More and more this is coming true what I said.
Now even Apple are admitting lower priced phones are getting better and better.
As I said. It's easier for a low price phone to get almost as good as a high priced phone, than it is for a high priced phone to get THAT much better every year.
We will and are finding more and more people who will question the $700 and $800 when something 1/3rd the price is almost as good for their needs.
Sure, there will always be a market for the top of the line, but with all products the market for that gets smaller as lower price models start to tick more and more people's box's
Those who ignore the lessons of history...
This is a cycle as old as manufacturing. Since people don't really get richer (after adjustment for inflation), the only way to make new products affordable is to turn older products into lower-priced commodities.
Will it happen simply because the cheap end keeps getting cheaper? No. Cheap crap doesn't erode the marketplace for quality, it simply brings "almost as good" to the masses. And it will always be perceived as cheap crap, because the manufacturers themselves have to maintain that distinction in order to sell their higher-end products. The factor more likely to drag down the price of the high-end smart phone is competition from the Next Big Thing.
The smartphone has succeeded in no small part because it is an amalgam of so many other pocket electronic devices. No more pagers, no more calculators, no more point-and-shoot cameras, no more PDAs, MP3 players, portable electronic games, GPS, ebook reader, audio recorder/dictation device.... The smart phone has eaten the lunch of a
long list of products. PLUS made the mobile Internet practical, PLUS brought personal computing power to huge numbers of people who would never have had a PC of their own (in other words, the
true personal computer). And it will also destroy Life Alert and similar medical monitoring devices/services before medical monitoring gear goes truly mass-market. It'll soon replace our wallets and credit cards... Basically, it's a very tough act to follow.
When will a new product come along that is so compelling and so useful that everyone must have it, and therefore pull consumer dollars away from the current darling? Maybe it will be 5 years, maybe 10, maybe 20. If we could predict the future, we'd already be rich. But that day will come. Human ingenuity has not been tapped-out. Something great will come along that can't be jammed into a smart phone form factor, or trumps the smart phone form factor altogether.
I smell the whiff of denial whenever someone posts, "It'll always be a premium product." Perhaps the subtext is, "If smart phone prices fall, Apple is doomed, and we don't want Apple to fall." Apple will continue to rule the roost as a purveyor of quality goods just so long as it comes up with new, quality products. It can't get by on iPhone forever. That's why the manufacturing behemoths of the past are also-rans today.