Android's Going Cheap
4:25 PM -- Dell Technologies (Nasdaq: DELL)'s $99 Aero for AT&T Inc. (NYSE: T) puts the computer maker right in the thick of the smartphone wars, but also highlights another important trend in the Google (Nasdaq: GOOG) operating system's gradual takeover of the mobile world: Androids are going cheap.
In addition to Dell, Samsung Corp. recently announced the $99 Intercept for Sprint Corp. (NYSE: S) and T-Mobile US Inc. has been offering $99 deals on the Vibrant. Breaking the $200 smartphone price barrier is more important than developing the next "iPhone killer" (yawn) for Google and friends. Expect to see a lot more inexpensive Androids in the year to come.
When you consider how Google derives revenues from serving up Internet ads, the importance of more mass-market Android phones becomes abundantly clear. Anything Android that gets the mobile Web into the hands of more people is good news for the big G.
And, even though cheap is good here in the cash-strapped US of A, the price point of a phone becomes even more important in developing markets. So, we could even see Android vendors and carriers limboing below that $99 bar soon enough.
— Dan Jones, Site Editor, Light Reading Mobile