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Analyst: Increasing Competition Could Bring Lower iPhone Prices

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As the touchscreen smartphone market enters a more competitive landscape, Apple is likely to be forced to either lower its price on the iPhone or revise growth and margin expectations for the device, according to a comprehensive analysis of the growing sector released Friday by Royal Bank of Canada.

RBC analyst Mike Abramsky elaborated on research published earlier this month indicating Apple’s next version of the iPhone, expected by many to come to market later this year, will see much more robust competition from the likes of Google, Palm, Microsoft and HTC, none of whom had anything comparable to the iPhone until quite recently.

Among the options available to Apple aside from outright price cuts – which acting CEO Tim Cook has indicated the company is “looking into” – working with carriers such as AT&T on adjustments to the phone’s data plan offerings seems to be a likely strategy for increasing the value of iPhone as a choice.

Click on RBC’s handy chart above for a larger image and a comprehensive view of the current landscape.

Via AppleInsider

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