Slashing the price of the 3G iPhone from $399 to $199 is a big change for Apple at a time when more mainstream consumers are looking to upgrade from regular cellphones to smart phones, said Kaan Yigit, a consultant with Solutions Research Group in Toronto. “All of a sudden, they’ve turned the iPhone from a much-loved and admired device, but not owned by many, into a mass-appeal and attainable mainstream device,” he said.
Only about 12 per cent of Canadian cellphone owners are using smart phones, which means the growth potential for all companies selling Internet-enabled mobile devices is ready to explode, now that the devices are in their price range, he said.
Forbes: The 3G iPhone is a machine designed to gobble up market share. The device will build on Apple’s splashy arrival in the handset market last year. Apple lost ground when it choked off the supply of the original iPhone ahead of the launch of this 3G version. Six months after putting out the iPhone last year, Apple had seized 26.7% of the U.S. smart phone market in the final quarter of 2007. Tech market tracker IDC reported June 6 that Apple had sagged to 19.2% during the first quarter of this year, well behind rival Research in Motion (nasdaq: RIMM – news – people ), which dominates the market with its 44.5% share.