturn in the economy. One industry insider believes that iPhone sales could fall as much as 40% in the near future. That's not a good sign.