Cheaper Apple iPhone could mean trouble for Motorola

Motorola is the leading mobile phone maker in the US market. They are however struggling to compete against the rising challenge from companies like Nokia and Samsung.

However, their problems have just magnified with Apple announcing a USD 200 cut on their iPhone 8 GB edition.

Apple is now selling the cheaper iPhone for USD 399 as they aim to boost the sales during the upcoming holiday season.

This means that the Apple iPhone is now priced very competitively when compared to products from Motorola and even other players like Palm.

Motorola Razr2 and Palm Treo range of mobile devices are now expected to see massive competition from the Apple iPhone.

However, the only saving grace is that most of these mobile products are priced much cheaper when the customer enters into a contract with the company. Apple iPhone also requires the customer to enter a 2 year contract with AT&T.

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