LONDON (ShareCast) - Apple (NASDAQ: AAPL - news) , not normally known for competing on price, could have triggered a mobile phone price
war after announcing that the 16 gigabyte version of its new iPhone model, the iPhone 3G S, would go on sale in the US at $199.
The move is seen as an attempt to spike the guns of Palm (NASDAQ: PALM - news) , once the market leader in hand-held electronic devices, which released its new mobile phone, the Pre, to rave reviews in the industry on Saturday, 6 June. The Pre is priced at $199.99, but only with a mail-in $100 rebate.
At the same time as it introduced its new version of the iPhone Apple announced a $100 price cut on the 8 gigabyte iPhone 3G, which previously retailed at the $199 price point now occupied by the newer model.
The move will put increased pressure on Palm, and also Canadian firm Research In Motion, producer of the Blackberry communication device, to respond with price cuts of their own.
The new iPhone goes on sale in the US and the UK on 19 June. The Palm Pre, which features a slide-out keyboard as well as touch-screen capabilities, is not yet on sale in the UK and no release date has been announced.
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