This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Technology Rumor of the Day: Apple

"Sequels that copy the original look of the first-generation model too slavishly, tend to have short life spans in the phone business," says Global Crown Research analyst Tero Kuittinen. As the Razr showed, "this cookie cutter strategy ended up backfiring spectacularly," he added.

Granted, unlike the Razr, Apple's iPhone is more than hardware. Users rave about it as a great media player and a decent mobile Web device. And the enormously popular iPhone App store, which lets users download software to run features like Facebook and weather widgets, gives Apple a competitive edge.

But is that enough to keep the halo glowing?

Apple does have one option if it needs to reinvigorate iPhone's sales: Cut the price to $99.

Sounds good, but don't hold your breath. Apple doesn't lower prices on new, improved models. Last year, for the rollout of the 3G iPhone, the price was cut from $400 to $200 when Apple agreed to have telco partner AT&T cover a bigger portion of the cost to buyers. In exchange, AT&T locked iPhone customers into higher-rate two-year contracts.

Apple is far too cunning, or proud, to repeat Motorola's pricing disaster. Toward the end, Razrs were given away two or three at a time as bait for new contracts.

The takeaway: Winning streaks are glorious, but they never last.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,056.99 -65.02 -0.38%
S&P 500 1,994.10 -6.02 -0.30%
NASDAQ 4,557.3110 -12.31 -0.27%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs