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Is the Apple iPhone too Expensive for Mass Market?

Apparently at a Media Summit, Microsoft CEO Steve Ballmer said of Apple’s computers, iPhones and the Apple iPhone that “No one’s going to pay $500 more for a logo.” Ballmer sees it that the downturn in the economy is going to hurt Apple and Microsoft.

Ballmer believes the Apple iPhone 3G is too expensive and some people can’t afford it and can’t afford the data plan. It cost about $500 to manufacture. He doesn’t believe the Apple iPhone will dominate the smartphone market, nor will BlackBerry.

Ballmer reckons at $500 the iPhone will not reach all Americans and people in emerging markets. In China and India the most popular phones cost $25 to manufacture, Microsoft is at $125 in those countries and is a lot cheaper than the iPhone.

Ok, the Apple iPhone isn’t going to dominate; having said that they aren’t doing too badly are they. Besides, is the iPhone made for emerging markets? Yes the iPhone is expensive, but like most things over time will eventually drop in price.

Source — paidcontent