Droid prices reduced, Is Droid feeling competition from Palm Pre and Pixi?
21 Nov2009
It has been less than a month since the launch of Droid and already we are hearing news of Droid prices being dropped. Amazon has reduced the Droid price to $150, whereas Dell is now selling the first Android 2.0 powered phone for just $120. Verizon is still selling the device for $200. These price drops just makes one wonder what could be the reason for this sort of action. Is it the beginning of the end for the so called iPhone killer? The following paragraphs bring to light a couple of rational explanation that would help in answering this question.
Everyone knows that the holiday season is near, so reducing the Droid price will ensure that more people purchase the Android based phone. More units sold, means more profit for distributors as they will be selling more contracts meaning more profit for Verizon. So its a win-win situation for all.
The news of this price drop comes just one day after online retailers reduced the price for Palm Pre and Palm Pixi. So does this in anyway mean, Droid is feeling the heat from Palm’s Pre and Pixi?.
What is your take on this one? Do share with us.
