Apple is already competing on multiple fronts with Android, RIM, Nokia and others on a variety of different platforms. However, recent years have not been kind on the iPhone. This is not because Apple has been slacking but rather Android has been playing a fast game of catch up. Now it churns out more powerful and more dynamic devices than the iPhone (Regardless of what iPhone fans say). However, Android and others are not just competing in terms of innovation but also in terms of price. HTC and Motorola rolled out some very impressive and affordable smart phones. This puts Apple in a very tight spot because realistically speaking; the cult like devotion Apple commands from its adoring fans is not going to last forever. Even Apple historians will tell you that.
So what can Apple do to even the odds? The answer is a price war. According to Forbes analysts Apple may start offering the iPhone 3GS for $0 with a two year contract from AT&T ($399 unsubsidized). In addition, it may cut down the price of the iPhone 4 to $99 and the iPhone 5 for $199. If Apple does go ahead with the price cuts, analysts think it may double its global market opportunity because it would put the iPhone well within the reach of economically conservative users.
In other news, this September might see two iPhones being released. One could be the iPhone 4S and the other the iPhone 5. Now there are is no official confirmation and even this rumor is weak by itself but it is worth following up. The iPhone 4S would be a basic unlocked model while the iPhone 5 will feature a new design and extra features. However, as we noted earlier, the iPhone 5 will not feature some of the upgrades we had hoped to see. Apple may not be slipping yet but its rivals are already steaming ahead.