Buyer Power-
While most consumers expect to pay a reasonable to high-end price for a fully equipped iPod and PDA device, most consumers are used to getting their phones for free. In fact "Free is the price many consumers expect in the United States. Carrier offers say it all. Out of Cingular's 82 offered phones, 10 are free, and another 22 sell for less than $40. During the holidays, some phone and consumer electronics stores offered Motorola Razrs two for the price of one. There is expectation that phones will be free with service, or at least cheap. The iPhone will sell for $499 or $599, depending on model, according to Jobs.
Buyer Power- While most consumers expect to pay a reasonable to high-end price for a fully equipped iPod and PDA device, most consumers are used to getting their phones for free. In fact "Free is the price many consumers expect in the United States. Carrier offers say it all. Out of Cingular's 82 offered phones, 10 are free, and another 22 sell for less than $40. During the holidays, some phone and consumer electronics stores offered Motorola Razrs two for the price of one. There is expectation that phones will be free with service, or at least cheap. The iPhone will sell for $499 or $599, depending on model, according to Jobs.
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