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iPhone Competitors Close In on Apple

By Harry Kimball,  Newser Staff

Posted Jun 10, 2009 12:23 PM CDT

(Newser) – Until recently, the iPhone ruled the smartphone roost, but a new crop of competitors could threaten Apple’s bottom line, Jon Fortt writes for Fortune. AT&T, the sole iPhone carrier, pays Apple $300 for every new customer. Until now, paying for the privilege made sense, because AT&T monopolized the “high-value data junkies.” But “these new iPhone rivals,” Fortt writes, “are bound to alter the math of the phone wars.”

If the Google G2 and the Palm Pre take off, “AT&T will have less incentive to subsidize the iPhone so heavily," Fortt writes. "And if Apple begins selling the iPhone through other US carriers, subsidies will come under even more pressure.” Apple is innovating in terms of software to keep its top-dog status, but the message is clear: “Competition is good for consumers, but probably not for Apple's profit margins.”

The iPhone 3G S.
The iPhone 3G S.   (AP Photo)
The Palm Pre.
The Palm Pre.   (AP Photo)
The T-Mobile G1 Android-powered phone.
The T-Mobile G1 Android-powered phone.   (AP Photo)
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These other phones don't have to overtake the iPhone to put pressure on Apple's prices. They just have to come closer than they have in the past. Apple is well aware of the problem, and is attacking it on multiple fronts. - Jon Fortt

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COMMENTS
Showing 2 of 2 comments
ack
Jun 14, 2009 12:30 PM CDT
If it didn't come from Apple, it's junk. All Apple products are perfect, wonderful, and best of class. Anyone who says otherwise is just a whiny Windows fanboy. In fact, I have it on good authority that Steve Jobs poops gold.
Yourself
Jun 10, 2009 9:26 AM CDT
LOL. this article is flawed. it's titled "iPhone Competitors Close In on Apple" but then the second paragraph start with the all important caveat word of "IF" as in "they really don't know if this will work on closing in on apple" or "we hope we can have some sort of impact" Lets call a spade a spade, Google's phone hasn't done much of anything in terms of popularity. i know one person who uses it, and he hates it. every time we hang out he's playing with my iphone. as for the Pre... enjoy sprint! Sprint, a company who has been losing over a million customers per-quarter can't possibly sustain itself too long at that rate.

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