As more and more people move away from contracts, they are also now forced to move away from Apple because Apple really isnt giving them any other option. Android has now shown that it can go toe to toe with iOS, and people in this economy are just looking for what they are getting for their money. HTC and samslum are now offering smartphones that make you quickly forget about the pre-paid iPhone. At almost 900.00 its not even a contest. The new HTC M7 coming out in a few months will crush the iPhone just like the galaxy s II has begun to do. So you take someone who is neutral and doesnt care what phone eco system they use, and you make them a android system user because the price is so much more reasonable. Once a person buys into a eco system it is much harder to get them to switch, especially if theyve made a large app investment for that eco system. Say they buy a samslum phone but learn they dont like it. Theyll just buy a nexus or HTC which allows them to stay with android and still save them money.
Pre-paid is one of the biggest growing trends in smartphones and sadly Apple essentially has nothing competitive to offer. This is why Apple has lost market share so quickly. Smartphone users are fed up by draconian long-term contracts, but Apple is telling them, were not a viable option. Even pre-paid carriers like cricket and Leap are admitting this. The iPhones impact is not going to be very much, because its a very high-priced product, says James Ratcliffe. The environment remains a challenge. The only way Apple is going to stay viable in the smartphone market is if they offer a more reasonably priced alternative to android. Sadly, I feel theyll realize this too late.