"Apple would first need to address the entry-level price point before introduction of a $99 iPhone," says Cote.
Apple fans will recall last year AT&T lowered the price of the iPhone to $199 from $400 by subsidizing a big portion of the sales price. The price cut juiced iPhone sales to 17 million last year, that's well above the 4 million iPhones sold in the last six months of 2007. The price strategy also highlights efforts to forestall the end of a strong two-year run for the iPhone. Entering its third year, the iPhone hits a phone fashion milepost where cool designs start to look a little uncool. Apple also faces a new smartphone assault from Research In Motion(RIMM), which seems to be hitting its stride after initial stumbles in the consumer market. And old foe Palm(PALM) has a new touchscreen Pre phone to rival Apple's iPhone coming this summer. And later this year Nokia(NOK) promises to jump into the touchscreen race with three smartphones. AT&T may be firing the first shot in the coming price plan war.>To order reprints of this article, click here: ReprintsTheStreet Premium Services For Personal Service: 877-471-2967
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 12,829.69 | 1,342.91 | 2,895.93 | 19.66 |
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116.23
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SPDR Gold
168.49
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-0.38%
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-0.31%
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