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$199 puts Android right up against the iPhone

So comments reader, Jon Bradford:

What I find most odd about the reported details of the G1 to date is its price of $199.

At this price point Android goes directly up against the iPhone which has been around for around 15 months and has sold millions of units. In addition, it is agreed that the iPhone has a slicker interface and is much “sexier”.

So T-Mobile and Google are going to need a surprise or two up their sleeve to persuade punters not to buy an iPhone. Much as alpha geeks salivate at the prospect of applications on their mobile, normobs (at this stage) couldn’t care less. So what might they be preparing – it appears that the subsidy is relatively small so does this mean much lower (and accessible) tariffs – or tariffs inclusive of data – this could be appealing to normobs (rather than the £35 a month tariffs).

Interestingly, it was reported this morning that T-Mobile might provide users with a free email access to Gmail (maybe a kickback somewhere)? Imagine normobs getting free push email on their phones, now that could be interesting. This might get them hooked and pay for a full data tariff.

I think the surprise this afternoon won’t be the hardware or the price point (clearly) but tariffs and services … what could they have in mind?

By Ewan

Ewan is Founder and Editor of Mobile Industry Review. He writes about a wide variety of industry issues and is usually active on Twitter most days. You can read more about him or reach him with these details.

11 replies on “$199 puts Android right up against the iPhone”

Normobs have had free access to push Gmail on basically all SEM phones (even really low-spec ones) for years.

Well, free = £5 or whatever for a basic mobile data backage. But probably waaaaay cheaper than the tariff we are looking at for the G1. SEM have done a brilliant job of hiding the Gmail light under a very large bushel though.

/m

If I was on T-Mobile, I would pick this over the iPhone simply to not have to go through changing carriers. If the major carriers (at least in the US) offered a larger variety of “smart phones” I think it would be a tougher choice for consumers.

It is going to have to be the monthly fees that attract folks to TMobile. We hear daily that people love the iPhone, want to have the iPhone, can't believe it's ease of use. But then they talk about the minimum $120 in monthly fees and walk away.

If TMobile offers the phone, with 1000 minutes, unlimited texting, and unlimited data for under $70 then there is something to compete with the iPhone. If they make it $59, watch out.

Most people loved the idea the iPhone was reduced to $199, but they didn't realize the $15 extra a month for two years they would be paying in fees that ultimately made the 3g phone MORE expensive.

Times are tough here in the states right now. Lower the monthly fees, get people hooked, and go from there…

Giff Gfroerer, i2sms

If I was on T-Mobile, I would pick this over the iPhone simply to not have to go through changing carriers. If the major carriers (at least in the US) offered a larger variety of “smart phones” I think it would be a tougher choice for consumers.

It is going to have to be the monthly fees that attract folks to TMobile. We hear daily that people love the iPhone, want to have the iPhone, can't believe it's ease of use. But then they talk about the minimum $120 in monthly fees and walk away.

If TMobile offers the phone, with 1000 minutes, unlimited texting, and unlimited data for under $70 then there is something to compete with the iPhone. If they make it $59, watch out.

Most people loved the idea the iPhone was reduced to $199, but they didn't realize the $15 extra a month for two years they would be paying in fees that ultimately made the 3g phone MORE expensive.

Times are tough here in the states right now. Lower the monthly fees, get people hooked, and go from there…

Giff Gfroerer, i2sms

Normobs have had free access to push Gmail on basically all SEM phones (even really low-spec ones) for years.

Well, free = £5 or whatever for a basic mobile data package. But probably waaaaay cheaper than the tariff we are looking at for the G1. SEM have done a brilliant job of hiding the Gmail light under a very large bushel though.

/m

If I was on T-Mobile, I would pick this over the iPhone simply to not have to go through changing carriers. If the major carriers (at least in the US) offered a larger variety of “smart phones” I think it would be a tougher choice for consumers.

It is going to have to be the monthly fees that attract folks to TMobile. We hear daily that people love the iPhone, want to have the iPhone, can't believe it's ease of use. But then they talk about the minimum $120 in monthly fees and walk away.

If TMobile offers the phone, with 1000 minutes, unlimited texting, and unlimited data for under $70 then there is something to compete with the iPhone. If they make it $59, watch out.

Most people loved the idea the iPhone was reduced to $199, but they didn't realize the $15 extra a month for two years they would be paying in fees that ultimately made the 3g phone MORE expensive.

Times are tough here in the states right now. Lower the monthly fees, get people hooked, and go from there…

Giff Gfroerer, i2sms

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