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Apple Changes the Game Again

By now, we’ve all seen the coverage from yesterday’s Apple WWDC keynote. And while people are writing reams about the new iPhone 3GS and (slightly less) about Snow Leopard, I think a lot of journalists are not paying enough attention to another piece of information that got released yesterday … that the iPhone 3G will Read more

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iphone-3g-20090608By now, we’ve all seen the coverage from yesterday’s Apple WWDC keynote. And while people are writing reams about the new iPhone 3GS and (slightly less) about Snow Leopard, I think a lot of journalists are not paying enough attention to another piece of information that got released yesterday … that the iPhone 3G will now be available for only $99.

Think about that for a second. $99. Try taking your family to a ballgame for under $99. It’s hard. Ditto a nice dinner in Manhattan. Or a round of golf at a private club. But for $99 you can put a computer in your pocket. That’s game changing.

What’s even more brilliant is that it totally trumps Palm‘s release of the Pre  (and will have all those folks developing Android phones rethinking their pricing model). Can you imagine going in to a store and having someone try and sell you another smartphone at this point?

“Here’s the Pre. We don’t actually have any in stock right now and there aren’t any apps that have been developed for it. But it runs WebOS and that’s going to be big someday. And you can have it for only twice as much as an iPhone 3G. Whaddya say, kid?”

Speaking of kids, that’s where this new sweet spot pricing is really going to find a market. $99 is babysitting money. It’s the same sweetspot Apple hit with the iPod shuffle. And plenty of teens will be happy to use the 3G as their “gateway phone” until they can afford the 3GS or Apple’s next innovation.

We often tell clients you can have it “cheap, fast or good” but you can’t have all three. With this latest move, Apple sure looks like they’re proving us wrong.

If their strategy works, the iPhone and Apple’s OS will become the defacto standard for mobile computing. How are you planning to take advantage of that (especially before everyone else gets in the game)?

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