I have always had concerns about this. If you look at my hypothesis (scroll down the screen under Upcoming and Rumored Devices) I have said that WP7 needs to be smart about competing with the other manufacturers. I mean let's get real here, the price to build the phones like the Focus S are not as high as you think. It is using a CPU and GPU that has been out for a long time. Yes, it has a Super AMOLED Plus display HOWEVER the Samsung Infuse also has the same screen technology and is $100 on contract at AT&T. So, I hope they give some consideration to price. The manufacturers wouldn't lose out if the new devices were priced around $100 because like I said it isn't costing them that much to build the devices. Microsoft also wouldn't lose because they would have devices that undercut the competition and allows more people to turn their heads to WP7.
Originally Posted by buckeyeballer09
Take a look at Blackberry and WebOS. The problem with either of those companies was that they tried to price their devices at the same level of the competition. Blackberry is barely holding on. In fact, they just released their Torch 2 (although they didn't put in the 2 part and just left it as Torch) not too long ago and it was $50 on contract at AT&T. The first Torch cost $200 I believe. So, my point is that in the game of smartphones you have to recognize that there are 2 leaders: Android and Apple. I don't think you should price your phones at the same price of your competition, but rather undercut them by offering a good OS at a lower price AT LEAST FOR NOW. Then, next year when Microsoft unveils the ecosystem with Windows 8 and Xbox, at that time you can compete on the same level. So if it were me: I would undercut the competition in price, gain a bigger fan base, and then go one on one with the competition with windows 8 release and the ecosystem.