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Smartphones For Businesses Getting Cheaper, IPhone Is Still The Favorite

Written by Ken Gaebler
Published: 10/30/2009

More than one-quarter of smartphones now cost less than $200.

Growing competition and sales in business-friendly smartphones is driving down the cost of devices, although the pricey iPhone is still considered the favorite among business users.

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A study from ABI Research offers the good news for small business owners that smartphone prices are falling, with 27 percent of smartphones coming in at under $200, as compared to just 7 percent of smartphones in that price range in 2007.

By 2014, ABI Research projects that 45 percent of smartphones shipped that year will be priced below $200.

"Prices will hold at a certain point," ABI's mobile devices director Kevin Burden said. "We may never see a $30 smartphone. But over time, smartphones will take a substantial part of the mainstream handset market."

The competition in this market is getting fierce, with Verizon Wireless this week releasing details on its Motorola Droid, a smartphone with touchscreen features similar to the iPhone 3GS but running on Verizon's network and Google's Android operating system.

A survey conducted by J.D. Power and Associates found that the iPhone scored highest in smartphone satisfaction among business users.

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