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Switched On: Gluts and glory
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Switched On: Gluts and gloryTech Search
Switched On: Gluts and glory
Each week Ross Rubin contributes Switched On, a column about consumer technology.
Before the mass adoption of smartphones in the U.S., many fretted that the heavy subsidization model was feeding a free handset model that would keep Americans hopelessly addicted to basic voice plans and phones optimized for them. The price consumers paid in relation to the value of the handset, it was argued, was hopelessly out of whack. This year, a string of successful smartphones have shown that an increa... sing percentage of U.S. consumers are willing to pay $200 for a flagship device. On the other hand, there's still ample evidence that price and value can remain disconnected. And the carriers aren't making it much easier.
The smartphone surge has been driven in part by a desire to acquire the best and by a response to carrier advertising. However, a recent run-up in advanced smartphones have made it difficult to define a clear top of the line at many carriers, and carriers simply cannot promote them all with the same attention lavished on the iPhone or original Droid. Take the turn of events at Verizon, for example, which in the space of a few months has rolled out the Droid Incredible, Droid X and Droid 2, with the Samsung Fascinate in the wings. At least the first three have been all priced at $199, with strong precedent for the Fascinate coming in at that level. And while AT&T has been a bit more diverse in the operating systems of its recent spate of high-end contenders -- the iPhone 4, BlackBerry Torch and Samsung Captivate -- they too have all been priced at $199.
Before the mass adoption of smartphones in the U.S., many fretted that the heavy subsidization model was feeding a free handset model that would keep Americans hopelessly addicted to basic voice plans and phones optimized for them. The price consumers paid in relation to the value of the handset, it was argued, was hopelessly out of whack. This year, a string of successful smartphones have shown that an increa... sing percentage of U.S. consumers are willing to pay $200 for a flagship device. On the other hand, there's still ample evidence that price and value can remain disconnected. And the carriers aren't making it much easier.
The smartphone surge has been driven in part by a desire to acquire the best and by a response to carrier advertising. However, a recent run-up in advanced smartphones have made it difficult to define a clear top of the line at many carriers, and carriers simply cannot promote them all with the same attention lavished on the iPhone or original Droid. Take the turn of events at Verizon, for example, which in the space of a few months has rolled out the Droid Incredible, Droid X and Droid 2, with the Samsung Fascinate in the wings. At least the first three have been all priced at $199, with strong precedent for the Fascinate coming in at that level. And while AT&T has been a bit more diverse in the operating systems of its recent spate of high-end contenders -- the iPhone 4, BlackBerry Torch and Samsung Captivate -- they too have all been priced at $199.
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Switched On: Gluts and glory originally appeared on Engadget on Sat, 21 Aug 2010 19:30:00 EDT. Please see our terms for use of feeds.
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