Smartphones Above $200 Are DOA

The picture to the right is of the HTC Touch Pro 2, which has been well reviewed. It's being offered by T-Mobile for $349. That's with a two-year contract. And it's too much.

The de-facto price ceiling for smartphones in the US market is $200 (with subsidy):

  • iPhone 3GS: $199
  • Android/G2: $199
  • Palm Pre: $199 
  • BlackBerry Storm: $199

Effectively you now can't sell a mainstream device for more than that. Witness the lackluster performance of Nokia's high-end N97 "iPhone killer." According to Garnter's Q2 sales numbers:

Its flagship high-end N97 smartphone met little enthusiasm at its launch in the second quarter of 2009 and has sold just 500,000 units in the channel.

It launched in the US without carrier support and had a price tag of more than $700. DOA.