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Could An iPhone Rate Drop Be In The Works?

Shaw Wu believes competition will force Apple and AT&T to lower the cost of the monthly iPhone service plan.

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The general theme being put forth by writers like Philip Elmer-DeWitt at Fortune and others is that the competition springing up in the battle that is monthly service plans will ultimately favor owners of Apple's iPhone. The idea is that as Sprint, T-Mobile and others continue to offer service plans at a lower price point, the smartphone offerings put out by those companies will begin to climb. As a larger and larger chunk of the market is bitten out of Apple, the iPhone manufacturer will eventually have to cave to market pressure.

Wu did not respond to a phone call for comment.

Competition is always a good thing. But as an iPhone user and AT&T subscriber, I don't see the price for the service plan on these devices dropping anytime soon. BlackBerrys, G1 and the rest of the smartphone market still lack one driving factor: They aren't iPhones. No matter how hard Research In Motion or T-Mobile try, the devices they put out currently can't match the ease of use and user interface qualities that Apple has mastered.

That's not to say they should stop trying. In fact, as an iPhone user with unlimited text and data and a healthy voice minute allotment, I hope the price eventually will come down. But until a competitor emerges that can challenge the iPhone on its own ground, I just don't see it happening.

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