'Too Expensive'...Can Apple Overcome?

Apple has always been knocked for their prices being more expensive than most of its competitors.

In the speech Monday, it is becoming clear that Apple is taking this price concern, head on.

The most aggresive price move has been the decision to drop the price of the 3G to $99, 8GB that is.

The effect of this price lowering will help Apple reach an extended client base, who can better afford the devices. As compared to the $199 Palm Pre that was supposed to be the "iPhone Killer". The Pre is now $100 more and can easily help those on the fence, make a decision.

Yet, this just isn't about the Palm Pre, its any phone of higher list price in general. Such as the Android, or BlackBerry Storm.

The best way to tell how it will affect consumers, is by just doing a comparison to the last price cut, which was $399 to $199 last year, over 50% reduction! Analyst Gene Munster notes that the price cut last year tripled the sales of the device, from 4.7 million to 15 million.

There are more factors to consider now, people have iPhones already and this economic recession. However, this price cut shows Apple is being aggressive and ready for the competition.