We all know what happened to the smartphone world when Apple first unveiled the all touchscreen phone in 2007. Before the iPhone, the total number of all touchscreen phone was 1 (LG Prada). After the iPhone, the total number of all touchscreen phone equals gazillion. Now, it’s almost impossible to find any phone manufacturer without an touchscreen model.
But, do you know what it also did to the price of all the smartphones? Initially, the original iPhone was quite expensive at $599. Then, when it launched 3G model in 2008, they reduced it down to $199 and that magic price has stuck for a very long time. In order for any other phones to compete, they cannot price their phone above $199 even for a brand new phone that have more expensive features than iPhone. They just can’t. Of course, I’m only referring to the phones that are subsidized by the carriers for signing minimum 2 year contract with data services. Only the unlocked phones are priced higher.
Whether you like it or not, Apple and its iPhones had significant impact on the wireless industry. And for the consumers. Before the iPhone, not many people were willing to pay $30 on top of their voice plan for the data. Now, it’s very common for people to have unlimited data plan. And because of all the data that people use, carriers are forced to upgrade their infrastructure.