Now its all just speculation right now, but its sounding more and more like the iPhone could cause other smartphones’ prices to go up. How? The more they try and be like the iPhone to more expensive the components become, namely the flash memory and multi-touch screen technology.

Flash memory is probably the most expensive part that other companies are looking to adopt, namely because there is such a shortage of the stuff. Another big issue that is trying to be replicated is the amazing visual appearance and ease of use of the iPhone due to some powerful graphics chips, which other handsets don’t have.
Those graphics chips alone would raise the consumer end price of a smartphone considerably all on their own, I mean they would cost the manufacture about $10 each which by the time to consumer got the bill it would be several times that tacked on. So, in the long run, the iPhone could cause higher smartphone prices, but at the same time, 1 million iPhones sold in 74 days, most of them at $600 each, is pretty good evidence that people don’t have much of a problem paying more for a truly innovative and quality product.
iPhone to push smartphone prices? [via electronista]








