Great article by John Gruber about the cheapening electronics and the future of Android handsets at the $100 level. Read here. In short, components are getting cheaper and surely Android phones will release before the typical June release of the iPhone at lower costs with features equaling those of the iPhone. Gruber argues that the game Google and Apple are playing are two different games (he continues to argue that Google has yet to release an iPod Touch competitor, quite a successful product for Apple).
The thing to me (and Gruber strongly relies on it in his article) is the emotional attachment to a device. Once you are in the ecosystem, used to the system, like the process, it is easier to upgrade to the next model once you are eligible. I bought a new iphone case today and thought about what I would do if my phone broke. Easy answer: go buy another one. I have gotten to the point where I don't know what I would do without it.
Emotional attachment is key to the marketing of any product and Apple has seemed to master the manufacturing of those emotions.
Blackberry had this going for them. But they fell way behind in the race and more and more Blackberry users are thinking about an Android or iphone for their next phone.
Will people abandon their loves for cheaper prices? I don't think so. Will people abandon their loves for more features? Seems to be so.
Will Apple fall behind in the features race? I don't see any proof of that anytime soon.