It did, obviously.
"Feature phones" that used to sell for hundreds of dollars, like the RAZR, are now given away free because no one will pay money for anything other than an iPhone. My daughter's free phone was a model that used to be $199 before Telus got the iPhone two months ago.
The RAZR is what now ? 4 years old ? 5 ? Heck, I bought my GF a KRZR like 2 years ago for 50$ new from a carrier. That should show you how much BS you're spouting.
Blackberries are still anywhere from 200$ to 500$ with a 3 year contract everywhere, same as the iPhone. Same for other high end Windows Mobile or even dumbphones.
Of course some phones are free and featureful, they are last years and the year before that models.
As a result, all of the major handset makers are on the ropes as they slit their throats trying to lower prices in a race to the bottom. Sony-Ericsson, Motorola, Nokia are all handing out one bad report after another, and all freely point to Apple as the cause of their problems. Some of these reports basically suggest they have no idea how to compete, and the companies are just going to go after the low end instead. Good luck with that.
Uh, not following the market are you ? Motorola just released the Droid, which Verizon is happy to sell for 199$ with a 2 year contract.
Nokia just released the N900, which they sell for a whopping 599$ without contract (no carrier subsidy yet, since it uses T-mobile frequencies, and Wind Mobile/Videotron in Canada which has yet to launch).
And Sony Ericsson just announced their Android offering, the Xperia X10 (a continuation of the Xperia family that used Windows Mobile). The phone is way higher end than the iPhone 3GS, using a Snapdragon 1 GHZ chip, 8 MP camera with led "flash" and Droid like higher resolution screen. The phone is also expected to sell for a higher price than the iPhone after subsidy, since it's retail price has been fixed to about 750$.
Low-end right ? Stop being ignorant and spouting BS. The iPhone isn't the end all be all of Smartphones. It's 3rd in market share, behind NOKIA and RIM. You know, the same Nokia you just said didn't know how to compete and the same RIM that was behind the iPhone in market share last year (yes, they caught up and passed the iPhone in sales this year).
The iPhone is a great phone and all, but it's not the greatest thing since sliced bread. It's just another phone on the market.
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As far as the article is concerned, it's a load of crap. Even when Rogers had the exclusivity of the iPhone, their network didn't crap out (I'm a rogers subscriber). They even offered MMS and Tethering when it became available, and the Tethering was included in your data plan (so no extra cost). So much for the argument that AT&T isn't to blame here.